Social Security Administration Act 1992

162 Destination of contributions U.K.

(1) Contributions received by the [F1 Inland Revenue]F2 ... shall be paid by [F1 them] into the National Insurance Fund after deducting F3 ... the appropriate national health service allocation F3 ... .

F4 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F5 (2A) [F6 The reference to contributions in subsection (1) above includes] payments on account of contributions made in accordance with regulations under section 3(5) of the Contributions and Benefits Act (Payments on account of directors's contributions.)]

(3) The additions paid under section 1(5) of the Contributions and Benefits Act shall be paid, in accordance with any directions given by the Treasury, into the National Insurance Fund.

[F7 (4) There shall be paid into the National Insurance Fund—

(a) so much of any interest recovered by the Inland Revenue by virtue of paragraph 6 of Schedule 1 to the Contributions and Benefits Act [F8 , or from persons in Great Britain by virtue of paragraph 6 of Schedule 2 to that Act, ] as remains after the deduction by them of any administrative costs attributable to its recovery,

(b) the amounts apportioned to [F9 contributions] under sub-paragraph (6) of Paragraph 7 of Schedule 1 to the Contributions and Benefits Act in respect of the penalties mentioned in that sub-paragraph, and

(c) so much of any penalty otherwise imposed by virtue of that paragraph and recovered by the Inland Revenue as remains after the deduction by them of any administrative costs attributable to its recovery.]

F10 (4ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F11 (4ZB) [F12 Subsection (4)(b) and (c)] above shall have effect notwithstanding any provision which treats a penalty under section 98 or 98A of the Taxes Management Act 1970 as if it were tax charged in an assessment and due and payable.]

[F13 (4A) The sums recovered by the [F14 Inland Revenue] under regulations made under paragraph 7A[F15 , 7B or 7BZA] of Schedule 1 to the Contributions and Benefits Act in respect of interest or penalties shall be paid into the National Insurance Fund.]

(5) In subsection (1) above “the appropriate national health service allocation” means [F16 [F17 50] per cent of the product of the additional rate together with] —

(a) in the case of primary Class 1 contributions, [F18 2.05] per cent. of the amount estimated to be that of [F19 so much of the earnings in respect of which those contributions were paid as exceeded [F20 the primary threshold] but did not exceed the upper earnings limit;]

(b) in the case of secondary Class 1 contributions, [F21 1.9] per cent. of the amount estimated to be that of the [F22 total] earnings in respect of which [F23 primary Class 1 contributions] were paid;

(c) in the case of Class 1A contributions, [F21 1.9] per cent. of the amount estimated to be the aggregate of the [F24 general earnings] used in calculating those contributions;

[F25 (ca) in the case of Class 1B contributions, [F21 1.9] per cent of the amount estimated to be the aggregate of the [F26 general earnings] and the amounts of income tax in respect of which those contributions were paid;]

(d) in the case of Class 2 contributions, 15.5 per cent. of the amount estimated to be the total of those contributions;

(e) in the case of Class 3 contributions, 15.5 per cent. of the amount estimated to be the total of those contributions; and

(f) in the case of Class 4 contributions, [F27 2.15 per cent of the amount estimated to be that of so much of the profits or gains, or earnings, in respect of which those contributions were paid as exceeded the lower limit specified in paragraph (a) of subsection (3) of section 15, and in paragraph (a) of subsection (1A) of section 18, of the Contributions and Benefits Act but did not exceed the upper limit specified in those subsections.]

[F28 (5A) In subsection (5) above “the product of the additional rate” means the amount estimated to be the aggregate of—

(a) so much of the total of primary Class 1 contributions as is attributable to section 8(l)(b) of the Contributions and Benefits Act (additional primary percentage);

(b) so much of the total of Class 4 contributions under section 15 of that Act as is attributable to subsection (3)(b) of that section (additional Class 4 percentage); and

(c) so much of the total of Class 4 contributions payable by virtue of section 18 of that Act as is attributable to subsection (1A)(B) of that section (additional Class 4 percentage).]

(6) In [F29 subsections (5) and (5A)] above “estimated” means estimated by the [F30 Inland Revenue] in any manner which after consulting the Government Actuary or the Deputy Government Actuary [F30 the Inland Revenue consider] to be appropriate and which the Treasury has approved.

[F31 (6A) In the case of earners paid other than weekly, the reference in paragraph (a) of subsection (5) above to [F32 the primary threshold or the upper earnings limit] shall be taken as a reference to the equivalent of [F32 that threshold or limit prescribed under section 5(4)] of the Contributions and Benefits Act.]

(7) [F33 The Treasury may] by order amend any of paragraphs (a) to (f) of subsection (5) above in relation to any tax year, by substituting for the percentage for the time being specified in that paragraph a different percentage.

(8) No order under section (7) above shall substitute a figure which represents an increase or decrease in the appropriate national health service allocation of more than—

(a) 0.1 per cent. of the relevant earnings, in the case of paragraph (a) or (b);

(b) 0.1 per cent. of the relevant aggregate, in the case of paragraph (c) [F34 or (ca)];

(c) 4 per cent. of the relevant contributions, in the case of paragraph (d) or (e); or

(d) 0.2 per cent. of the relevant earnings, in the case of paragraph (f).

(9) From the national health service allocation in respect of contributions of any class there shall be deducted such amount as the [F35 Inland Revenue] may estimate to be the portion of the total expenses incurred by [F36 them] or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and [F37 the remainder shall be paid the Inland Revenue to the Secretary of State towards] the cost—

(a) of the national health service in England;

(b) of that service in Wales; and

(c) of that service in Scotland,

in such shares as the Treasury may determine.

