Part XI Finance

142 Destination of contributions.

1

Contributions received by the F1Inland Revenue. . . shall be paid by F1them into the National Insurance Fund after deducting F2. . . the appropriate health service allocation F2. . . .

2

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F32A

F4The 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’ 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.

F64

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 F7, or from persons in Northern Ireland by virtue of paragraph 6 of Schedule 2 to the Great Britain Contributions and Benefits Act (the text of which is set out as Schedule 2 to the Contributions and Benefits Act), as remains after the deduction by them of any administrative costs attributable to its recovery,

b

the amounts apportioned to F8contributions 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.

F33F94ZA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4ZB

F34Subsection (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.

F104A

The sums recovered by the F11Inland Revenue under regulations made under paragraph 7A F35, 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 health service allocation” means F12100 per cent of the product of the additional rate together with—

a

in the case of primary Class 1 contributions, F132.05 per cent. of the amount estimated to be that of F14so much of the earnings in respect of which those contributions were paid as exceeded F15the primary threshold but did not exceed the upper earnings limit;

b

in the case of secondary Class 1 contributions, F161.9 per cent. of the amount estimated to be that of the F15total earnings in respect of which F17primary Class 1 contributions were paid;

c

in the case of Class 1A contributions, F161.9 per cent. of the amount estimated to be the aggregate of the F31general earnings used in calculating those contributions;

F18ca

in the case of Class 1B contributions, F161.9 per cent. of the amount estimated to be the aggregate of the F32general 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, F192.15 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.

F205A

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(1)(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 F21subsections (5) and (5A) above “estimated” means estimated by the F22Inland Revenue in any manner which the F22Inland Revenue consider to be appropriate and which the F22Treasury has approved.

F236A

In the case of earners paid other than weekly, the reference in subsection (5)(a) above to F24the primary threshold or the upper earnings limit shall be taken as a reference to the equivalent of F24that threshold or limit prescribed under section 5(4) of the Contributions and Benefits Act.

F257

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) F26or (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 F27Inland Revenue may estimate to be the portion of the total expenses incurred by F28them or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and F28the 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 F29Inland Revenue into the Consolidated Fund.

F3011

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12

The F28Inland Revenue may make regulations modifying this section, in such manner as F28they 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.