Social Security Administration (Northern Ireland) Act 1992

142 Destination of contributions. N.I.

(1) Contributions received by the Department F1 . . . shall be paid by it into the National Insurance Fund after deducting from contributions of any class, the appropriate health service allocation in the case of contributions of that class.

(2) The contributions referred to in subsection (1) above include those paid over to the Department by the Secretary of State under section 16(5) of the Great Britain Contributions and Benefits Act and by the Inland Revenue under paragraph 6(8) of Schedule 1 to the Contributions and Benefits Act.

[F2 (2A) References in subsections (1) and (2) above to contributions include references to 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’ 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 Department of Finance and Personnel, into the National Insurance Fund.

[F3 (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 or 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 the Department 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.]

(5) In subsection (1) above “the appropriate health service allocation” means—

(a) in the case of primary Class 1 contributions, 1.05 per cent. of the amount estimated to be that of [F4 so much of the earnings in respect of which those contributions were paid as exceeded the lower earnings limit but did not exceed the upper earnings limit];

(b) in the case of secondary Class 1 contributions, 0.9 per cent. of the amount estimated to be that of the earnings in respect of which those contributions were paid;

(c) in the case of Class 1A contributions, 0.9 per cent. of the amount estimated to be the aggregate of the cash equivalents of the benefits of the cars and car fuel used in calculating those contributions;

[F5 (ca) in the case of Class 1B contributions, 0.9 per cent. of the amount estimated to be the aggregate of the emoluments 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, 1.15 per cent. of the amount estimated to be that of the earnings in respect of which those contributions were paid.

(6) In subsection (5) above “estimated” means estimated by the Department in any manner which the Department considers to be appropriate and which the Department of Finance and Personnel has approved.

[F6 (6A) In the case of earners paid other than weekly, the reference in subsection (5)(a) above to the lower or upper earnings limit shall be taken as a reference to the equivalent of that limit prescribed under section 8(3) of the Contributions and Benefits Act.]

(7) The Department may by order amend any of paragraphs (a) to (e) 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 subsection (7) above shall substitute a figure which represents an increase or decrease in the appropriate 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) [F7 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 health service allocation in respect of contributions of any class there shall be deducted such amount as the Department may estimate to be the portion of the total expenses incurred by it or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and the remainder shall, in the hands of the Department, be taken as paid towards the cost of the health service in Northern Ireland.

(10) Any amounts deducted in accordance with subsection (9) above shall be paid by the Department into the Consolidated Fund.

(11) Any estimate by the Department for the purposes of subsection (9) above shall be made in accordance with any directions given by the Department of Finance and Personnel.

(12) The Department may make regulations modifying this section, in such manner as it thinks appropriate, in relation to the contributions of persons referred to in the following provisions of the Contributions and Benefits Act—

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

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

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

Textual Amendments

F1 Words in s. 142(1) repealed (1.7.1997) by 1997 c. 47, s. 22, Sch. 2; S.I. 1997/1577, art. 2, Sch.

F2 S. 142(2A) inserted (9.9.1998) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(1); S.R. 1998/312, art. 2(a), Sch. Pt. I

F3 S. 142(4) substituted (24.3.1999 for certain purposes, otherwiseprosp.) by S.I. 1999/671, arts. 1(2), 3(1), Sch. 1 para. 31(2) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F4 Words in s. 142(5)(a) substituted (retrospective to 1.7.1992) by S.I. 1994/765 (N.I. 4), art. 4(1)(3)

F5 S. 142(5)(ca) inserted (9.9.1998 for certain purposes, otherwiseprosp.) by S.I. 1998/1506 (N.I. 10), art. 61(2); S.R. 1998/312, art. 2, Sch. Pt. II

F6 S. 142(6A) inserted (retrospective to 1.7.1992) by S.I. 1994/765 (N.I. 4), art 4(2)(3)

F7 Words in s. 142(8)(b) inserted (9.9.1998 for certain purposes, otherwiseprosp.) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(4); S.R. 1998/312, art. 2, Sch. Pt. II