(10) The [F38 Inland Revenue] shall pay any amounts deducted in accordance with subsection (9) above into the Consolidated Fund.

F39 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) The [F40 Inland Revenue] may make regulations modifying this section, in such manner as [F41 they think] appropriate, in relation to the contributions of persons referred to in the following sections of the Contributions and Benefits Act—

(a) section 116(2) (H.M. forces);

(b) section 117(1) (mariners, airmen, etc.);

(c) section 120(1) (continental shelf workers),

and in relation to any contributions which are reduced under section 6(5) of that Act.

Textual Amendments

F1 Words in s. 162(1) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(2); S.I. 1999/527, art. 2(b), Sch. 2

F2 Words in s. 162(1) repealed (1.7.1997) by Social Security Administration (Fraud) Act 1997 (c. 47), s. 25(1), Sch. 2; S.I. 1997/1577, art. 2, Sch.

F3 Words in s. 162(1) repealed (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 2

F4 S. 162(2) repealed (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 2

F5 S. 162(2A) inserted (8.9.1998) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 99(1); S.I. 1998/2209, art. 2(a), Sch. Pt. 1

F6 Words in s. 162(2A) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 19(2)

F7 S. 162(4) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 28(2); S.I. 1999/527, art. 2(b), Sch. 2

F8 Words in s. 162(4)(a) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 19(3)

F9 Word in s. 162(4)(b) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(4); S.I. 1999/527, art. 2(b), Sch. 2

F10 S. 162(4ZA) repealed (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 3(3)(a), Sch. 2; S.I. 2004/1943, art. 5(a)(iii)

F11 S. 162(4ZA)(4ZB) inserted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 5 para. 12; S.I. 1999/527, art. 2(b), Sch. 2

F12 Words in s. 162(4ZB) substituted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 3(3)(b); S.I. 2004/1943, art. 5(a)(iii)

F13 S.s. 162(4A) inserted (6.4.1999) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 99(2); S.I. 1999/526, art. 2

F14 Words in s. 162(4A) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 28(3); S.I. 1999/527, art. 2(b), Sch. 2

F15 Words in s. 162(4A) substituted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 3(3)(c); S.I. 2004/1943, art. 5(a)(iii)

F16 Words in s. 162(5) inserted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 4(2)(a), 8(2)

F17 Figure in s. 162(5) substituted (6.4.2011) by National Insurance Contributions Act 2011 (c. 3), ss. 3, 13(1)

F18 Figure in s. 162(5)(a) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 4(2)(b), 8(2)

F19 Words in s. 162(5)(a) substituted (with retrospective effect from 1.7.1992) by Social Security (Contributions) Act 1994 (c. 1), s. 2(1) (with s. 2(3))

F20 Words in s. 162(5)(a) substituted (22.12.1999 for specified purposes, 6.4.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(3)(a), Sch. 9 para. 9(2)(a); S.I. 1999/3420, art. 2

F21 Figure in s. 162(5)(b)(c)(ca) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 4(2)(c), 8(2)

F22 Word in s. 162(5)(b) inserted (22.12.1999 for specified purposes, 6.4.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(3)(a), Sch. 9 para. 9(2)(b); S.I. 1999/3420, art. 2

F23 Words in s. 162(5)(b) substituted (6.4.1999) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 99(3); S.I. 1999/418, art. 2

F24 Words in s. 162(5)(c) substituted (6.4.2003) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 189(2) (with Sch. 7)

F25 S. 162(5)(ca) inserted (8.9.1998 for specified purposes, 6.4.1999 in so far as not already in force) by Social Security Act 1998 (c. 14), ss 65(2), 87(2); S.I. 1998/2209, art. 2, Sch. Pts. II, III

F26 Words in s. 162(5)(ca) substituted (6.4.2003) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 189(3) (with Sch. 7)

F27 Words in s. 162(5)(f) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 4(2)(d), 8(2)

F28 S. 162(5A) inserted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 4(3), 8(2)

F29 Words in s. 162(6) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 19(4)

F30 Words in s. 162(6) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(6); S.I. 1999/527, art. 2(b), Sch. 2

F31 S. 162(6A) inserted (with retrospective effect from 1.7.1992) by Social Security (Contributions) Act 1994 (c. 1), s. 2(2) (with s. 2(3))

F32 Words in s. 162(6A) substituted (22.12.1999 for specified purposes, 6.4.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(3)(a), Sch. 9 para. 9(3); S.I. 1999/3420, art. 2

F33 Words in s. 162(7) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(7); S.I. 1999/527, art. 2(b), Sch. 2

F34 Words in s. 162(8)(b) inserted (8.9.1998 for specified purposes, 6.4.1999 in so far as not already in force) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 99(4); S.I. 1998/2209, art. 2, Sch. Pts. II, III

F35 Words in s. 162(9) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(8)(a); S.I. 1999/527, art. 2(b), Sch. 2

F36 Word in s. 162(9) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(8)(b); S.I. 1999/527, art. 2(b), Sch. 2

F37 Words in s. 162(9) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(8)(c); S.I. 1999/527, art. 2(b), Sch. 2

F38 Words in s. 162(10) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(9); S.I. 1999/527, art. 2(b), Sch. 2

F39 S. 162(11) repealed (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(10), Sch. 10 Pt. I; S.I. 1999/527, art. 2(b), Sch. 2

F40 Words in s. 162(12) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(11)(a); S.I. 1999/527, art. 2(b), Sch. 2

F41 Words in s. 162(12) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 52(11)(b); S.I. 1999/527, art. 2(b), Sch. 2