The Social Security (Contributions) Regulations 2001

[F1 Annual maxima for those with more than one employment U.K.

21.— (1) For the purposes of section 19(1) and (2) of the Act (power to prescribe maximum amounts of contributions and repayments of excess) if an earner is employed in more than one employment his liability in any year—

(a) for primary Class 1 contributions; or

(b) where both primary Class 1 contributions and Class 2 contributions are payable by him, for both primary Class 1 contributions and Class 2 contributions,

shall not exceed an amount which equals the amount found in accordance with paragraph (2).

(2) The amount is found as follows.

• Step One

  Calculate—

  

  • Here UEL is the upper earnings limit, and PT the primary threshold, specified for the year.

• Step Two

  Multiply the result of Step One by [F2 11.5%].

• Step Three

  Add together, in respect of all of the employed earner’s employments, so much of the earnings in each of those employments as exceeds the primary threshold and does not exceed the upper earnings limit.

• Step Four

  From the sum produced by Step Three subtract the amount found by the formula in Step One.

• Step Five

  If the result produced by Step Four is a positive value, multiply it by [F3 2 per cent].

  If that result is nil or a negative value, it is treated for the purposes of Step Eight as nil.

• Step Six

  Add together, in respect of all of the employed earner’s employments, so much of the earnings in each of those employments as exceeds the upper earnings limit.

• Step Seven

  Multiply the sum produced by Step Six by [F4 2 per cent].

• Step Eight

  Add together the amounts produced by Steps Two, Five and Seven.

  The result of Step Eight is the annual maximum, subject to the further qualifications in paragraphs (3) and (4).

(3) [F5 For the purpose only of determining the extent of the earner’s liability for contributions under paragraph (2), the amount of a primary Class 1 contribution which is paid at a rate less than [F6 the rate specified as the main primary percentage] because the earner is a married woman who has made an election to pay contributions at the reduced rate as mentioned in regulation 127, shall be treated as equal to the amount of the primary Class 1 contribution which would be payable if the election had not been made.]

(4) Paragraph (2) is subject to—

(a) section 12 of the Act (late paid Class 2 contributions); and

(b) regulations 63 to 65 (special provisions about Class 2 and Class 3 contributions paid late).

(5) Notwithstanding paragraphs (1) to (4), an earner shall be liable, in the first instance, for the full amount of the contributions which would have been payable but for this regulation.]

Textual Amendments

F1 Reg. 21 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 6

F2 Word in reg. 21(2) substituted by National Insurance Contributions (Reduction in Rates) Act 2023 (c. 57), Sch. para. 2(2)(a)(4)

F3 Words in reg. 21(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(2)(a)(ii)

F4 Words in reg. 21(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(2)(a)(iii)

F5 Reg. 21(3) substituted (6.4.2016) by The Social Security (Contributions) (Amendment) (No. 2) Regulations 2016 (S.I. 2016/352), regs. 1, 12 (with reg. 20)

F6 Words in reg. 21(3) substituted by National Insurance Contributions (Reduction in Rates) Act 2023 (c. 57), Sch. para. 2(2)(b)(4)

Modifications etc. (not altering text)

C1 Reg. 21 modified (for the tax year 2022-23) by National Insurance Contributions (Increase of Thresholds) Act 2022 (c. 16), s. 4(1)(3)

C2 Reg. 21 modified (for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 6(1)