PART 2Thresholds for paying, and being treated as having paid, Class 2 contributions
Introduction of lower profits threshold (England, Scotland and Wales)2
1
Section 11 of the Social Security Contributions and Benefits Act 19923 is amended as follows.
2
In subsection (2), for “of, or exceeding the small profits threshold” substitute “that exceed the lower profits threshold”
.
3
For subsection (4) substitute—
4
For the purposes of this Act—
a
the “lower profits threshold” is £11,908, and
b
the “small profits threshold” is £6,725.
4
After subsection (5) insert—
5A
Subsection (5B) applies to an earner who has, for the relevant tax year, relevant profits of, or exceeding, the small profits threshold but which do not exceed the lower profits threshold.
5B
An earner to whom this subsection applies is treated, for relevant purposes, as having actually paid a Class 2 contribution under subsection (2) in respect of each week in the relevant tax year that the earner is in the employment.
5C
“For relevant purposes” means for the purposes of provision made by or under an enactment that—
a
is provision relating to benefits, or any other entitlement, provided for by or under an enactment, and
b
applies by reference (however framed) to Class 2 contributions (whether or not the provision refers to contributions treated as paid).
5
In subsection (7), after “paid” insert “or treated as paid”
.