C1Part I Contributions

Annotations:
Modifications etc. (not altering text)
C1

Pt. I (ss. 1-19): power to modify conferred (7.2.1994) by 1993 c. 49, s. 35, Sch. 1 Pt. I para. 5(3)(d); S.R. 1994/17, art. 2

Pt. I (ss. 1-19) amended (1.4.1999) by 1999 c. 2, s. 3(1)(7); S.I. 1999/527, art. 2(b), Sch. 2

F1Class 1B contributions

Annotations:
Amendments (Textual)
F1

S. 10A and preceding cross-heading inserted (9.9.1998 for the purpose only of making regulations or orders and otherwise 6.4.1999) by The Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)), art. 50; S.R. 1998/312, art. 2(b), Sch. Pt. II

10A Class 1B contributions.

1

Where for any tax year a person is accountable to the Inland Revenue in respect of income tax on F5general earnings of his employees in accordance with a PAYE settlement agreement, a Class 1B contribution shall be payable by him for that tax year in accordance with this section.

2

The Class 1B contribution referred to in subsection (1) above is payable in respect of—

a

the amount of any of F6the general earnings included in the PAYE settlement agreement which are chargeable emoluments; and

b

the total amount of income tax in respect of which the person is accountable for the tax year in accordance with the PAYE settlement agreement.

3

The amount of the Class 1B contribution referred to in subsection (1) above shall be the Class 1B percentage of the aggregate of the amounts mentioned in paragraphs (a) and (b) of subsection (2) above.

4

F7General earnings are chargeable emoluments for the purposes of subsection (2) above if, apart from section F96(2) or 10(6) above, the person accountable in accordance with the PAYE settlement agreement would be liable or entitled to pay secondary Class 1 contributions or Class 1A contributions in respect of them.

5

Where—

a

the PAYE settlement agreement was entered into after the beginning of the tax year; and

b

Class 1 contributions were due in respect of any F8general earnings before it was entered into,

those F8general earnings shall not be taken to be included in the PAYE settlement agreement.

F26

In subsection (3) above “the Class 1B percentage” means a percentage rate equal to F3the secondary percentage for the tax year in question.

7

F4The Treasury may by regulations provide for persons to be excepted in prescribed circumstances from liability to pay Class 1B contributions.