2001 No. 769
The Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001
Made
Laid before Parliament
Coming into force
The Secretary of State for Social Security, with the concurrence of the Inland Revenue in so far as required, in exercise of powers conferred by sections 13(3), 22(5), 122(1) and 175(1) to (4) of, and paragraphs 8(1)(d) and (1A) and 10 of Schedule 1 to, the Social Security Contributions and Benefits Act 19921 and sections 182C and 189(1) and (3) to (6) of the Social Security Administration Act 19922 and of all other powers enabling him in that behalf and for the purpose only of consolidating other regulations hereby revoked3, hereby makes the following Regulations:
Citation, commencement and interpretation1
1
These Regulations may be cited as the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 and shall come into force on 6th April 2001.
2
In these Regulations, including this regulation—
“the Act” means the Social Security Contributions and Benefits Act 1992;
“the Contributions Regulations” means the Social Security (Contributions) Regulations 19794;
“contribution week” means a period of seven days beginning with midnight between Saturday and Sunday;
“contribution-based jobseeker’s allowance” and “income-based jobseeker’s allowance” have the same meaning as in the Jobseekers Act 19955;
“contributory benefit” includes a contribution-based jobseeker’s allowance but not an income-based jobseeker’s allowance;
“due date” means, in relation to any contribution which a person is—
- a
liable to pay, the date by which payment falls to be made in accordance with Part IV of the Contributions Regulations;
- b
entitled, but not liable, to pay, the date 42 days after the end of the year in respect of which it is paid;
- a
“earnings factor” has the meaning assigned to it in section 21(5)(c) of the Act;
“relevant benefit year” has the meaning assigned to it in—
- a
section 2(4)(b) of the Jobseekers Act 1995, in relation to a contribution-based jobseeker’s allowance;
- b
paragraph 2(6)(b) of Schedule 3 to the Act6 (contribution conditions for entitlement to short-term incapacity benefit), in relation to short-term incapacity benefit;
- a
“relevant time”, in relation to short-term incapacity benefit, has the meaning assigned to it in paragraph 2(6)(a) of Schedule 3 to the Act;
“year” means tax year.
Appropriation of Class 3 contributions2
Any person paying Class 3 contributions in one year may appropriate such contributions to the earnings factor of another year if such contributions are payable in respect of that other year or, in the absence of any such appropriation, the Inland Revenue may, with the consent of the contributor, make such appropriation.
Crediting of Class 3 contributions3
Where, for any year, a contributor’s earnings factor derived from—
a
earnings upon which primary Class 1 contributions have been paid or treated as paid;
b
credited earnings;
c
Class 2 or Class 3 contributions paid by or credited to him; or
d
any or all of such earnings and contributions,
falls short of a figure which is 52 times that year’s lower earnings limit for Class 1 contributions by an amount which is equal to, or less than, half that year’s lower earnings limit, that contributor shall be credited with a Class 3 contribution for that year.
Treatment for the purpose of any contributory benefit of late paid contributions4
1
Subject to the provisions of regulations 5 and 6 below and regulation 40 of the Contributions Regulations (voluntary Class 2 contributions not paid within permitted period), for the purpose of entitlement to any contributory benefit, paragraphs (2) to (9) below shall apply to contributions (“relevant contributions”)—
a
paid after the due date; or
b
treated as paid after the due date under regulation 7(2) below.
2
Subject to the provisions of paragraph (4) below, any relevant contribution other than one referred to in paragraph (3) below—
a
if paid—
i
after the end of the second year following the year in which liability for that contribution arises,
ii
following the due date for that contribution in the case of a contribution which a person is entitled, but not liable, to pay,
shall be treated as not paid;
b
if paid before the end of the said second year, shall, subject to paragraphs (7) and (8) below, be treated as paid on the date on which payment of the contribution is made.
3
Subject to the provisions of paragraph (4) below, any relevant Class 2 contribution payable in respect of a contribution week after 5th April 1983 or any relevant Class 3 contribution payable in respect of a year after 5th April 1982—
a
if paid—
i
after the end of the sixth year following the year in which liability for that contribution arises,
ii
following the due date for that contribution in the case of a contribution which a person is entitled, but not liable, to pay,
shall be treated as not paid;
b
if paid before the end of the said sixth year, shall, subject to paragraphs (7) and (8) below, be treated as paid on the date on which payment of the contribution is made.
