Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999

JurisdictionUK Non-devolved
CitationSI 1999/568

1999 No. 568

SOCIAL SECURITY

The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999

Made 5th March 1999

Laid before Parliament 15th March 1999

Coming into force in accordance with regulation 1

The Secretary of State for Social Security, with the concurrence of the Inland Revenue in so far as required1, in exercise of powers conferred by sections 3(2), (2A)2, (3) and (5)3, 5(1), 6(1), 8(1), 9(1), 14(1), 17(1) and (2), 19(1) to (3), 22(5), 119, 122(1) and 175(1) to (4) of, and paragraphs 4(a), 6(1) and 8(1)(a), (m) and (q) of Schedule 1 to, the Social Security Contributions and Benefits Act 19924and section 162(12) of the Social Security Administration Act 19925and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it6in so far as they relate to matters which are not otherwise exempt from the requirement of referral to the Committee by virtue of section 173(5)(a)7of the Social Security Administration Act 1992, hereby makes the following Regulations:

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999 and shall come into force—

(a)

(a) for the purposes of regulations 8 and 9(2) and (3), on 6th April 1999 immediately after the coming into force of regulations 2(6), 3(2)(b) and (3) respectively of the Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 19998;

(b)

(b) for all other purposes, on 6th April 1999.

(2) In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 19799.

S-2 Amendment of regulation 1 of the principal Regulations

Amendment of regulation 1 of the principal Regulations

2.—(1) Regulation 1 of the principal Regulations (citation, commencement and interpretation) shall be amended in accordance with the following provisions of this regulation.

(2) In paragraph (2)—

(a)

(a) for the definition of “contracted-out rate”, substitute—

““contracted-out rate” means, in relation to Class 1 contributions payable in respect of earnings paid to or for the benefit of an earner who is in—

(a) COSRS employment, the reduced amount for the time being applying in accordance with section 41(1) to (1B) of the Pension Schemes Act 1993 (which specifies the percentage reduction of primary and secondary Class 1 contributions in respect of that part of an employed earner’s earnings which exceed the current lower earnings limit, but not the current upper earnings limit, in respect of members of a COSRS)10;

(b) COMPS employment, the reduced amount for the time being applying in accordance with section 42A(1) to (2A) of the Pension Schemes Act 1993 (which specifies the percentage reduction of primary and secondary Class 1 contributions in respect of that part of an employed earner’s earnings which exceed the current lower earnings limit, but not the current upper earnings limit, in respect of members of a COMPS)11;”;

(b)

(b) for the definition of “non-contracted-out rate”12, substitute—

““non-contracted-out rate” means, in relation to Class 1 contributions payable in respect of earnings paid to or for the benefit of an earner in non-contracted-out employment, the primary percentage for the time being specified in section 8(2) of the Social Security Contributions and Benefits Act 199213;”;

(c)

(c) for the definition of “normal percentage”, substitute—

““normal rate” means the amount of a Class 1 contribution which would be payable in respect of earnings paid to or for the benefit of an employed earner in any week if the employment were not contracted-out employment;”;

(d)

(d) at the appropriate place in the alphabetical order, insert—

““retirement benefits scheme” has the meaning assigned to it in section 611 of the Income and Corporation Taxes Act 198814;”;

(e)

(e) for the definition of “secondary contributor”, substitute—

““secondary contributor” means the person who, in respect of earnings from employed earner’s employment, is liable to pay a secondary Class 1 contribution under section 6(3) of the Social Security Contributions and Benefits Act 1992;”.

(3) In paragraph (3)15for “and regulation 46”, substitute “, regulation 4616and regulation 13417”.

S-3 Substitution of regulation 7 of the principal Regulations

Substitution of regulation 7 of the principal Regulations

3. For regulation 7 of the principal Regulations (lower and upper earnings limits)18, substitute—

S-7

Lower and upper earnings limits and earnings threshold

7. For the purposes of section 5(1) of the Social Security Contributions and Benefits Act 1992 (which provides for lower and upper earnings limits and an earnings threshold to be specified for each tax year in respect of Class 1 contributions), for the year which begins on 6th April 1999—

(a) the lower earnings limit (for primary Class 1 contributions) for that year shall be £66;

(b) the upper earnings limit (for primary Class 1 contributions) for that year shall be £500;

(c) the earnings threshold (for secondary Class 1 contributions) for that year shall be—

(i) £83 per week where the earnings period is a week;

(ii) £361 per month where the earnings period is a month;

(iii) £4,335 per year where the earnings period is a year.”.

