PART 2U.K. ASSESSMENT OF EARNINGS RELATED CONTRIBUTIONS

Prescribed equivalentsU.K.

11.—(1) The prescribed equivalents of the lower and upper earnings limits[F1, the primary and secondary thresholds and the upper secondary thresholds], for the purposes of—

(a)sections 6(1), 6A(1), 8(1), [F29(1), 9A(9), and 9B(6)] 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[F3, the calculation of secondary Class 1 contributions, the calculation of secondary Class 1 contributions in relation to the Under 21 age group and the calculation of secondary Class 1 contributions in relation to relevant apprentices] respectively)F4; [F5and]

[F6(aa)section 22 of the Act (earnings factors); F7...]

F7(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

[F8(1A) [F9The 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) [F10Subject to paragraphs (4) and (5), the prescribed equivalents of the lower earnings limit F11... shall be—

(a)where the earnings period is a multiple of a week, the [F12amount] calculated by multiplying the lower earnings limit F13... by the corresponding multiple;]

(b)where the earnings period is a month, the [F12amount] calculated by multiplying [F14the lower earnings limit] by 4 1/3;

(c)where the earnings period is a multiple of a month, the [F12amount] calculated by multiplying [F14the lower earnings limit] by 4 1/3 and multiplying [F15the result] by the corresponding multiple;

(d)in any other case, the [F12amount] calculated by dividing [F14the lower earnings limit] by 7 and multiplying [F15the result] by the number of days in the earnings period concerned.

[F16(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, [F17£4,189;]

(b)where the earnings period is a year, [F18£50,270;]

(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), [F19the prescribed equivalents of the primary threshold] shall be—

(a)where the earnings period is a month, [F20£1,048];

(b)where the earnings period is a year,[F21£12,570];

(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.

[F22(3A) Subject to paragraphs (4) and (5), the prescribed equivalents of the secondary threshold shall be—

(a)where the earnings period is a month, [F23£758];

(b)where the earnings period is a year, [F24£9,100];

(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.]

[F25(3B) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper secondary threshold for secondary Class 1 contributions in relation to the Under 21 age group shall be—

(a)where the earnings period is a month, [F26£4,189;]

(b)where the earnings period is a year, [F27£50,270;]

(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.]

[F28(3C) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper secondary threshold for secondary Class 1 contributions in relation to relevant apprentices shall be—

(a)where the earnings period is a month, [F29£4,189;]

(b)where the earnings period is a year, [F30£50,270;]

(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.]

[F31(4) The amounts determined in accordance with paragraphs (2)(b) and (c), paragraph (2A)(c) and (d)[F32, paragraph (3)(c) and (d)[F33, paragraph (3A)(c) and (d)[F34, paragraph (3B)(c) and (d) and paragraph (3C)(c) and (d)]]] if not whole pounds, shall be rounded up to the next whole pound.]

(5) The amounts determined in accordance with [F35paragraph (2)(d), paragraph (2A)(e)[F36, paragraph (3)(e)[F37, paragraph (3A)(e)[F38, paragraph (3B)(e) and paragraph (3C)(e)]]]] shall be calculated to the nearest penny, and any amount of a halfpenny or less shall be disregarded.

(6) [F39The 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

F4Sections 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.

F10Words 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)