The Social Security (Contributions) Regulations 2001

PART 6 U.K. LATE PAID AND UNPAID CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS)

Treatment for the purpose of contributory benefit of unpaid primary Class 1 contributions where no consent, connivance or negligence on the part of the primary contributor U.K.

60.—(1) If a primary Class 1 contribution payable on a primary contributor’s behalf by a secondary contributor is not paid, and the failure to pay that contribution is shown to the satisfaction [F1 of an officer of the Board] not to have been with the consent or connivance of, or attributable to any negligence on the part of the primary contributor, that contribution shall be treated—

(a) for the purpose of the first contribution condition of entitlement to a contribution-based jobseeker’s allowance or short term incapacity benefit as paid on the date on which payment is made of the earnings in respect of which the contribution is payable; and

(b) for any other purpose of entitlement to contributory benefit, as paid on the due date.

(2) In paragraph (1)(a) “the first contribution condition”, in relation to a contribution-based jobseeker’s allowance means the condition specified in section 2(1)(a) of the Jobseeker’s Act 1995F2 .

[F3 (3) Where—

(a) an amount is retrospectively treated as earnings by retrospective contributions regulations, and

(b) the primary Class 1 contribution payable in respect of those earnings is not paid, and the failure to pay that contribution is shown to the satisfaction of an officer of the Board not to have been with the consent or connivance of, or attributable to any negligence on the part of the primary contributor,

that contribution shall be treated in accordance with paragraph (1)(a) and (b).]

Textual Amendments

F1 Words in reg. 60(1) substituted (8.10.2002) by The Social Security (Contributions) (Amendment No. 3) Regulations 2002 (S.I. 2002/2366), regs. 1, 11

F2 1995 c. 18.

F3 Reg. 60(3) added (6.4.2007) by The Social Security Contributions (Consequential Provisions) Regulations 2007 (S.I. 2007/1056), regs. 1, 5

Voluntary Class 2 contributions not paid within permitted period U.K.

[F4 61.— (1) If a person who was entitled, but not liable, to pay a Class 2 contribution (“the contributor”) fails to pay that contribution within the period within which it may be paid, and the condition in paragraph (2) is satisfied, the contribution may be paid within such further period as an officer of the Board may direct.

(2) The condition is that an officer of the Board is satisfied that—

(a) the failure was attributable to the contributor’s ignorance or error; and

(b) that ignorance or error was not the result of the contributor’s failure to exercise due care and diligence.]

Textual Amendments

F4 Reg. 61 substituted (8.10.2002) by The Social Security (Contributions) (Amendment No. 3) Regulations 2002 (S.I. 2002/2366), regs. 1, 12

[F5 Voluntary Class 2 contributions: tax years 1993-94 to 2007-08 U.K.

61A.— (1) This regulation applies to Class 2 contributions which a person (“the contributor”) was entitled, but not liable, to pay in respect of the tax years 1993-94 to 2007-08 (“the relevant years”).

(2) Paragraph (4) applies if the contributor—

(a) was entitled under regulation 147 to pay a Class 2 contribution in respect of any of the relevant years; and

(b) was credited with any earnings—

(i) before 7 October 1996 under regulation 9 of the Social Security (Credits) Regulations 1975 (credits for unemployment or incapacity for work), or

(ii) after 6 October 1996 under regulation 8B of those Regulations (credits for incapacity for work), or

(iii) under regulation 7 of those Regulations (credits for approved training),

and in each case these earnings were removed, on or after 1st July 2007, from the record of contributions paid by, or credited in respect of, that person on the relevant record system because the earnings had been recorded on that system due to an official error in relation to the relevant record system (“the removed earnings”).

(3) In paragraph (2) “an official error in relation to the relevant record system” means an official error—

(a) arising from a failure to transpose information relating to the removed earnings correctly from the Department for Work and Pensions’ Pension Strategy Computer System to Her Majesty’s Revenue and Customs’ National Insurance Recording System 2; or

(b) arising from clerical procedures related to that transposition.

(4) The contributor may pay a Class 2 contribution in respect of any week to which the removed earnings related, provided this payment is made within the time specified in paragraph (5).

(5) The time within which the contribution may be paid is the period beginning with 1st October 2007 and ending on 5th April 2014.

(6) Nothing in this regulation limits the application of regulation 61.]

