The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2014

Statutory Instruments

2014 No. 569

Social Security

The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2014

Made

10th March 2014

Coming into force

6th April 2014

These Regulations are made by the Treasury in exercise of the powers conferred by sections 5(1) and (4) to (6) and 175(3) of the Social Security Contributions and Benefits Act 1992 (“the Contributions Act”)(1) and sections 5(1) and (4) to (6) and 171(3) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Northern Ireland Contributions Act”)(2).

A draft of this instrument was laid before Parliament in accordance with section 176(1)(za) and (zb)(3) of the Contributions Act and section 172(11ZA) and (11ZB)(4) of the Northern Ireland Contributions Act and approved by a resolution of each House of Parliament.

Citation and commencement

1.  These Regulations may be cited as the Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2014 and come into force on 6th April 2014.

Amendments to the Social Security (Contributions) Regulations 2001

2.  The Social Security (Contributions) Regulations 2001(5) are amended as follows.

3.  In regulation 10 (earnings limits and thresholds)—

(a) for “2013” substitute “2014”;

(b) in paragraph (a) (lower earnings limit: primary Class 1 contributions) for “£109” substitute “£111”;

(c) in paragraph (b) (upper earnings limit: primary Class 1 contributions) for “£797” substitute “£805”;

(d) in paragraph (c) (primary threshold: primary Class 1 contributions) for “£149” substitute “£153”; and

(e) in paragraph (d) (secondary threshold: secondary Class 1 contributions) for “£148” substitute “£153”.

4.  In regulation 11 (prescribed equivalents)—

(a) in paragraph (2A)—

(i) in sub-paragraph (a) for “£3,454” substitute “£3,489”; and

(ii) in sub-paragraph (b) for “£41,450” substitute “£41,865”;

(b) in paragraph (3)—

(i) in sub-paragraph (a) for “£646” substitute “£663”; and

(ii) in sub-paragraph (b) for “£7,755” substitute “£7,956”;

(c) in paragraph (3A)—

(i) in sub-paragraph (a) for “£641” substitute “£663”; and

(ii) in sub-paragraph (b) for “£7,696” substitute “£7,956”.

Mark Lancaster

Sam Gyimah

Two of the Lords Commissioners of Her Majesty’s Treasury

10th March 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“the principal Regulations”).

Regulation 3 amends Regulation 10 of the principal Regulations to specify the levels of the lower and upper earnings limits for primary Class 1 contributions and the primary and secondary thresholds for primary and secondary Class 1 contributions for the tax year beginning 6^th April 2014.

Regulation 4 amends Regulation 11 of the principal Regulations so as to provide for equivalents of the upper earnings limit, primary threshold and secondary threshold where the earnings period is a month or a year.

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it relates to routine changes to rates, limits and thresholds to a predetermined indexation formula.

(1)

1992 c. 4; section 5 was substituted by paragraph 1 of Part 1 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30) (“the WRPA 1999”) and section 5(1) was amended by section 1(1)(a) of, and Schedule 2 to, the National Insurance Contributions Act 2008 (c. 16) (“the Contributions Act 2008”).

(2)

1992 c. 7; section 5 was substituted by paragraph 1 of Part 1 of Schedule 10 to the WRPA 1999 (c. 30) and section 5(1) was amended by section 2(1)(a) of, and Schedule 2 to, the Contributions Act 2008. 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).

(3)

Section 176(1)(za) was inserted by section 7(5) of the Pensions Act 2007 (c. 22) (“the PA 2007”). Section 176(1)(za) refers to the designated tax year or any subsequent tax year. S.I. 2010/2650 provides that the designated tax year is the tax year 2010-11. Section 176(1)(zb) was inserted by section 1(2) of the Contributions Act 2008.

(4)

Section 172(11ZA) was inserted by section 8(5) of the PA 2007. The designated tax year for these purposes is the tax year 2010-11 – see footnote (c) above. Section 172(11ZB) was inserted by section 2(2) of the Contributions Act 2008.

(5)

S.I. 2001/1004; relevant amending instruments are S.I. 2009/111, 2011/940, 2013/558.