The Social Security (Contributions) Regulations 2001

Changes over time for: Section 11

Version Superseded: 06/04/2015

Status:

Point in time view as at 05/12/2014. This version of this provision has been superseded.

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Prescribed equivalentsU.K.

11.—(1) The prescribed equivalents of the lower and upper earnings limits and the primary and secondary thresholds, for the purposes of—

(a)sections 6(1), 6A(1), 8(1), and 9(1) of the Act (which provide liability for Class 1 contributions, notional payment of primary Class 1 contribution where earnings are not less than the lower earnings limit, the calculation of primary Class 1 contributions and the calculation of secondary Class 1 contributions respectively)F1; F2...

[F3(aa)section 22 of the Act (earnings factors); and]

[F4(b)sections 41(1) (reduced rates of Class 1 contributions), 42A(1) (reduced rates of Class 1 contributions and rebates) and 45(1) (amount of minimum contributions) of the Pensions Act,]

shall be determined in accordance with paragraphs (2) to (5).

[F5(1A) The prescribed equivalents of the upper accrual point for the purposes of—

(a)section 22 of the Act (earnings factors); and

(b)sections 41(1) (reduced rates of Class 1 contributions), 42A(1) (reduced rates of Class 1 contributions and rebates) and 45(1) (amount of minimum contributions) of the Pensions Act,

shall be determined in accordance with paragraphs (2), (4) and (5).]

(2) [F6Subject to paragraphs (4) and (5), the prescribed equivalents of the lower earnings limit and the upper accrual point shall be—

(a)where the earnings period is a multiple of a week, the amounts calculated by multiplying the lower earnings limit or the upper accrual point (“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 result by the corresponding multiple;

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

[F7(2A) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper earnings limit shall be—

(a)where the earnings period is a month, [F8£3,489;]

(b)where the earnings period is a year, [F9£41,865;]

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.]

(3) Subject to paragraphs (4) and (5), [F10the prescribed equivalents of the primary threshold] shall be—

(a)where the earnings period is a month, [F11£663;]

(b)where the earnings period is a year, [F12£7,956;]

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.

[F13(3A) Subject to paragraphs (4) and (5), the prescribed equivalents of the secondary threshold shall be—

(a)where the earnings period is a month, [F14£663;]

(b)where the earnings period is a year, [F15£7,956;]

(c)where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;

(d)where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;

(e)in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.]

[F16(4) The amounts determined in accordance with paragraphs (2)(b) and (c), paragraph (2A)(c) and (d)[F17, paragraph (3)(c) and (d) and paragraph (3A)(c) and (d)] if not whole pounds, shall be rounded up to the next whole pound.]

(5) The amounts determined in accordance with [F18paragraph (2)(d), paragraph (2A)(e)[F19, paragraph (3)(e) and paragraph (3A)(e)]] shall be calculated to the nearest penny, and any amount of a halfpenny or less shall be disregarded.

[F20(6) The following provisions of this regulation do not apply to Northern Ireland—

(a)paragraph (1A), and

(b)both references to “the upper accrual point” in paragraph (2), so that the term “the weekly limits” shall be read as referring only to the lower earnings limit in relation to Northern Ireland.]

Textual Amendments

F1Sections 6, 8 and 9 were substituted, and section 6A inserted, by paragraphs 2 to 5 of Part I of Schedule 9 to the Welfare Reform Act.

F2Word in reg. 11(1)(a) omitted (6.4.2009) by virtue of The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(2)(a)

F3Reg. 11(1)(aa) inserted (6.4.2009) by The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(2)(b)

F4Reg. 11(1)(b) substituted (6.4.2009) by The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(2)(c)

F5Reg. 11(1A) inserted (6.4.2009) by The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(3)

F6Words in reg. 11(2) & reg. 11(2)(a) substituted (6.4.2009) by The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(4)

F7Reg. 11(2A) inserted (6.4.2009) by The Social Security (Contributions) (Amendment) Regulations 2009 (S.I. 2009/111), regs. 1, 3(5)

F8Sum in Reg. 11(2A)(a) substituted (6.4.2014) by The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2014 (S.I. 2014/569), regs. 1, 4(a)(i)

F9Sum in Reg. 11(2A)(b) substituted (6.4.2014) by The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2014 (S.I. 2014/569), regs. 1, 4(a)(ii)

F10Words in reg. 11(3) substituted (6.4.2011) by The Social Security (Contributions) (Amendment No. 2) Regulations 2011 (S.I. 2011/940), regs. 1(2), 4(3)(a)

F11Sum in Reg. 11(3)(a) substituted (6.4.2014) by The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2014 (S.I. 2014/569), regs. 1, 4(b)(i)