The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999

Substitution of regulation 8 of the principal Regulations

4.  For regulation 8 of the principal Regulations (equivalent amounts)(1), substitute—

“Equivalent amounts

8.— (1) The equivalent amounts for the purposes of sections 6(1), 8(1) and 9(1) of the Social Security Contributions and Benefits Act 1992 (which provide for liability for Class 1 contributions, the calculation of primary Class 1 contributions and the calculation of secondary Class 1 contributions respectively) and sections 41(1) and 42A(1) of the Pension Schemes Act 1993 (which provide for the calculation of the amount of the reduction of Class 1 contributions in respect of members of a COSRS and a COMPS respectively) shall be determined in accordance with the following provisions of this regulation.

(2) The respective equivalent amounts for the purposes of sections 6(1)(a) and 8(1) of the Social Security Contributions and Benefits Act 1992 and sections 41(1) and 42A(1) of the Pension Schemes Act 1993 shall be—

(a) where the earnings period is a multiple of a week, the amounts calculated by multiplying the weekly lower and upper earnings limits (“the weekly limits”) by the corresponding multiple;

(b) where the earnings period is a month, the amounts calculated by multiplying each of the weekly limits by 4 1/3

(c) where the earnings period is a multiple of a month, the amounts calculated by multiplying each of the weekly limits by 4 1/3 and multiplying each product by the corresponding multiple;

(d) in any other case, the amounts calculated by dividing each of the weekly limits by 7 and multiplying each product by the number of days in the earnings period concerned.

(3) The respective equivalent amount for the purpose of sections 6(1)(b) and 9(1) of the Social Security Contributions and Benefits Act 1992 shall be—

(a) where the earnings period is a multiple of a week, the amount calculated by dividing the annual earnings threshold by 52 and multiplying the product by the corresponding multiple;

(b) where the earnings period is a multiple of a month, the amount calculated by dividing the annual earnings threshold by 12 and multiplying the product by the corresponding multiple;

(c) in any other case, the amount calculated by dividing the annual earnings threshold by 365 and multiplying the product by the number of days in the earnings period concerned,

and for the purposes of this paragraph “annual earnings threshold” means the earnings threshold applicable to an earnings period of a year specified in regulation 7(c)(iii) of these Regulations.

(4) The amounts determined in accordance with—

(a) paragraph (2)(b) and (c);

(b) paragraph (3)(a) and (b),

of this regulation, if not whole pounds, shall be rounded up to the next whole pound.

(5) The calculation prescribed in—

(a) paragraph (2)(d);

(b) paragraph (3)(c),

of this regulation shall be to the nearest £0.01, and any amount of £0.005 or less shall be disregarded.”.

(1)

Regulation 8 was amended by regulation 4 of S.I. 1987/413, regulation 2 of S.I. 1987/2111 and regulation 3(3) of S.I. 1989/1677.