4
A Class 3 contribution payable by a person to whom regulation 27(3)(b)(ii) or (iii) of the Contributions Regulations7 (which specify the conditions to be complied with before a person may pay a Class 3 contribution) applies in respect of a year which includes a period of education, apprenticeship, training, imprisonment or detention in legal custody such as is specified in that regulation—
a
if paid after the end of the sixth year specified in that regulation, shall be treated as not paid;
b
if paid before the end of the said sixth year shall, subject to the provisions of paragraphs (7) and (8) below, be treated as paid on the date on which payment of the contribution is made.
5
Notwithstanding the provisions of paragraph (4) above, for the purpose of entitlement to any contributory benefit, where—
a
a Class 3 contribution other than one referred to in sub-paragraph (b) below which is payable in respect of a year specified in that sub-paragraph, is paid after—
i
the due date, and
ii
the end of the second year following the year preceding that in which occurred the relevant time or, as the case may be, the relevant event,
that contribution shall be treated as not paid;
b
in respect of a year after 5th April 1982, a Class 3 contribution which is payable in respect of a year specified in paragraph (4) above, is paid after—
i
the due date, and
ii
the end of the sixth year following the year preceding that in which occurred the relevant time or, as the case may be, the relevant event,
that contribution shall be treated as not paid.
6
For the purposes of paragraph (5) above, “relevant event” means the date on which the person concerned attained pensionable age8 or, as the case may be, died under that age.
7
Notwithstanding the provisions of paragraphs (2), (3) and (4) above, in determining whether the relevant contribution conditions are satisfied in whole or in part for the purpose of entitlement to any contributory benefit, any relevant contribution which is paid within the time specified in paragraph (2)(b), (3)(b) or, as the case may be, (4)(b) above shall be treated—
a
for the purpose of entitlement in respect of any period before the date on which the payment of the contribution is made, as not paid; and
b
subject to the provisions of paragraph (8) below, for the purpose of entitlement in respect of any other period, as paid on the date on which the payment of the contribution is made.
8
For the purpose of determining whether the second contribution condition for entitlement to a contribution-based jobseeker’s allowance or short-term incapacity benefit is satisfied in whole or in part, any relevant contribution shall be treated—
a
if paid before the beginning of the relevant benefit year, as paid on the due date;
b
if paid after the end of the benefit year immediately preceding the relevant benefit year, as not paid in relation to the benefit claimed in respect of any day before the expiry of a period of 42 days (including Sundays) commencing with the date on which the payment of that contribution is made, and, subject to the provisions of paragraphs (2)(a) and (3)(a) above, as paid at the expiry of that period in relation to entitlement to such benefit in respect of any other period.
9
For the purposes of paragraph (8) above, “second contribution condition” in relation to—
a
a contribution-based jobseeker’s allowance is a reference to the condition specified in section 2(1)(b) of the Jobseekers Act 19959;
b
short-term incapacity benefit is a reference to the condition specified in paragraph 2(3) of Schedule 3 to the Act.
10
This regulation shall not apply to Class 4 contributions.
Treatment for the purpose of any contributory benefit of late paid primary Class 1 contributions where there was no consent, connivance or negligence by the primary contributor5
1
This regulation applies where a primary Class 1 contribution which is payable on a primary contributor’s behalf by a secondary contributor—
a
is paid after the due date; or
b
in relation to any claim for—
i
a contribution-based jobseeker’s allowance, is not paid before the beginning of the relevant benefit year, or
ii
short-term incapacity benefit, is not paid before the relevant time,
and the delay in making payment is shown to the satisfaction of the Inland Revenue not to have been with the consent or connivance of, or attributable to any negligence on the part of, the primary contributor.
2
Where paragraph (1) above applies, the primary Class 1 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 day on which payment is made of the earnings in respect of which the contribution is payable; and
b
for any other purpose relating to entitlement to any contributory benefit, as paid on the due date.
