1

Subject to the provisions of paragraph (2) of this regulation, where in respect of earnings paid in any year of assessment an earner has or, but for the provisions of regulation 49 of these Regulations, would have paid Class 1 contributions and those earnings are chargeable to income tax under Schedule D, he shall be excepted from liability to pay contributions under section 15(1), (2) and (5) of the Social Security Contributions and Benefits (Northern Ireland) Act 199243 (Class 4 contributions recoverable under the Income Tax Acts) on so much of his profits or gains for that year of assessment as exceed the smaller of the 2 money sums specified in section 15(3)44 of that Act and do not exceed the greater of those 2 money sums and equal—

a

in the case of an earner who has or, but for the said provisions, would have paid Class 1 contributions at the normal rate, the value of Class 1 contributions so paid or which, but for the said provisions, would have been paid, multiplied by 100 and divided by the figure of the primary percentage;

b

in the case of an earner who has or, but for the said provisions, would have paid Class 1 contributions at the reduced rate, the value of the Class 1 contributions so paid or which, but for the said provisions, would have been paid, multiplied by 100 and divided by the figure of the reduced rate;

c

in the case of an earner who has or, but for the said provisions, would have paid Class 1 contributions at the contracted-out rate, the value of the Class 1 contributions so paid or which, but for the said provisions, would have been paid, multiplied by 100 and divided by the figure of the contracted-out rate.