Textual Amendments

F5 Reg. 61A inserted (1.10.2007) by The Social Security (Contributions) (Amendment No. 8) Regulations 2007 (S.I. 2007/2520), regs. 1, 7

[F6 Voluntary Class 2 contributions: tax years 2006-07 to 2015-16: unavailability of pension statements 2013-14 to 2016-17 U.K.

61B.— (1) This regulation applies to Class 2 contributions which a person (“the contributor”) was entitled, but not liable, to pay in respect of one or more of the tax years 2006-07 to 2015-16 (“the relevant contribution years”).

(2) Paragraph (3) applies if the contributor—

(a) was entitled under regulation 46 or 147(1)(a) to pay a Class 2 contribution in respect of one or more of the relevant contribution years;

(b) had not, before the coming into force of this regulation, paid that contribution; and

(c) will reach pensionable age on or after 6th April [F7 2016].

(3) The contributor may pay a Class 2 contribution under this regulation, in respect of any of the relevant contribution years, within the period specified in paragraph (4).

(4) The period within which the contribution may be paid is the period beginning on 6th April 2013 and ending on 5th April 2023.

(5) Notwithstanding section 12(3) of the Act, the amount of a Class 2 contribution payable under this regulation shall be—

(a) in respect of contribution years 2006-07 to 2010-11, the amount payable in relation to tax year 2012-13; or

(b) in respect of contribution years 2011-12 to 2015-16, the amount payable in the contribution year to which the payment relates.

(6) Paragraph (5) does not apply to a Class 2 contribution paid on or after 6th April 2019.

(7) Nothing in this regulation limits the application of regulations 61 and 61A.]

Textual Amendments

F6 Reg. 61B inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 37

F7 Word in reg. 61B(2)(c) substituted (18.4.2013) by The Social Security (Contributions) (Amendment) Regulations 2013 (S.I. 2013/718), regs. 1, 2(2)

Modifications etc. (not altering text)

C1 Reg. 61B(4) modified (18.4.2013) by The Social Security (Contributions) (Amendment) Regulations 2013 (S.I. 2013/718), regs. 1, 3

Payment of contributions after death of contributor U.K.

62.  If a person dies, any contributions which, immediately before his death he was entitled, but not liable, to pay, may be paid, notwithstanding his death, subject to the same provisions with respect to the time for payment as were applicable to that person.

Class 2 contributions paid late in accordance with a payment undertaking U.K.

63.—(1) This regulation applies to any Class 2 contributions which—

(a) the earner has failed to pay on or by the due date and which, after that date, is payable in accordance with the provisions of an undertaking to pay such a contribution entered into after that date; and

(b) would when paid fall to be computed in accordance with section 12(3) of the Act.

(2) In the case of a contribution to which this regulation applies—

(a) which is paid in accordance with the provisions of an undertaking entered into in the contribution year or the year immediately following that year, the amount of such a contribution shall be computed by reference to the weekly rate applicable in the contribution year;

(b) which is paid in accordance with the provisions of an undertaking entered into in any year other than a year specified in sub-paragraph (a), the amount of such a contribution shall be computed by reference to the highest weekly rate of such a contribution in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which the undertaking was entered into;

(c) which is not paid in accordance with the provisions of the undertaking, the amount of such a contribution shall be computed by reference to the highest weekly rate of such a contribution—

(i) where the contribution is paid in accordance with a further undertaking, in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which the further undertaking was entered into, or

(ii) where the contribution is paid otherwise than in accordance with a further undertaking, in the period beginning with the contribution week in respect of which the contribution is paid and ending with the day on which it is paid.

(3) In this regulation “undertaking” means an arrangement between the Board and an earner under which the Board have agreed to accept payment of arrears of Class 2 contributions by instalments.

[F8 Collection of unpaid Class 2 contributions through PAYE code U.K.

63A.— (1) Where—

(a) the amount of any Class 2 contributions (“relevant debt”) would fall to be computed in accordance with section 12(3) of the Act (late paid Class 2 contributions), and

(b) paragraph (2) applies,

the amount of the relevant debt must be computed in accordance with paragraph (4).

