National Insurance Act 1965

12 Recovery by employer of insured person's flat-rate contributions.

(1) The provisions of this section shall have effect with respect to the recovery by an employer from an insured person of the amount of any contribution under section 3 of this Act paid or to be paid by the employer on behalf of that person.

(2) Where the insured person receives from the employer any wages or other pecuniary remuneration in respect of an employed contributor's employment, the amount of any contribution paid or to be paid by the employer on behalf of the insured person shall, notwithstanding the provisions of any Act or any contract to the contrary, be recoverable by means of deductions from such wages or other remuneration due from the employer to that person and not otherwise:

Provided that—

(a) no such deduction may be made from any wages or remuneration other than such as are paid wholly or partly in respect of the contribution week or part of the contribution week for which the contribution is payable or may become payable as the case may be; and

(b) no such deduction may be made of any contribution not yet paid except where it is not payable until after the date when the said wages or remuneration are paid.

(3) Where the wages or other pecuniary remuneration of an insured person are paid at calendar monthly intervals, then, notwithstanding the provisions of subsection (2) of this section, it shall be lawful for the employer, at his option, to recover from each such payment of wages or remuneration, in lieu of the amount authorised to be recovered by him in accordance with the said provisions, an amount equal to one-twelfth of the contributions paid or to be paid by the employer on behalf of the insured person during the calendar year :

Provided that—

(a) where the employment commences after the beginning, or is to be terminated before the end, of a calendar year, the contributions paid or to be paid by the employer on behalf of the insured person during the calendar year shall be calculated for the purpose of ascertaining the said fraction of one-twelfth as though the employment continued throughout that year;

(b) in calculating the said fraction of one-twelfth, fractions of a penny may be disregarded;

(c) such adjustment (whether by way of repayment or increased or reduced deduction or otherwise) as may be necessary to secure that the amounts which have been recovered in accordance with this subsection are, when so adjusted, equal to the amounts which could have been recovered in accordance with the said subsection (2) shall be made between the employer and the insured person—

(i) on the termination of the employment, that is to say, subject to paragraph (d) of this proviso, on the day on which the employment actually comes to an end, whether the termination is in accordance with the terms of the contract or not and whether or not employment is to be resumed at a later date;

(ii) not later than three calendar months after any contribution week (being a week in respect of which an amount has been recovered by the employer under this subsection) during which the insured person is incapable of work and in respect of which, by virtue of section 8(5) of this Act, no contribution as an employed person was payable;

(iii) at intervals of not more than one year during the employment;

(d) for the purposes of this subsection, an employment in relation to which—

(i) the employer begins, or ceases, to recover amounts in accordance with this subsection; or

(ii) contributions on behalf of the insured person cease to be payable or Become payable at a different rate,

shall be treated as commencing, or terminating, upon that event.

(4) The amount of any contribution not yet paid shall not be recoverable except under and in accordance with subsection (2) or (3) of this section; and if any person contravenes or fails to comply with subsection (2) or paragraph (a) or (c) of the proviso to subsection (3) of this section, he shall for each offence be liable on summary conviction to a fine not exceeding ten pounds or, where the offence consists of continuing such a contravention or failure after conviction thereof, ten pounds together with a further ten pounds for each day on which it is so continued.

(5) Where the insured person does not receive any wages or other pecuniary remuneration from the employer but receives such remuneration from some other person, the amount of any contribution paid by the employer on behalf of the insured person shall (without prejudice to any other means of recovery) be recoverable from the insured person summarily as a civil debt if proceedings for the purpose are instituted within three months from the date on which the contribution was payable.

(6) Where the insured person does not receive any wages or other pecuniary remuneration in respect of an employed contributor's employment either from his employer or from any other person, the employer shall be liable to pay the contributions payable both by himself and the insured person and shall not be entitled to recover any part thereof from the insured person.

(7) Regulations with respect to such recovery as is mentioned in subsection (1) of this section may make provision additional to that made by this section and may vary or revoke any of the provisions of this section other than subsection (6) and so much of subsection (2) as precedes the proviso thereto.

(8) In its application to Scotland, subsection (5) of this section shall have effect as if the word " summarily" were omitted.