The Social Security (Contributions) (Amendment No. 3) Regulations 2002

8.  For regulation 52 substitute—

“52.— (1) This regulation applies if—

(a) a contribution other than a Class 4 contribution has been paid in error; or

(b) there has been a payment of contributions in excess of the amount specified in regulation 21.

This regulation is subject to the provisions of regulations 51 and 57.

(2) If this regulation applies, an application may be made to the Board for the return of—

(a) the contribution paid in error; or

(b) so much of the payment of contributions as exceeds the amount specified in regulation 21.

(3) An application under paragraph (2) shall be made to the Board—

(a) in writing or in such form and by such means of electronic communications as are approved; and

(b) in the case of a contribution paid in error, within the time permitted by paragraph (11).

(4) On the making of an application under paragraph (2), the Board shall return the contribution paid in error, or so much of the payment in question as exceeds the amount specified in regulation 21.

This is subject to paragraphs (5) and (6).

(5) Paragraph (4) does not require the return of a contribution or a payment unless the amount to be returned exceeds—

(a) in the case of Class 1A and Class 1B contributions, 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; 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.

(6) Paragraph (4) does not require the return of a primary Class 1 contribution to which regulation 3 of the Social Security (Additional Pension) (Contributions Paid in Error) Regulations 1996(1) (purposes for which primary Class 1 contributions paid in error are to be treated as properly paid) applies.

(7) If an application under paragraph (2) has been made for the return of contributions paid in excess of the amount prescribed in regulation 21, the contributions shall be returned in the following order—

(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 Pensions Act(2) in respect of COSRS employment;

(e) any amount of primary Class 1 contributions reduced in accordance with section 42A(1) and (2) of the Pensions Act in respect of COMPS employment.

(8) In the case of contributions falling within paragraph (7)(d) or (e), the amount to be returned is—

(a) if the amount paid at the contracted-out rate equals or exceeds 53 times the amount payable on earnings at the upper earnings limit for the year in question, the sum of—

(i) 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

(ii) the amount paid at the contracted-out rate (if any); and

(b) if the amount paid at the contracted-out rate is less than 53 times the amount payable on earnings at the upper earnings limit for the year in question, or if no amount has been paid at the contracted-out rate, the amount paid at the normal rate.

(9) If—

(a) an application has been made under paragraph (2) for the return of contributions in excess of the amount specified in regulation 21; and

(b) the Board have been given notice under section 44(1) of the Pensions Act,

the contributions shall be returned in the order specified in paragraph (7), except that the contributions specified in sub-paragraph (c) shall be returned after those in sub-paragraphs (d) and (e).

(10) Contributions paid by a secondary contributor on behalf of any person in error, or in excess of the amount specified in regulation 21—

(a) if they are not recovered by the secondary contributor from that person, may be returned to the secondary contributor; and

(b) if they are recovered by the secondary contributor from that person may be returned either to that person, or, with that person’s consent given in writing or by such means of electronic communications as may be approved, to the secondary contributor.

(11) An application for the return of any contribution paid in error shall be made within the period of six years from the end of the year in which the contribution was due to be paid.

This is subject to the following qualification.

If the application is made after the end of that period, an officer of the Board shall admit it if satisfied that—

(a) the person making the application had reasonable excuse for not making the application within that period; and

(b) the application was made without unreasonable delay after the excuse had ceased.

(12) In this regulation “error” means, and means only, an error which—

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

(b) relates to some past or present matter.”.

(1)

S.I. 1996/1245.

(2)

1993 c. 48. Section 41 was amended by section 137(2) of the Pensions Act 1995 (c. 26). Subsection (1) was substituted by paragraph 127 of Schedule 7 to the Social Security Act 1998 and amended by paragraph 6(2) of Part 2 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30) (“the Welfare Reform Act”). Subsection (1A) was substituted by paragraph 6(3) of Part 2 of Schedule 9 to the Welfare Reform Act.