The Social Security (Contributions) Regulations 2001

Return of contributions

52.—(1) Subject to the provisions of regulations 51 and 57 and paragraphs (2) to (7), where there have been paid in error by a person or a secondary contributor (if any) any contributions (other than Class 4 contributions), or there has been any payment of contributions in excess of the amount specified in regulation 21, such contributions shall be returned by the Board to that person or the secondary contributor, as the case may be, if application to that effect is made to the Board either in writing, or in such form and by such means of electronic communications as are approved and, in the case of contributions paid in error, within the time specified in paragraph (6), unless the net amount of the contributions to be returned—

(a) in the case of Class 1A contributions and Class 1B contributions, does not exceed 50 pence; or

(b) in the case of—

(i) Class 1 contributions, or

(ii) Class 2 contributions paid in excess of the amount prescribed in regulation 21,

does not exceed the amount of one fifteenth of a contribution at the primary percentage payable on earnings at the upper earnings limit in respect of primary Class 1 contributions prescribed in regulation 10 for the last or only year in respect of which the contributions were paid.

(2) Nothing in this regulation shall require the return of any primary Class 1 contributions where regulation 3 of the Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996 (purposes for which primary Class 1 contributions paid in error are to be treated as properly paid)(1) applies in relation to those contributions.

(3) Where an application under this regulation has been made for the return of contributions paid in excess of the amount prescribed in regulation 21 and the Board have not been given notice under section 44(1) of the Pensions Act (definition of earner’s chosen scheme)(2), the contributions shall be returned in the following order of priority—

(a) primary Class 1 contributions at the reduced rate;

(b) Class 2 contributions;

(c) primary Class 1 contributions at the primary percentage;

(d) any amount of primary Class 1 contributions reduced in accordance with section 41(1) and (1A) of the Pension Act(3) in respect of COSRS employment as specified in head (i), (ii) or (iii)—

(i) where the amount paid at the contracted-out rate is equal to or exceeds 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal rate in excess of 53 times the amount, calculated at the primary percentage specified in section 8(2) of the Act, payable on earnings at the lower earnings limit for that year and the amount paid at the contracted-out rate if any,

(ii) where the amount paid at the contracted-out rate is less than 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal rate,

(iii) where no amount has been paid at the contracted-out rate, the amount paid at the normal rate;

(e) any amount of primary Class 1 contributions reduced in accordance with section 42A(1) and (2) of the Pensions Act(4) in respect of COMPS employment as specified in head (i), (ii) or (iii)—

(i) where the amount paid at the contracted-out rate is equal to or exceeds 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal rate in excess of 53 times the amount, calculated at the primary percentage specified in section 8(2) of the Act, payable on earnings at the lower earnings limit for that year and the amount paid at the contracted-out rate if any,

(ii) where the amount paid at the contracted-out rate is less than 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal rate,

(iii) where no amount has been paid at the contracted-out rate, the amount paid at the normal rate.

(4) Where an application under this regulation has been made for the return of contributions paid in excess of the amount specified in regulation 21 and the Board have been given notice under section 44(1) of the Pensions Act, the contributions shall be returned in the order of priority specified in paragraph (3), save that the contributions specified in sub-paragraph (c) shall be returned after those specified in sub-paragraphs (d) and (e).

(5) Contributions paid by a secondary contributor on behalf of any person in error or in excess of the amount specified in regulation 21, and not recovered from that person, may be returned to the secondary contributor instead of to that person, but if so recovered may be returned to that person, or, with his consent in writing, to the secondary contributor.

(6) A person desiring to apply for the return of any contribution paid in error shall make the application in such form and in such manner as the Board may from time to time determine, and within the period of six years from the end of the year in which the contribution was paid or, if the Board are satisfied that the person making the application had good cause for not making it within that period, within such longer period as the Board may allow.

(7) In this regulation the word “error” means, and means only, an error which—

(a) is made at the time of the payment; and

(b) relates to some present or past matter.

(1)

S.I. 1996/1245.

(2)

Section 44(1) was amended by section 164(a) of the Pensions Act 1995 (c. 26) and paragraph 48(2) and (3) of Schedule 1 to the Transfer Act.

(3)

Section 41 was amended by section 137(2) of the Pensions Act 1995. Subsection (1) was substituted by paragraph 127 of Schedule 7 to the Social Security Act 1998 (c. 14) and amended by paragraph 6(2) of Part II of Schedule 9 to the Welfare Reform Act. Subsection (1A) was substituted by paragraph 6(3) of Part II of Schedule 9 to the Welfare Reform Act.

(4)

Section 42A was inserted by section 137(5) of the Pensions Act 1995 and subsections (1) and (2) were substituted by paragraph 128 of Schedule 7 to the Social Security Act 1995 and amended by paragraph 7 of Part II of Schedule 9 to the Welfare Reform Act.