(1)Contributions received by the [F1Inland Revenue]. . . shall be paid by [F1them] 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)[F2Subsection (1) above is subject to section 16(5)] of the Great Britain Contributions and Benefits Act F3. . ..
[F4(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 [F5Treasury], into the National Insurance Fund.
[F6(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 [F7contributions] 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.]
[F8(4ZA)There shall be paid into the National Insurance Fund so much of any penalty imposed under section 98 of the Taxes Management Act 1970 in a case relating to section 104ZA of this Act (including any penalty imposed by virtue of section 105(4) of this Act) as remains after deduction by the Inland Revenue of the administrative expenses attributable to its recovery.
(4ZB)Subsections (4)(b) and (c) and (4ZA) 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.]
(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 [F9so 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 contributionswere 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;
[F10(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 [F11Inland Revenue] in any manner which the [F11Inland Revenue consider] to be appropriate and which the [F11Treasury] has approved.
[F12(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.]
[F13(7)Whenever the Treasury makes an order under section 162(7) of the Great Britain Administration Act (destination of contributions — national health service allocation), the order may also make corresponding provision for Northern Ireland.]
(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) [F14or (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 [F15Inland Revenue] may estimate to be the portion of the total expenses incurred by [F16them] or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and [F16the remainder shall be paid by the Inland Revenue to the relevant Northern Ireland Department 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 [F17Inland Revenue] into the Consolidated Fund.
F18(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12)The [F16Inland Revenue] may make regulations modifying this section, in such manner as [F16they think] 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
F1Words in s. 142(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(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.)
F2Words in s. 142(2) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(3)(a) (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.)
F3Words in s. 142(2) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 23(4), Sch. 3 para. 45(3)(b), Sch. 9 Pt. I (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.)
F4S. 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
F5Word in s. 142(3) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(4) (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.)
F6S. 142(4) substituted (24.3.1999 for certain purposes, otherwise 1.4.1999) 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.)
F7Word in s. 142(4)(b) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(5) (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.)
F8S. 142(4ZA)(4ZB) inserted (1.4.1999) by S.I. 1999/671, art. 5, Sch. 4 para. 11 (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.)
F9Words in s. 142(5)(a) substituted (retrospective to 1.7.1992) by S.I. 1994/765 (N.I. 4), art. 4(1)(3)
F10S. 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
F11Words in s. 142(6) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(7) (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.)
F12S. 142(6A) inserted (retrospective to 1.7.1992) by S.I. 1994/765 (N.I. 4), art 4(2)(3)
F13S. 142(7) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(8) (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.)
F14Words 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
F15Words in s. 142(9) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(9) (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.)
F16Words in s. 142(12) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(12) (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.)
F17Words in s. 142(10) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(10) (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.)
F18S. 142(11) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 45(11), Sch. 9 Pt. I (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.)