3
For the purposes of this regulation—
a
“first contribution condition” in relation to—
i
a contribution-based jobseeker’s allowance is a reference to the condition specified in section 2(1)(a) of the Jobseekers Act 199510,
ii
short-term incapacity benefit is a reference to the condition specified in paragraph 2(2) of Schedule 3 to the Act11;
b
“primary contributor” means the person liable to pay a primary Class 1 contribution in accordance with section 6(4)(a) of the Act12 (liability for Class 1 contributions);
c
“secondary contributor” means the person who, in respect of earnings from employed earner’s employment, is liable to pay a secondary Class 1 contribution in accordance with section 6(4)(b) of the Act.
Treatment for the purpose of any contributory benefit of contributions under the Act paid late through ignorance or error6
1
In the case of a contribution paid by or in respect of a person after the due date, where—
a
the contribution is paid after the time when it would, under regulation 4 or 5 above, have been treated as paid for the purpose of entitlement to contributory benefit; and
b
it is shown to the satisfaction of the Inland Revenue that the failure to pay the contribution before that time is attributable to ignorance or error on the part of that person or the person making the payment and that that ignorance or error was not due to any failure on the part of such person to exercise due care and diligence.
the Inland Revenue may direct that, for the purposes of those regulations, the contribution shall be treated as paid on such earlier day as the Inland Revenue may consider appropriate in the circumstances, and those regulations shall have effect subject to any such direction.
2
This regulation shall not apply to a Class 4 contribution.
Treatment for the purpose of any contributory benefit of contributions paid under regulation 54 of the Contributions Regulations7
1
Subject to the provisions of paragraph (2) below, for the purpose of entitlement to any contributory benefit, where—
a
a person pays a Class 2 or Class 3 contribution in accordance with regulation 54 of the Contributions Regulations13 (method of, and time for, payment of Class 2 and Class 3 contributions etc.); and
b
the due date for payment of that contribution is a date after the relevant day,
that contribution shall be treated as paid by the relevant day.
2
Where, in respect of any part of a late notification period, a person pays a Class 2 contribution which he is liable to pay, that contribution shall be treated as paid after the due date, whether or not it was paid by the due date.
3
For the purposes of this regulation—
a
“late notification period” means the period beginning with the day a person liable to pay a Class 2 contribution was first required to notify the Inland Revenue in accordance with the provisions of regulation 53A of the Contributions Regulations14 (notification of commencement or cessation of payment of Class 2 or Class 3 contributions) and ending on the last day of the contribution quarter immediately before the contribution quarter in which he gives that notification;
b
“relevant day” means the first day in respect of which a person would have been entitled to receive the contributory benefit in question if any contribution condition relevant to that benefit had already been satisfied;
c
“contribution quarter” means one of the four periods of not less than 13 contribution weeks commencing on the first day of the first, fourteenth, twenty-seventh or fortieth contribution week, in any year.
Treatment for the purpose of any contributory benefit of contributions paid under an arrangement8
For the purposes of regulations 4 to 7 above and regulation 40 of the Contributions Regulations (voluntary Class 2 contributions not paid within permitted period)—
a
where a contribution is paid under an arrangement to which regulations 46A and 48 or, as the case may be, regulation 54A of the Contributions Regulations15 (other methods of collection and recovery of earnings-related contributions; special provisions relating to primary Class 1 contributions and arrangements approved by the Inland Revenue for method of, and time for, payment of Class 2 and Class 3 contributions respectively) apply, the date by which, but for the said regulations 4 to 7 and 40, the contribution would have fallen due to be paid shall, in relation to that contribution, be the due date;
b
any payment made of, or as on account of, a contribution in accordance with any such arrangement shall, on and after the due date, be treated as a contribution paid on the due date.
Application for allocation of national insurance number9
1
Subject to the provisions of paragraph (2) below, every person, who is over the age of 16 and satisfies the conditions specified in regulation 87 or 119 of the Contributions Regulations16 (conditions of domicile or residence and conditions as to residence or presence in Great Britain respectively), shall, unless he has already been allocated a national insurance number under the Act, the Social Security Act 197517 or the National Insurance Act 196518, apply either to the Secretary of State or to the Inland Revenue for the allocation of a national insurance number and shall make such application at such time and in such manner as the Secretary of State shall direct.
