2008 No. 579
The Social Security (Contributions) (Re-rating) Order 2008
Made
Coming into force
As a result of carrying out in the tax year 2007-08 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Social Security Administration Act 1992 (“the Administration Act”)1, the Treasury have determined that an Order should be made under that section amending Part 1 of the Social Security Contributions and Benefits Act 19922 by altering the rates of Class 2 and Class 3 contributions, the amount of earnings below which an earner may be excepted from liability for Class 2 contributions and the lower and upper limits of profits to be taken into account for Class 4 contributions.
This Order makes provision for Northern Ireland, which corresponds to that mentioned in relation to Great Britain in the preceding recital, in accordance with section 129 of the Social Security Administration (Northern Ireland) Act 1992 (“the Northern Ireland Administration Act”)3.
A draft of this Order was laid before Parliament in accordance with the provisions of sections 141(3) and 190(1)(a) of the Administration Act4 and section 166(10A) of the Northern Ireland Administration Act5 and approved by resolution of each House of Parliament.
Citation, commencement and interpretation1
1
This Order may be cited as the Social Security (Contributions) (Re-rating) Order 2008 and shall come into force on 6th April 2008.
2
In this Order—
“the Act” means the Social Security Contributions and Benefits Act 1992; and
“the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 19929.
Rate of and small earnings exception from Class 2 contributions2
In both section 11 of the Act10 and section 11 of the Northern Ireland Act11 (Class 2 contributions)—
a
in subsection (1) for “£2.20” substitute “£2.30”; and
b
in subsection (4) (small earnings exception) for “£4,635” substitute “£4,825”.
Amount of Class 3 contributions3
Lower and upper limits for Class 4 contributions4
In each of sections 15(3), 18(1) and 18(1A) of the Act14 and sections 15(3), 18(1) and 18(1A) of the Northern Ireland Act15 (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—
a
for “£5,225” (lower limit) in each place where it appears, substitute “£5,435”; and
b
for “£34,840” (upper limit) in each place where it appears, substitute “£40,040”.
(This note is not part of the Order)