(2) This paragraph applies where—

(a) the code (“the PAYE code”) required by regulation 13 of the PAYE Regulations (determination of code by Inland Revenue) for use by an employer for a year in respect of the person liable to pay the relevant debt is determined in accordance with regulation 14A of the PAYE Regulations (determination of code in respect of recovery of relevant debts) so as to effect recovery of the relevant debt;

(b) the determination of the PAYE code is made assuming the amount of the relevant debt is the amount computed in accordance with paragraph (4); and

(c) the relevant debt is paid in the year in respect of which the PAYE code is determined for use by an employer of the person liable to pay the relevant debt.

(3) For the purpose of determining whether a relevant debt is paid in accordance with paragraph (2)(c), the amount of the relevant debt must be assumed to be the amount computed in accordance with paragraph (4).

(4) The amount referred to in paragraphs (1), (2)(b) and (3) is the highest weekly rate of a Class 2 contribution in the period beginning with the contribution week to which the relevant debt relates and ending with the day the PAYE code mentioned in paragraph (2)(a) is determined.]

Textual Amendments

F8 Reg. 63A inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 38

Class 2 and Class 3 contributions paid within a month from notification of amount of arrears U.K.

64.—(1) This regulation applies to any Class 2 or Class 3 contribution—

(a) which would when paid fall to be computed in accordance with section 12(3) or 13(6) of the Act F9 ; and

(b) the amount of that contribution has been notified to the contributor by the Board in the last month of a year.

(2) Where a contribution to which this regulation applies is paid—

(a) within one calendar month from the date of such notification; and

(b) in the year following that in which the amount was so notified;

the amount of that contribution shall be computed by reference to the weekly rate or, as the case may be, amount of such a contribution calculated in accordance with section 12 or 13 of the Act as if the contribution had been paid on the last day of the year in which the notification was given.

Textual Amendments

F9 Section 12 was amended by paragraph 13 of Schedule 3, and paragraph 3 of Schedule 9, to the Transfer Act. Section 13 was amended by paragraph 14 of Schedule 3 to the Transfer Act and article 4 of S.I. 2001/477.

Class 2 and Class 3 contributions paid late through ignorance or error U.K.

65.—(1) This regulation applies to any Class 2 or Class 3 contribution which would when paid fall to be computed at a rate or, as the case may be, an amount other than that applicable in the contribution year in accordance with section 12(3) or 13(6) of the Act.

(2) Where—

(a) it is shown [F10 to the satisfaction of an officer of the Board] that, by reason of ignorance or error on the part of the earner, not being ignorance or error due to any failure on his part to exercise due care and diligence, he has failed to pay a Class 2 contribution to which this regulation applies for any period on or by the due date; and

(b) payment of that contribution is made in a year later than that in which the period commenced;

the amount of that contribution shall be calculated by reference to the weekly rate at which a contribution paid under section 12 of the Act would have been payable if it had been paid at the time when the period began.

(3) Where a Class 3 contribution would otherwise fall to be calculated in accordance with section 13(6) of the Act, but it is shown [F11 to the satisfaction of an officer of the Board] that the contributor has not paid that contribution before the end of the second year following the contribution year by reason of ignorance or error on the part of the earner, not being ignorance or error due to any failure on his part to exercise due care and diligence, the amount of that contribution shall be computed by reference to the amount of such a contribution applicable to the period for which the contribution is paid.

(4) Where—

(a) a Class 3 contribution would when paid fall to be computed in accordance with section 13(6) of the Act,

(b) such a contribution remains unpaid for a period commencing at any time after the end of the second year following the contribution year (“the relevant period”), and

(c) it is shown [F12 to the satisfaction of an officer of the Board] that the contributor has not, during the relevant period only, paid such a contribution by reason of ignorance or error not being ignorance or error due to any failure on the contributor’s part to exercise due care and diligence,

paragraph (5) applies.

(5) If this paragraph applies to a contribution, the amount of that contribution shall be calculated in accordance with section 13(6) of the Act as if the contribution had been paid at the time when the relevant period commenced.

Textual Amendments

F10 Words in reg. 65(2)(a) substituted (8.10.2002) by The Social Security (Contributions) (Amendment No. 3) Regulations 2002 (S.I. 2002/2366), regs. 1, 13

F11 Words in reg. 65(3) substituted (8.10.2002) by The Social Security (Contributions) (Amendment No. 3) Regulations 2002 (S.I. 2002/2366), regs. 1, 13

F12 Words in reg. 65(4)(c) substituted (8.10.2002) by The Social Security (Contributions) (Amendment No. 3) Regulations 2002 (S.I. 2002/2366), regs. 1, 13

[F13 Amounts of Class 2 and Class 3 contributions in certain cases where earnings removed U.K.

