Statutory Instruments
SOCIAL SECURITY
NORTHERN IRELAND
Made
27th January 2000
Laid before Parliament
31st January 2000
Coming into force
6th April 2000
The Treasury, in exercise of the powers conferred on them by sections 5, 121(1) and 171(3), (4) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992(1) and of all other powers enabling them in that behalf, hereby make the following Regulations:
1.—(1) These Regulations may be cited as the Social Security (Contributions) (Amendment) (Northern Ireland) Regulations 2000 and shall come into force on 6th April 2000.
(2) In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations (Northern Ireland) 1979(2).
2. For regulation 7 of the principal Regulations (lower and upper earnings limits and earnings threshold)(3) there shall be substituted—
7. For the purposes of section 5(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (which provides for lower and upper earnings limits and primary and secondary thresholds to be specified for each tax year in respect of Class 1 contributions), for the tax year which begins on 6th April 2000—
(a)the lower earnings limit (for primary Class 1 contributions) shall be £67;
(b)the upper earnings limit (for primary Class 1 contributions) shall be £535;
(c)the primary threshold (for primary Class 1 contributions) shall be £76; and
(d)the secondary threshold (for secondary Class 1 contributions) shall be £84.”
3. For regulation 8 of the principal Regulations (equivalent amounts)(4) there shall be substituted—
8.—(1) The prescribed equivalents of the lower and upper earnings limits and the primary and secondary thresholds, for the purposes of—
(a)sections 6(1), 6A(1), 8(1) and 9(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (which provide for liability for Class 1 contributions, notional payment of primary Class 1 contribution where earnings are not less than the lower earnings limit, the calculation of primary Class 1 contributions and the calculation of secondary Class 1 contributions respectively)(5), and
(b)sections 37(1) and 38A(1) of the Pension Schemes (Northern Ireland) Act 1993 (reduced rates of Class 1 contributions and rebates)(6),
shall be determined in accordance with the following provisions of this regulation.
(2) Subject to paragraphs (4) and (5) of this regulation, the prescribed equivalents of the lower and upper earnings limits shall be—
(a)where the earnings period is a multiple of a week, the amounts calculated by multiplying the lower and upper earnings limits (“the weekly limits”) by the corresponding multiple;
(b)where the earnings period is a month, the amounts calculated by multiplying each of the weekly limits by 41/3;
(c)where the earnings period is a multiple of a month, the amounts calculated by multiplying each of the weekly limits by 41/3 and multiplying each result by the corresponding multiple;
(d)in any other case, the amounts calculated by dividing each of the weekly limits by 7 and multiplying each result by the number of days in the earnings period concerned.
(3) Subject to paragraphs (4) and (5) of this regulation, the prescribed equivalents of the primary and secondary thresholds shall be—
(a)where the earnings period is a month, £329 in the case of the primary threshold and £365 in the case of the secondary threshold;
(b)where the earnings period is a year, £3,952 in the case of the primary threshold and £4,385 in the case of the secondary threshold;
(c)where the earnings period is a multiple of a week, the amounts calculated by dividing the relevant figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;
(d)where the earnings period is a multiple of a month, the amounts calculated by dividing the relevant figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;
(e)in any other case, the amounts calculated by dividing the relevant figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.
(4) The amounts determined in accordance with—
(a)paragraph (2)(b) and (c) of this regulation, and
(b)paragraph (3)(c) and (d) of this regulation,
if not whole pounds, shall be rounded up to the next whole pound.
(5) The amounts determined in accordance with—
(a)paragraph (2)(d) of this regulation, and
(b)paragraph (3)(e) of this regulation,
shall be calculated to the nearest £0.01, and any amount of £0.005 or less shall be disregarded.”
4. In regulation 9(1) of the principal Regulations (calculation of earnings-related contributions)(7) paragraph (ii) of sub-paragraph (b) shall be omitted.
Greg Pope
Jim Dowd
Two of the Lords Commissioners of Her Majesty’s Treasury
27th January 2000
(This note is not part of the Regulations)
These Regulations further amend the Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979 No. 186) (“the principal Regulations”).
Regulation 1 provides for citation, commencement and interpretation.
Regulation 2 substitutes regulation 7 of the principal Regulations to specify the lower earnings limit, upper earnings limit, primary threshold and secondary threshold for the tax year beginning on 6th April 2000.
Regulation 3 substitutes regulation 8 of the principal Regulations to provide for the equivalents of the lower earnings limit, upper earnings limit, primary threshold and secondary threshold where an employed earner’s earnings period is other than a week.
Regulation 4 revokes regulation 9(1)(b)(ii) of the principal Regulations (which provided for a minimal primary Class 1 contribution to be paid where the employed earner’s earnings in the relevant earnings period marginally exceeded the lower earnings limit).
The costs to business of the amendments in the Welfare Reform and Pensions Act 1999 were covered in the Regulatory Impact Assessment for that Act. A copy of this Assessment can be obtained from the Department of Social Security, Better Regulation Unit, Level 3, The Adelphi, 1-11 John Adam Street, London, WC2N 6HT. A copy of the Assessment has been placed in the libraries of both Houses of Parliament. Certain other limits and thresholds increase broadly in line with the rise in price inflation while the upper earnings limit increases in accordance with the announcement in the March 1999 Budget.
1992 c. 7; section 5 was substituted by paragraph 1 of Part I of Schedule 10 to the Welfare Reform and Pensions Act 1999 (c. 30). Section 121(1) is cited because of the meaning ascribed to the word “prescribe”. Section 171(10) was substituted by paragraph 28(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671).
S.R. 1979 No. 186; the relevant amending Regulations are S.R. 1999 No. 118.
Regulation 7 was substituted by regulation 4 of S.R. 1999 No. 118.
Regulation 8 was substituted by regulation 5 of S.R. 1999 No. 118.
Sections 6, 8 and 9 were substituted, and section 6A was inserted, by paragraphs 2 to 5 of Part I of Schedule 10 to the Welfare Reform and Pensions Act 1999.
1993 c. 49; section 37(1) was substituted by paragraph 95 of Schedule 6 to the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)), and amended by paragraph 6(2) of Part II of Schedule 10 to the Welfare Reform and Pensions Act 1999. Section 38A was inserted by Article 134(4) of S.I. 1995/3213 (N.I. 22). Subsection (1) of section 38A was substituted by paragraph 96 of Schedule 6 to S.I. 1998/1506 (N.I. 10) and amended by paragraph 7(2) of Part II of Schedule 10 to the Welfare Reform and Pensions Act 1999.
Regulation 9(1) was substituted by regulation 7(a) of S.R. 1999 No. 118.