The Social Security (Contributions) Amendment Regulations 1989

Amendment to Regulations

2.—(1) The principal Regulations shall be further amended in accordance with the following provisions of this regulation.

(2) In Regulation 7 (lower and upper earnings limits for Class 1 contributions) –

(a) for “6th April 1988” there shall be substituted “6th April 1989”, and

(b) for “£41” and “£305” there shall be substituted respectively “£43” and “£325”.

(3) In regulation 115(1) (reduction of rate of Class 1 contributions payable in respect of earnings of serving members of the forces) –

(a) in sub-paragraph (a), for “0.8” in each place where it appears there shall be substituted “0.65”;

(b) in sub-paragraph (b), for “0.85” there shall be substituted “0.7”.

(4) In regulation 123D (special provisions as to volunteer development workers) –

(a) immediately before the words “In relation to” there shall be inserted the figure “(1)”:

(b) in paragraph (b) (weekly rate of any Class 2 contributions payable) for “£6.55” there shall be substituted the words “the amount equal to that percentage of the current lower earnings limit obtained by adding together the relevant primary percentage rate and the relevant secondary percentage rate”;

(c) after paragraph (d) there shall be added the following new paragraph –

“(2) In paragraph (1) above –

(a) “relevant primary percentage rate” means the rate which was, at the beginning of the year in which falls the week in respect of which the contribution is paid, the rate specified in section 4(6B) of the Act(1) as the appropriate percentage rate for Bracket 1,

(b) “relevant secondary percentage rate” means the rate which was, at the beginning of the year in which falls the week in respect of which the contribution is paid, the rate specified in section 4(6E) of the Act as the appropriate percentage rate for Bracket 1.”.

(5) In regulation 134 (modification of section 134(4) of the Act) –

(a) for paragraph (a) there shall be substituted the following paragraph –

“(a) in the case of contributions paid at the rate reduced in accordance with regulation 89(1) of these Regulations (modification of section 4(6E) of the Act in relation to mariners) the said subsection (4) shall apply as if, instead of the percentage figure specified in paragraph (b) thereof, there were the percentage figure “0.6”;”;

(b) in paragraph (b), for “regulation 89(1)(a)” there shall be substituted “regulation 89(1)”.

(1)

Section 4(6B) and (6E) was inserted by the Social Security Act 1985, section 7(2).