65ZA.— (1) The amount of—

(a) a Class 2 contribution payable by virtue of regulation 61A and paid during the period mentioned in paragraph (5) of that regulation;

(b) a Class 2 contribution that satisfies the conditions in paragraph (2);

(c) a Class 3 contribution payable by virtue of regulation 50B and paid during the period mentioned in paragraph (5) of that regulation,

shall, despite sections 12(3) and 13(6) of the Act, be calculated by reference to the weekly rate which would have been applicable if it had been paid during the contribution year to which it relates.

(2) The conditions mentioned in paragraph (1)(b) are that:

(a) there is a liability to pay the contribution;

(b) earnings were removed in the circumstances described in paragraph (2)(b) of regulation 61A; and

(c) the contribution is paid during the period beginning with 1st October 2007 and ending on 5th April 2014.]

Textual Amendments

F13 Reg. 65ZA inserted (1.10.2007) by The Social Security (Contributions) (Amendment No. 8) Regulations 2007 (S.I. 2007/2520), regs. 1, 8

[F14 Amount of Class 3 contributions payable by virtue of regulation 50A U.K.

65A.   The amount of a contribution payable by virtue of regulation 50A during the period mentioned in paragraph (3) of that regulation shall, notwithstanding section 13(6) of the Act, be calculated by reference to the weekly rate which would have been applicable if it had been paid during the contribution year to which it relates.]

Textual Amendments

F14 Reg. 65A inserted (17.5.2004) by The Social Security (Contributions) (Amendment No. 3) Regulations 2004 (S.I. 2004/1362), regs. 1(1), 5

[F15 Amount of Class 3 contributions payable after issue of a full gender recognition certificate U.K.

65B.   The amount of a contribution payable by virtue of regulation 49(2B) (Class 3 contributions not precluded where gender recognition certificate issued) which is paid in the year in which the full gender recognition certificate is issued or the following year shall, notwithstanding section 13(6) of the Act, be calculated by reference to the weekly rate which would have been applicable if it had been paid during the contribution year to which it relates.]

Textual Amendments

F15 Reg. 65B inserted (6.4.2005) by The Social Security (Contributions) (Amendment No. 3) Regulations 2005 (S.I. 2005/778), regs. 1(1), 7

[F16 Late payment of voluntary Class 2 and 3 contributions for tax year 2005-06 U.K.

65C.— (1) Paragraph (2) applies where a person who will reach pensionable age on or after 6th April 2010—

(a) is entitled, but not liable, to pay a Class 2 or Class 3 contribution in respect of the tax year 2005-06; and

(b) pays the contribution after the end of that year, but not later than 5th April 2012.

(2) Notwithstanding sections 12(3) and 13(6) of the Act, the amount of the contribution shall be calculated by reference to the weekly rate which would have been payable if it had been paid during the tax year 2005-06.]

Textual Amendments

F16 Reg. 65C inserted (6.4.2008) by The Social Security (Contributions) (Amendment No. 2) Regulations 2008 (S.I. 2008/607), regs. 1(3)(b), 3

[F17 Late payment of voluntary Class 2 and 3 contributions for tax year 2006-07 U.K.

65D.— (1) Paragraph (3) applies where a person who meets the conditions in paragraph (2)—

(a) is entitled, but not liable, to pay a Class 2 or Class 3 contribution in respect of the tax year 2006-07; and

(b) pays the contribution after the end of that year, but not later than 5th April 2013.

(2) The conditions are that—

(a) the person will reach pensionable age on or after 6th April 2010; and

(b) the person has been precluded from regular employment by responsibilities at home in any year.

(3) Notwithstanding sections 12(3) and 13(6) of the Act, the amount of the contribution shall be calculated by reference to the weekly rate which would have been payable if it had been paid during the tax year 2006-07.

(4) A person is precluded from regular employment by responsibilities at home in any year if they are taken to be such a person within the meaning of regulations made under paragraph 5(7)(b) of Schedule 3 to the Act.]

Textual Amendments

F17 Reg. 65D inserted (27.12.2008) by The Social Security (Contributions) (Amendment No.6) Regulations 2008 (S.I. 2008/3099), regs. 1, 2(2) (with reg. 2(3)(4))