8 Calculation of primary Class 1 contributions

1

Where a primary Class 1 contribution is payable as mentioned in section 6(1)(a) above, the amount of that contribution is the aggregate of—

a

the main primary percentage of so much of the earner’s earnings paid in the tax week, in respect of the employment in question, as—

i

exceeds the current primary threshold (or the prescribed equivalent); but

ii

does not exceed the current upper earnings limit (or the prescribed equivalent); and

b

the additional primary percentage of so much of those earnings as exceeds the current upper earnings limit (or the prescribed equivalent).

2

For the purposes of this Act—

a

the main primary percentage is 11 per cent; and

b

the additional primary percentage is 1 per cent;

but the main primary percentage is subject to alteration under sections 143 and 145 of the Administration Act.

3

Subsection (1) above is subject to—

a

regulations under section 6(6) above;

b

regulations under sections 116 to 120 below; and

c

sections 41 and 42A of the Pensions Act (reduced rates of Class 1 contributions for earners in contracted-out employment).

8 Calculation of primary Class 1 contributions

1

Where a primary Class 1 contribution is payable as mentioned in section 6(1)(a) above, the amount of that contribution is the aggregate of—

a

the main primary percentage of so much of the earner’s earnings paid in the tax week, in respect of the employment in question, as—

i

exceeds the current primary threshold (or the prescribed equivalent); but

ii

does not exceed the current upper earnings limit (or the prescribed equivalent); and

b

the additional primary percentage of so much of those earnings as exceeds the current upper earnings limit (or the prescribed equivalent).

2

For the purposes of this Act—

a

the main primary percentage is 11 per cent; and

b

the additional primary percentage is 1 per cent;

but the main primary percentage is subject to alteration under section 129 of the Administration Act.

3

Subsection (1) above is subject to—

a

regulations under section 6(6) above;

b

regulations under sections 116 to 119 below; and

c

sections 37 and 38A of the Pensions Act (reduced rates of Class 1 contributions for earners in contracted-out employment).