PART 1Secondary Class 1 contributions
Freeports
1Zero-rate contributions for employees at freeport tax sites: Great Britain
1
This section applies where—
a
a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) of the 1992 Act in respect of earnings paid in a tax week in respect of an employed earner’s employment by an employer other than a public authority,
b
the freeport conditions are met in relation to the contribution (see section 2), and
c
the employer (or, if different, the secondary contributor) elects that this section is to apply in relation to the contribution for the purposes of section 9(1) of the 1992 Act instead of section 9(1A) of that Act or section 6 of this Act.
2
For the purposes of section 9(1) of the 1992 Act—
a
the relevant percentage in respect of any earnings paid in the tax week up to or at the upper secondary threshold is 0%, and
b
the relevant percentage in respect of any earnings paid in the tax week above that threshold is the secondary percentage.
3
The upper secondary threshold (or the prescribed equivalent in relation to earners paid otherwise than weekly) is the amount specified in, or in regulations under, section 8.
4
For the purposes of the 1992 Act a person is still to be regarded as being liable to pay a secondary Class 1 contribution even if the amount of the contribution is £0 as a result of this section.
5
The Treasury may by regulations make provision about cases in which this section is to be treated as applying in relation to contributions payable in respect of a tax week in a given tax year only when—
a
that tax year has ended, and
b
all contributions payable in respect of a tax week in that tax year have been paid.