2
As respects any person who is neither an employed earner nor a self-employed earner the provisions of paragraph (1) above shall not apply unless and until that person wishes to pay a Class 3 contribution.
3
The Secretary of State may authorise arrangements for the allocation of a national insurance number to any person during the 12 months before that person reaches the age of 16, and in particular may direct that a person who will attain the age of 16 within 12 months after such direction shall apply for the allocation of a national insurance number before attaining the age of 16, and any such person shall accordingly comply with such direction.
Deduction of contribution from pensions etc.—prescribed enactments and instruments under which payable10
For the purposes of paragraph 10 of Schedule 1 to the Act (power to deduct contributions from a pension or allowance payable by the Secretary of State by virtue of any prescribed enactment or instrument), the enactments and instruments are—
a
Order in Council 19th December 1881;
b
The Royal Warrant 27th October 1884;
c
The Naval and Military War Pensions Act 191519;
d
The War Pensions Act 192020;
e
The War Pensions Act 192121;
f
Order by His Majesty 14th January 1922;
g
The War Pensions (Coastguards) Scheme 194422;
h
The Royal Warrant 196423;
i
The Order by Her Majesty 196424;
j
The War Pensions (Naval Auxiliary Personnel) Scheme 196425;
k
The Pensions (Polish Forces) Scheme 196426;
l
The War Pensions (Mercantile Marine) Scheme 196427;
m
The Order by Her Majesty (Ulster Defence Regiment) 197128;
n
The Personal Injuries (Civilians) Scheme 198329;
o
The Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 198330.
Consequential amendments to the Contributions Regulations11
1
The Contributions Regulations shall be amended in accordance with the following provisions of this regulation.
2
In regulation 1(2) (definitions), in the definition of “week”31 omit the words “for the purposes of regulation 38(7) it has the meaning assigned to it in regulation 38(8), and”.
3
In regulation 39 (treatment for the purpose of any contributory benefit of late paid or unpaid primary Class 1 contributions where there was no consent, connivance or negligence by the primary contributor)32—
a
in the heading, omit the words “late paid or”;
b
in paragraph (1), omit the words “is paid after the due date or” and “delay or”.
Revocations12
The regulations set out in column (1) of the Schedule to these Regulations are hereby revoked to the extent mentioned in column (3) of that Schedule.
Signed by authority of the Secretary of State for Social Security.
The Commissioners of Inland Revenue hereby concur.
SCHEDULEREGULATIONS REVOKED
Column (1) | Column (2) | Column (3) |
|---|---|---|
Citation | Statutory Instrument | Extent of Revocation |
The Social Security (Contributions) Regulations 1979 | Regulations 30, 36, 38, 38A, 41, 41A, 42, 44 and 55 | |
The Social Security (Contributions) Amendment Regulations 1980 | Regulation 4 | |
The Social Security (Contributions) Amendment Regulations 1984 | Regulation 13 | |
The Social Security (Contributions) Amendment (No. 2) Regulations 1987 | Regulations 8 and 9 | |
The Social Security (Contributions) Amendment (No. 5) Regulations 1992 | Regulations 2 and 4 | |
The Social Security (Contributions) Amendment (No. 6) Regulations 1993 | Regulations 3, 4 and 5 | |
The Social Security (Contributions) Amendment (No. 2) Regulations 1994 | Regulation 3 | |
The Social Security (Incapacity Benefit) (Consequential and Transitional Amendments and Savings) Regulations 1995 | Regulation 13(4) | |
The Social Security (Credits and Contributions) (Jobseeker’s Allowance Consequential and Miscellaneous Amendments) Regulations 1996 | Regulation 3(4) | |
The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1999 | Regulation 7 | |
The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999 | Regulation 13 | |
The Social Security (Contributions) (Amendment No. 8) Regulations 2000 | Regulation 6 |
(This note is not part of the Regulations)