The Social Security (Contributions) Regulations 2001

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There are currently no known outstanding effects for the The Social Security (Contributions) Regulations 2001, Section 100.

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Annual maximum of Class 4 contributions due under section 15 of the ActU.K.

[F1100.—(1) If, in respect of any year, there are payable by or in respect of an earner Class 4 contributions under section 15 of the Act and also—

(a)primary Class 1 contributions F2...

F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

paragraph (2) applies.

(2) If this paragraph applies, the earner’s liability for Class 4 contributions shall not exceed the maximum found in accordance with paragraph (3).

(3) The maximum is found as follows.

Step One
Subtract the lower profits limit from the upper profits limit for the year.
Step Two
Multiply the result of Step One by [F46% ].
F5...
Step Four
Subtract from the result of [F6Step Two] the aggregate amount of F7... primary Class 1 contributions paid at the main primary percentage.
The application of the following steps is determined by reference to the following three Cases.
- Case 1
  If the result of this step is a positive value, and exceeds the aggregate of—
  (a)
  primary Class 1 contributions payable at the main primary percentage,
  (b)
  F8...
  (c)
  Class 4 contributions payable at the main Class 4 percentage,
  in respect of the earner’s earnings, profits and gains for the year, the result of this step is the maximum amount of Class 4 contributions payable.
- Case 2
  If the result of this step is a positive value, but does not exceed the aggregate mentioned in Case 1, the result of this step is the maximum amount of Class 4 contributions payable at the main Class 4 percentage.
- Case 3
  If the result of this step is a negative value, the maximum amount of a Class 4 contribution payable at the main Class 4 percentage is nil and the result of this step is treated as nil.
  If Case 1 applies, Steps Five to Nine do not, but if Case 2 or Case 3 applies those Steps do apply.
Step Five
Multiply the result of Step Four by [F9100/6 ]
Step Six
Subtract the lower profits limit from the lesser of the upper profits limit and the amount of profits for the year.
Step Seven
Subtract the result of Step Five from the result of Step Six.
If the result of this step is a negative value, it is treated as nil.
Step Eight
Multiply the result of Step Seven by [F102 per cent].
Step Nine
Multiply the amount by which the profits and gains for the year exceed the upper profits limit for the year by [F112 per cent].
The maximum amount of Class 4 contributions payable is—
(a)
where Case 1 of Step Four applies, the result of that step, and
(b)
where Case 2 or Case 3 of Step Four applies, the amount produced by adding together the results of Steps Four, Eight and Nine.
This is subject to the qualifications in paragraphs (4) to (6).
In this paragraph—
“lower profits limit” means the lesser of the two monetary sums specified in section 15(3)(a) of the Act; and
“upper profits limit” means the greater of those sums.

(4) [F12For the purpose only of determining the extent of the earner’s liability for contributions under paragraph (3), the amount of a primary Class 1 contribution which would otherwise be payable at the main primary percentage but which is paid at a rate less than [F13the rate specified as the main primary percentage] because the earner is a married woman who has made an election to pay contributions at the reduced rate as mentioned in regulation 127, shall be treated as equal to the amount of the primary Class 1 contribution payable at the main primary percentage, which would be so payable if the election had not been made.]

F14(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Notwithstanding paragraphs (1) to [F15(4)], an earner shall be liable, in the first instance, for the full amount of the contributions which would have been payable but for this regulation.]

Textual Amendments

F1Reg. 100 substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2003 (S.I. 2003/193), regs. 1(1), 14

F2Words in reg. 100(1)(a) omitted (6.4.2024) by virtue of The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 6(5)(a)(i) (with reg. 1(4))

F3Reg. 100(1)(b) omitted (6.4.2024) by virtue of The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 6(5)(a)(ii) (with reg. 1(4))

F4Word in reg. 100(3) substituted (6.4.2024 immediately before 2024 c. 5 comes into force) by National Insurance Contributions (Reduction in Rates) Act 2024 (c. 5), ss. 2(1)(3)(a), 3(1)

F5Words in reg. 100(3) omitted (6.4.2024) by virtue of The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 6(5)(b)(i) (with reg. 1(4))

F6Words in reg. 100(3) substituted (6.4.2024) by The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 6(5)(b)(ii) (with reg. 1(4))

F7Words in reg. 100(3) omitted (6.4.2024) by virtue of The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 6(5)(b)(ii) (with reg. 1(4))

F8Words in reg. 100(3) omitted (6.4.2024) by virtue of The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 6(5)(b)(iii) (with reg. 1(4))

F9Word in reg. 100(3) substituted (6.4.2024 immediately before 2024 c. 5 comes into force) by National Insurance Contributions (Reduction in Rates) Act 2024 (c. 5), ss. 2(1)(3)(b), 3(1)

F10Words in reg. 100(3) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(3)(a)(iii)

F11Words in reg. 100(3) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment) Regulations 2012 (S.I. 2012/573), regs. 1(1), 2(3)(a)(vi)