Statutory Instruments
2000 No. 755
SOCIAL SECURITY
The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2000
Made
15th March 2000
Coming into force
6th April 2000
Whereas the Treasury, as a result of carrying out in the tax year 1999–2000 a review of the general level of earnings in Great Britain pursuant to section 141(1) and (2) of the Social Security Administration Act 1992( 1 ) (“the Administration Act”), have determined that an Order should be made under that section amending Part I of the Social Security Contributions and Benefits Act 1992( 2 ) 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 or gains to be taken into account for Class 4 contributions:
And whereas the Treasury, with a view to adjusting the level at which the National Insurance Fund stands for the time being and having regard to the sums which may be expected to be paid from the Fund in the financial year ending 31st March 2001, think it expedient that an Order should be made under section 143 of the Administration Act( 3 ), altering the rate of Class 4 contributions:
And whereas this Order makes provision for Northern Ireland corresponding to that mentioned in the two preceding recitals, pursuant to section 129 of the Social Security Administration (Northern Ireland) Act 1992( 4 ):
And whereas the Treasury, 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 31st March 2001, think it expedient that an Order should be made under section 2(2) of the Social Security Act 1993(“the 1993 Act”)( 5 ):
And whereas the Treasury, 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 31st March 2001, think it expedient that an Order should be made under Article 4(3) of the Social Security (Northern Ireland) Order 1993(“the 1993 Order”)( 6 ):
And whereas a draft of the following Order was laid before Parliament in accordance with the provisions of sections 141(3) and 190(1) of the Administration Act, section 166(10A) of the Social Security Administration (Northern Ireland) Act 1992, section 2(8) of the 1993 Act and Article 4(8) of the 1993 Order and approved by resolution of each House of Parliament:
Now, therefore, the Treasury, in exercise of the powers conferred by sections 141(4) and (5), 142(2) and (3), 143(1), (2) and (4), 144(2) and 189(3) of the Administration Act, sections 129 and 165(11A) of the Social Security Administration (Northern Ireland) Act 1992, section 2(2) and (8) of the 1993 Act and Article 4(3) and (8) of the 1993 Order and now vested in them( 7 ), and of all other powers enabling them in that behalf, hereby make the following Order:
Citation, commencement and interpretation
1. —(1) This Order may be cited as the Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2000 and shall come into force on 6th April 2000.
(2) In this Order—
“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( 8 ).
Rate of and small earnings exception from Class 2 contributions
2. In both section 11 of the Act( 9 ) and section 11 of the Northern Ireland Act( 10 ) (Class 2 contributions)—
(a) in subsection (1) (weekly rate) for “£6.55” there shall be substituted “£2.00”;
(b) in subsection (4) (small earnings exception) for “£3,770” there shall be substituted “£3,825”.
Amount of Class 3 contributions
3. In both section 13(1) of the Act( 11 ) and section 13(1) of the Northern Ireland Act( 12 ) (amount of Class 3 contributions) for “£6.45” there shall be substituted “£6.55”.
Percentage rate of and lower and upper limits for Class 4 contributions
4. In each of sections 15(3) and 18(1) of the Act( 13 ) and sections 15(3) and 18(1) of the Northern Ireland Act( 14 ) (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—
(a) for “6” (percentage rate) there shall be substituted “7”;
(b) for “£7,530” (lower limit) in each place where it appears, there shall be substituted “£4,385”;
(c) for “£26,000” (upper limit) there shall be substituted “£27,820”.
Prescribed percentage of estimated benefit expenditure—Great Britain
5.Section 2(2) of the Social Security Act 1993 (payments into the National Insurance Fund out of money provided by Parliament) shall have effect with respect to the tax year 2000–01 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 2 per cent.
Prescribed percentage of estimated benefit expenditure—Northern Ireland
6.Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into the Northern Ireland National Insurance Fund out of appropriated money) shall have effect with respect to the tax year 2000–01 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 2 per cent.
Jim Dowd
Bob Ainsworth
Two of the Lords Commissioners of Her Majesty’s Treasury
15th March 2000
1992 c. 5 ; section 141(1) and (2) were amended by paragraph 44 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) .
Section 143 was amended by paragraph 46 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.
1993 c. 3 ; section 2 was amended by paragraph 60 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.
S.I. 1993/592 (N.I. 2) ; Article 4 was amended by paragraph 52 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671 ).
See section 2 of, and paragraphs 44 to 46, 48, 57 and 60 of Schedule 3 to, the Social Security Contributions (Transfer of Functions, etc.) Act 1999 and Article 4 of, and paragraphs 43, 49, 50 and 52 of Schedule 3 to, S.I. 1999/671 .
Section 11 was amended by paragraph 12 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999, and the figures in subsections (1) and (4) were last amended by Article 2 of S.I. 1999/263 .
Section 11 was amended by paragraph 13 of Schedule 3 to S.I. 1999/671 , and the figures in subsections (1) and (4) were last amended by Article 2 of S.R. 1999 No. 51 .
Section 13(1) was amended by paragraph 14 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999, and the figure in subsection (1) was last amended by Article 3 of S.I. 1999/263 .
Section 13(1) was amended by paragraph 15 of Schedule 3 to S.I. 1999/671 , and the figure in subsection (1) was last amended by Article 3 of S.R. 1999 No. 51 .
Section 15(3) was amended by Articles 1 and 5(a) of S.I. 1996/597 , and the lower and upper limits were last amended by Article 4 of S.I.1999/263 . Section 18(1) was amended by Article 5(a) of S.I. 1996/597 and paragraph 18 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 and the lower and upper limits were last amended by Article 4 of S.I. 1999/263 .
Section 15(3) was amended by Article 5(a) of S.R. 1996 No. 72 , and the lower and upper limits were last amended by Article 4 of S.R. 1999 No. 51 . Section 18(1) was amended by Article 5(a) of S.R. 1996 No. 72 and paragraph 18(2) of Schedule 3 to S.I. 1999/671 , and the lower and upper limits were last amended by Article 4 of S.R. 1999 No. 51 .