The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments) (Consequential Amendments) Order 2014

Social Security Administration Act 1992

2.  In section 121C of the Social Security Administration Act 1992 (liability of directors etc. for company’s contributions)(1)—

(a) in subsection (5) for “at the prescribed rate” substitute “at the Class 1 rate on the Class 1 element of the specified sum, and otherwise at the prescribed rate,”;

(b) in subsection (7)(c) after “interest on it” insert “at the Class 1 rate on the Class 1 element of it and otherwise”; and

(c) in subsection (9)—

(i) before the definition of “contributions” insert—

““the Class 1 rate”—

(a)

in subsection (5) means the rate from time to time applicable under section 103(1) of the Finance Act 2009; and

(b)

in subsection (7)(c) means the rate from time to time applicable under section 103(2) of that Act;

“the Class 1 element”, in relation to any amount, means so much of that amount as is calculated by—

(a)

multiplying that amount by so much of the specified amount as consists of Class 1 contributions; and

(b)

dividing the product of that multiplication by the specified amount;”; and

(ii) in the definition of “contributions” after “in respect of contributions” insert “(and accordingly, in the definition of “the Class 1 element” given by this subsection, “Class 1 contributions” includes any interest or penalty in respect of Class 1 contributions)”.

(1)

1992 c. 5. Section 121C was inserted by section 64 of the Social Security Act 1998 (c. 14) and has been amended by paragraph 10 of Schedule 5 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) and by section 5(3) of the National Insurance Contributions and Statutory Payments Act 2004 (c. 3).