S-4 Substitution of regulation 8 of the principal Regulations

Substitution of regulation 8 of the principal Regulations

4. For regulation 8 of the principal Regulations (equivalent amounts)19, substitute—

S-8

Equivalent amounts

8.—(1) The equivalent amounts for the purposes of sections 6(1), 8(1) and 9(1) of the Social Security Contributions and Benefits Act 1992 (which provide for liability for Class 1 contributions, the calculation of primary Class 1 contributions and the calculation of secondary Class 1 contributions respectively) and sections 41(1) and 42A(1) of the Pension Schemes Act 1993 (which provide for the calculation of the amount of the reduction of Class 1 contributions in respect of members of a COSRS and a COMPS respectively) shall be determined in accordance with the following provisions of this regulation.

(2) The respective equivalent amounts for the purposes of sections 6(1)(a) and 8(1) of the Social Security Contributions and Benefits Act 1992 and sections 41(1) and 42A(1) of the Pension Schemes Act 1993 shall be—

(a)

(a) where the earnings period is a multiple of a week, the amounts calculated by multiplying the weekly lower and upper earnings limits (“the weekly limits”) by the corresponding multiple;

(b)

(b) where the earnings period is a month, the amounts calculated by multiplying each of the weekly limits by 4 1/3

(c)

(c) where the earnings period is a multiple of a month, the amounts calculated by multiplying each of the weekly limits by 4 1/3 and multiplying each product by the corresponding multiple;

(d)

(d) in any other case, the amounts calculated by dividing each of the weekly limits by 7 and multiplying each product by the number of days in the earnings period concerned.

(3) The respective equivalent amount for the purpose of sections 6(1)(b) and 9(1) of the Social Security Contributions and Benefits Act 1992 shall be—

(a)

(a) where the earnings period is a multiple of a week, the amount calculated by dividing the annual earnings threshold by 52 and multiplying the product by the corresponding multiple;

(b)

(b) where the earnings period is a multiple of a month, the amount calculated by dividing the annual earnings threshold by 12 and multiplying the product by the corresponding multiple;

(c)

(c) in any other case, the amount calculated by dividing the annual earnings threshold by 365 and multiplying the product by the number of days in the earnings period concerned,

and for the purposes of this paragraph “annual earnings threshold” means the earnings threshold applicable to an earnings period of a year specified in regulation 7(c)(iii) of these Regulations.

(4) The amounts determined in accordance with—

(a)

(a) paragraph (2)(b) and (c);

(b)

(b) paragraph (3)(a) and (b),

of this regulation, if not whole pounds, shall be rounded up to the next whole pound.

(5) The calculation prescribed in—

(a)

(a) paragraph (2)(d);

(b)

(b) paragraph (3)(c),

of this regulation shall be to the nearest £0.01, and any amount of £0.005 or less shall be disregarded.”.

S-5 Revocation of regulation 8A of the principal Regulations

Revocation of regulation 8A of the principal Regulations

5. Regulation 8A of the principal Regulations (equivalent earnings brackets for earners paid otherwise than weekly)20is hereby revoked.

S-6 Amendment of regulation 9 of the principal Regulations

Amendment of regulation 9 of the principal Regulations

6.—(1) Regulation 9 of the principal Regulations (calculation of earnings-related contributions)21shall be amended in accordance with the following provisions of this regulation.

(2) For paragraph (1), substitute—

S-1

“1 Subject to the provisions of paragraphs (3) and (4) of this regulation, earnings-related contributions shall be calculated in accordance with the following provisions of this paragraph—

(a) primary and secondary Class 1 contributions under section 6 of the Social Security Contributions and Benefits Act 1992 (liability for Class 1 contributions) and any primary and secondary Class 1 contributions at the normal rate and at the contracted-out rate shall each be calculated separately; and

(b) as regards the calculation referred to in sub-paragraph (a) of this paragraph—

(i) primary and secondary Class 1 contributions shall be calculated to the nearest £0.01 and any amount of £0.005 or less shall be disregarded,

(ii) earnings which in the relevant earnings period exceed the current lower earnings limit by £0.01, but not by more than £0.10, shall be...

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