SCHEDULES

SCHEDULE 5 Transitional Provisions and Savings

Part II Specific Provisions

Contributions equivalent premiums: earnings before 1987-88

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(1)

Where an earner’s earnings paid in any period before the tax year 1987-88—

(a)

exceeded the lower earnings limit; but

(b)

were not such that primary Class 1 contributions within Bracket 3 fell to be paid in respect of them,

it shall be assumed for the purposes of sections 54(4) and 57(2) that his earnings paid in that period were such that, taking the rate specified in Bracket 3 as the appropriate rate, the same amount of primary Class 1 contributions fell to be paid in respect of them as in fact fell to be paid in respect of them; and in this paragraph “Bracket 3” has the meaning given in section 9(3) of the M1Social Security Contributions and Benefits (Northern Ireland) Act 1992.

(2)

Section 59(3) applies for the purposes of sub-paragraph (1), in so far as it applies as respects section 54(4), as if the reference in paragraph (b) of section 59(3) to earnings included a reference to earnings relevant for any purpose of that sub-paragraph.

(3)

Where F1Inland Revenue have acted in pursuance of section 59(3) as applied by sub-paragraph (2) and F2they subsequently ascertain the amount of those earnings—

(a)

if F3they appears to the F4Inland Revenue that the amount of the contributions equivalent premium would have been less if the F4Inland Revenue had not made the calculation on the basis described in sub-paragraph (1), F3they shall refund the difference to the prescribed person, and

(b)

if it appears to F4Inland Revenue that that premium would have been greater if F3they had not done so, the prescribed person shall pay the difference to F5them.

F6(4)

In this paragraph “prescribed” means prescribed by regulations made by the Secretary of State.