The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2021
| Jurisdiction | UK Non-devolved |
| Citation | SI 2021/157 |
| Year | 2021 |
2021 No. 157
Social Security
The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2021
Made 15th February 2021
Coming into force 6th April 2021
These Regulations are made by the Treasury, in exercise of the powers conferred by sections 5(1) and (4) to (6), 9A(7) and (8), 9B(4) and (5) and 175(3) of the Social Security Contributions and Benefits Act 19921(“the Contributions Act”), sections 5(1) and (4) to (6), 9A(7) and (8), 9B(4) and (5) and 171(3) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922(“the Northern Ireland Contributions Act”), sections 141(4) and (5) and 142(2) and (3) of the Social Security Administration Act 19923(“the Administration Act”), section 129 of the Social Security Administration (Northern Ireland) Act 19924(“the Northern Ireland Administration Act”), section 2(2) and (3) of the Social Security Act 19935(“the 1993 Act”) and article 4(3) and (4) of the Social Security (Northern Ireland) Order 19936(“the 1993 Order”).
Regulations 3 to 5 are made as a result of the Treasury carrying out in the tax year 2020-21 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Administration Act7.
The Treasury have determined that, in relation to Great Britain, regulations 3 to 5 should be made under section 141 of the Administration Act to amend Part 1 of the Contributions Act by altering the small profits threshold for Class 2 contributions, the amount of a Class 3 contribution and the lower limit of profits to be taken into account for Class 4 contributions. The Treasury have determined that, in relation to Great Britain, there should be no alteration to the rate of Class 2 contributions.
Regulations 3 to 5 of these Regulations make 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 Northern Ireland Administration Act.
With a view to adjusting the level at which the National Insurance Fund stands for the time being, and having regard to estimated benefit expenditure for the financial year ending with 31st March 2022, the Treasury think it expedient that regulation 7 of these Regulations should be made under section 2(2) of the 1993 Act.
With a view to adjusting the level at which the Northern Ireland National Insurance Fund stands for the time being, and having regard to estimated benefit expenditure for the financial year ending with 31st March 2022, the Treasury think it expedient that regulation 8 of these Regulations should be made under article 4(3) of the 1993 Order.
A draft of these Regulations was laid before Parliament in accordance with the provisions of section 176(1)(za), (zb) and (a) of the Contributions Act8, section 172(11ZA), (11ZB) and (11A) of the Northern Ireland Contributions Act9, sections 141(3) and 190(1)(a) of the Administration Act10, section 166(10A) of the Northern Ireland Administration Act11, section 2(8) of the 1993 Act and article 4(8) of the 1993 Order12and approved by a resolution of each House of Parliament.
PART 1
General
Citation and commencement
1. These Regulations may be cited as the Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2021 and come into force on 6th April 2021.
PART 2
Rates, limits and thresholds for National Insurance contributions
Interpretation
2. In this Part—
“the Act” means the Social Security Contributions and Benefits Act 1992;
“the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
Small profits threshold for Class 2 contributions
3. In section 11(4) of the Act13and the Northern Ireland Act14(Class 2 contributions small profits threshold) for “£6,475” substitute “£6,515”.
Amount of a Class 3 contribution
4. In section 13(1) of the Act15and the Northern Ireland Act16(Class 3 contributions) for “£15.30” substitute “£15.40”.
Lower limit and upper limit of profits for Class 4 contributions
5.—(1) In sections 15(3)(a) and 18(1)(c) and (1A)(a) of the Act17and the Northern Ireland Act18(Class 4 contributions recoverable under the Income Tax Acts and under regulations) for “£9,500” (lower limit) substitute “£9,568”.
(2) In sections 15(3) and 18(1A) of the Act and the Northern Ireland Act for “£50,000” (upper limit) in each place where it appears substitute “£50,270”.
Amendments to the Social Security (Contributions) Regulations 2001
6.—(1) The Social Security (Contributions) Regulations 200119are amended as follows.
(2) In regulation 10 (earnings limits and thresholds)—
(a)
(a) in the introductory words, for “2020” substitute “2021”;
(b)
(b) in paragraphs (b) (upper earnings limit: primary Class 1 contributions), (e) (upper secondary threshold: under 21 group secondary Class 1 contributions) and (f) (upper secondary threshold: apprentices secondary Class 1 contributions) for “£962” substitute “£967”;
(c)
(c) in paragraph (c) (primary threshold: primary Class 1 contributions) for “£183” substitute “£184”; and
(d)
(d) in paragraph (d) (secondary threshold: secondary Class 1 contributions) for “£169” substitute “£170”.
(3) In regulation 11 (prescribed equivalents)—
(a)
(a) in paragraphs (2A) (upper earnings limit), (3B) (upper secondary threshold: under 21 age group) and (3C) (upper secondary threshold: apprentices)—
(i) in sub-paragraph (a) for “£4,167” substitute “£4,189”; and
(ii) in sub-paragraph (b) for “£50,000” substitute “£50,270”;
(b)
(b) in paragraph (3) (primary threshold)—
(i) in sub-paragraph (a) for “£792” substitute “£797”; and
(ii) in sub-paragraph (b) for “£9,500” substitute “£9,568”;
(c)
(c) in paragraph (3A) (secondary threshold)—
(i) in sub-paragraph (a) for “£732” substitute “£737”; and
(ii) in sub-paragraph (b) for “£8,788” substitute “£8,840”.
PART 3
National Insurance Funds
Prescribed percentage of estimated benefit expenditure – Great Britain
7. Section 2(2) of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament) has effect with respect to the...
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