Modification of the application of section 44(5A) of the 1992 Act
2.—(1) Where, by virtue of section 44A(1) of the 1993 Act, section 44(6) of the 1992 Act(1) has effect for the tax year 2000-01 or any later tax year, in relation to some but not all of the earnings of an earner, the application of section 44(5A) of the 1992 Act(2) is modified for that year in accordance with this regulation.
(2) In a case where the year is one in which the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in a tax week is reduced under section 37 or 38A of the 1993 Act(3) (reduced rates of Class 1 contributions for earners in contracted-out employment and reduced rates of Class 1 contributions, and rebates, for members of money purchase contracted-out schemes) subsection (5A) of section 44 of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that sub-section shall be calculated by applying the formula—
where—
L is the weekly lower earnings limit for that year, and
N is the number of tax weeks in that year in which a Class 1 contribution for the earner is reduced in accordance with section 37 or 38A of the 1993 Act.
(3) In a case where the year is one in which an amount is paid in respect of an earner under section 41(1) of the 1993 Act(4) (minimum contributions towards appropriate personal pension schemes) subsection (5A) of section 44 of the 1992 Act is modified so that the qualifying earnings factor for the purposes of paragraph (a) of that subsection shall be zero.
See paragraphs 1 to 3 of Schedule 4 to the Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9) and Article 125(2) and (4) to (6) of the Pensions (Northern Ireland) Order 1995
Section 44(5A) was substituted by Article 125(1) of the Pensions (Northern Ireland) Order 1995. See also paragraphs (4) to (6) of that Article
Section 37 was amended by paragraph 95 of Schedule 6 to the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)), paragraph 6 of Schedule 10 to the Welfare Reform and Pensions Act 1999 (c. 30) and paragraph 50 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671). Section 38A was inserted by Article 134(4) of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 96 of Schedule 6 to the Social Security (Northern Ireland) Order 1998, paragraph 52 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 and paragraph 7 of Schedule 10 to the Welfare Reform and Pensions Act 1999
Section 41(1) was substituted by Article 135(2) of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 56 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999