Social Security Administration (Northern Ireland) Act 1992

142 Destination of contributions. N.I.

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

(2) F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3 (2A) [F4 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’ 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 [F5 Treasury], 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 [F7 or section 101 of the Finance Act 2009] [F8 , 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 [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 [F11 (4ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 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 [F20 total] earnings in respect of which [F22 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 [F23 general earnings] [F24 and the amounts chargeable to income tax under section 403 of the Income Tax (Earnings and Pensions) Act 2003] 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;

[F27 (ea) in the case of Class 3A 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, [F28 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.]

[F29 (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(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 [F30 subsections (5) and (5A)] above “estimated” means estimated by the [F31 Inland Revenue] in any manner which the [F31 Inland Revenue consider] to be appropriate and which the [F31 Treasury] has approved.

[F32 (6A) In the case of earners paid other than weekly, the reference in subsection (5)(a) above to [F33 the primary threshold or the upper earnings limit] shall be taken as a reference to the equivalent of [F33 that threshold or limit prescribed under section 5(4)] of the Contributions and Benefits Act.]

[F34 (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) [F35 or (ca)];

(c) 4 per cent. of the relevant contributions, in the case of paragraph (d) [F36 , (e) or (ea)] ; 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 [F37 Inland Revenue] may estimate to be the portion of the total expenses incurred by [F38 them] or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and [F38 the 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 [F39 Inland Revenue] into the Consolidated Fund.

F40 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) The [F38 Inland Revenue] may make regulations modifying this section, in such manner as [F38 they 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

F1 Words 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.)

F2 Words in s. 142(1), and s. 142(2) repealed (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 7, Sch. 2 (with effect for 2003-2004 and subsequent tax years)

F3 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

F4 Words in s. 142(2A) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 34(2) (with effect for 2003-2004 and subsequent tax years)

F5 Word 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.)

F6 S. 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.)

F7 Words in s. 142(4)(a) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments), Appointed Days and Consequential Provisions Order 2014 (S.I. 2014/992), arts. 1(1), 6

F8 Words in s. 142(4)(a) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 34(3) (with effect for 2003-2004 and subsequent tax years)

F9 Word 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.)

F10 S. 142(4ZA) repealed (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 4(3)(a), Sch. 2; S.I. 2004/1943, art. 5(a)(iv)

F11 S. 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.)

F12 Words in s. 142(4ZB) substituted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 4(3)(b); S.I. 2004/1943, art. 5(a)(iv)

F13 S. 142(4A) inserted (6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(2); S.R. 1999/102, art. 2(d), Sch. Pt. III

F14 Words in s. 142(4A) 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(3) (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.)

F15 Words in s. 142(4A) substituted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 4(3)(c); S.I. 2004/1943, art. 5(a)(iv)

F16 Words in s. 142(5) inserted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(a) (with effect for 2003-2004 and subsequent tax years)

F17 Word in s. 142(5) substituted (6.4.2011) by National Insurance Contributions Act 2011 (c. 3), ss. 3, 13(1)

F18 Words in s. 142(5)(a) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(b) (with effect for 2003-2004 and subsequent tax years)

F19 Words in s. 142(5)(a) substituted retrospective to 1.7.1992 by S.I. 1994/765 (N.I. 4), art. 4(1)(3)

F20 Words in s. 142(5) substituted (22.12.1999 for certain purposes, otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 9(2); S.I. 1999/3420, art. 2

F21 Words in s. 142(5)(b)(c)(ca) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(c) (with effect for 2003-2004 and subsequent tax years)

F22 Words in s. 142(5)(b) substituted (6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(3); S.R. 1999/72, art. 2(b), Sch.

F23 Words in s. 142(5)(c) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 206(a) (with Sch. 7)

F24 Words in s. 142(5)(c) inserted (6.4.2020 except in relation to termination awards received on or after 6.4.2020 in respect of employment which was terminated before 6.4.2020, or termination awards which are received in instalments where the first instalment of the termination award was received before 6.4.2020) by National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019 (c. 23), ss. 2(11), 5(3); S.I. 2020/285, reg. 2

F25 S. 142(5)(ca) inserted (9.9.1998 for certain purposes, otherwise 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 61(2); S.R. 1998/312, art. 2, Sch. Pt. II

F26 Words in s. 142(5)(ca) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 206(b) (with Sch. 7)

F27 S. 142(5)(ea) inserted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 22(2); S.I. 2015/1670, art. 2(b)

F28 Words in s. 142(5)(f) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(d) (with effect for 2003-2004 and subsequent tax years)

F29 S. 142(5A) inserted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(3) (with effect for 2003-2004 and subsequent tax years)

F30 Words in s. 142(6) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 34(4) (with effect for 2003-2004 and subsequent tax years)

F31 Words 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.)

F32 S. 142(6A) inserted retrospective to 1.7.1992 by S.I. 1994/765 (N.I. 4), art 4(2)(3)

F33 Words in s. 142(6A) substituted (22.12.1999 for certain purposes, otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 9(3); S.I. 1999/3420, art. 2

F34 S. 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.)

F35 Words in s. 142(8)(b) inserted (9.9.1998 for certain purposes, otherwise 6.4.1999) 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

F36 Words in s. 142(8)(c) substituted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 22(3); S.I. 2015/1670, art. 2(b)

F37 Words 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.)

F38 Words 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.)

F39 Words 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.)

F40 S. 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.)

Modifications etc. (not altering text)

C1 S. 142 modified (for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 7(2)(3) (with Sch. 8)

C2 S. 142(5) applied (temp.) (20.10.2021) by Health and Social Care Levy Act 2021 (c. 28), s. 5(6) (with s. 7(2))