Statutory Instruments
2009 No. 111
Social Security
The Social Security (Contributions) (Amendment) Regulations 2009
Made
28th January 2009
Laid before Parliament
28th January 2009
Coming into force
6th April 2009
These Regulations are made by the Treasury and the Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”).
The powers exercised by the Treasury are conferred by sections 5(4), (5) and (6), 122(1), (6A) and (6B) and 175(3) and (4) of the Social Security Contributions and Benefits Act 1992( 1 ) and sections 5(4), (5) and (6), 121(1) and 171(3), (4) and (10) of the Social Security Contributions and Benefits Act (Northern Ireland) Act 1992( 2 ).
Citation and commencement
1. These Regulations may be cited as the Social Security (Contributions) (Amendment) Regulations 2009 and shall come into force on 6th April 2009.
Amendment of the Social Security (Contributions) Regulations 2001
2.The Social Security (Contributions) Regulations 2001( 5 ) are amended as follows.
3. —(1) Amend regulation 11 (prescribed equivalents) as follows.
(2) In paragraph (1)—
(a) at the end of sub-paragraph (a) omit “and”;
(b) after sub-paragraph (a) insert—
“ (aa) section 22 of the Act (earnings factors) ( 6 ) ; and ” ; and
(c) for sub-paragraph (b) substitute—
“ (b) sections 41(1) (reduced rates of Class 1 contributions), 42A(1) (reduced rates of Class 1 contributions and rebates) and 45(1) (amount of minimum contributions) of the Pensions Act ( 7 ) , ” .
(3) After paragraph (1) insert—
“ (1A) The prescribed equivalents of the upper accrual point ( 8 ) for the purposes of—
(a) section 22 of the Act (earnings factors); and
(b) sections 41(1) (reduced rates of Class 1 contributions), 42A(1) (reduced rates of Class 1 contributions and rebates) and 45(1) (amount of minimum contributions) of the Pensions Act,
shall be determined in accordance with paragraphs (2), (4) and (5). ” .
(4) In paragraph (2) for the introductory words and sub-paragraph (a) substitute—
“ (2) Subject to paragraphs (4) and (5), the prescribed equivalents of the lower earnings limit and the upper accrual point shall be—
(a) where the earnings period is a multiple of a week, the amounts calculated by multiplying the lower earnings limit or the upper accrual point (“the weekly limits”) by the corresponding multiple; ” .
(5) After paragraph (2) insert—
“ (2A) Subject to paragraphs (4) and (5), the prescribed equivalents of the upper earnings limit shall be—
(a) where the earnings period is a month, £3,656;
(b) where the earnings period is a year, £43,875;
(c) where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;
(d) where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;
(e) in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned. ” .
(6) Amend paragraph (3)( 9 ) as follows—
(a) in sub-paragraph (a) for “£453” substitute “£476”; and
(b) in sub-paragraph (b) for “£5,435” substitute “£5,715”.
(7) For paragraph (4) substitute—
“ (4) The amounts determined in accordance with paragraphs (2)(b) and (c), paragraph (2A)(c) and (d) and paragraph (3)(c) and (d) if not whole pounds, shall be rounded up to the next whole pound. ” .
(8) In paragraph (5) for “paragraph (2)(d) and paragraph (3)(e)” substitute “paragraph (2)(d), paragraph (2A)(e) and paragraph (3)(e)”.
(9) After paragraph (5) insert—
“ (6) The following provisions of this regulation do not apply to Northern Ireland—
(a) paragraph (1A), and
(b) both references to “the upper accrual point” in paragraph (2), so that the term “the weekly limits” shall be read as referring only to the lower earnings limit in relation to Northern Ireland. ” .
4. —(1) Amend Schedule 4 (provisions derived from the Income Tax Acts and the Income Tax (Pay As You Earn) Regulations 2003) as follows.
(2) In paragraph 7(13)(b) (calculation of deduction)—
(a) in paragraph (iii) for “current upper earnings limit” substitute “upper accrual point”, and
(b) after paragraph (iii) insert—
“ (iiia) earnings which exceed the upper accrual point but do not exceed the current upper earnings limit, ” .
(3) In paragraph 9(1) (certificate of contributions paid)—
(a) in paragraph (c) for “current upper earnings limit” substitute “upper accrual point”, and
(b) after paragraph (c) insert—
“ (ca) the amount of any earnings in respect of which primary Class 1 contributions were payable which exceed the upper accrual point but do not exceed the current upper earnings limit, other than earnings from non-contracted-out employment in respect of which primary Class 1 contributions were payable at the reduced rate; ” .
(4) In paragraph 22(1)(c)(i) (return by employer at end of year) for “(iii)” substitute “(iiia)”.
Tony Cunningham
Dave Watts
Two of the Lords Commissioners of Her Majesty’s Treasury
28th January 2009
Dave Hartnett
Mike Eland
Two of the Commissioners for Her Majesty’s Revenue and Customs
28th January 2009
1992 c. 4 . Section 5 was substituted by paragraph 1 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30) . Section 122(1) is cited because of the meaning given to “prescribe”. Sub-sections (6A) and (6B) of section 122 were inserted by the National Insurance Contributions Act 2008 (c. 16) . Section 175(4) was amended by paragraph 29(4) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc ) Act 1999 (c. 2) .
1992 c. 7 . Section 5 was substituted by paragraph 1 of Schedule 10 to the Welfare Reform and Pensions Act 1999. Section 121(1) is cited because of the meaning given to “prescribe”. Section 171(10) was substituted by paragraph 28(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc. ) (Northern Ireland) Order 1999 ( S.I. 1999/671 ).
The relevant amendments to paragraph 6 of Schedule 1 were made by paragraph 77(8) of Schedule 7 to the Social Security Act 1998 (c.14) , paragraph 35 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc,) Act 1999 (c. 2) and paragraph 185 of Schedule 6 to the Income (Earnings and Pensions) Act 2003 (c.1.) . The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5(2) of the Commissioners for Revenue and Customs Act 2005 (c. 11) . Section 50(1) of that Act provides that a reference to the Commissioners of Inland Revenue, however expressed, shall be taken as a reference to the Commissioners of Her Majesty’s Revenue and Customs.
The relevant amendments to paragraph 6 of Schedule 1 were made by paragraph 58(8) of Schedule 6 to the Social Security (Northern Ireland) Order 1998 ( S.I.1998/1506 ), paragraph 34 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc,) Northern Ireland Order 1999 ( S.I. 1999/671 ) and paragraph 204 of Schedule 6 to the Income (Earnings and Pensions) Act 2003. The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5(2) of the Commissioners for Revenue and Customs Act 2005. Section 50(1) of that Act provides that a reference to the Commissioners of Inland Revenue, however expressed, shall be taken as a reference to the Commissioners of Her Majesty’s Revenue and Customs.
S.I. 2001/1004 . The relevant amending instruments are S.I. 2003/193 and S.I 2004/770 .
Section 22 of the Social Security Contributions and Benefits Act 1992 Act was amended by the Pensions Act 2007 (c.22) to refer to the upper accrual point. Section 22 was then amended by section 3(2) of the National Insurance Contributions Act 2008 (c.16) to introduce the upper accrual point for the tax year 2009-10 and subsequent years and also by paragraph 2 of Schedule 1 to that Act to include a reference to “the prescribed equivalent”.
Section 41(1) of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”) was amended by paragraph 37 to Schedule 1 to the Pensions Act 2007. Section 41, 42A and 45 of the 1993 Act were amended by paragraphs 10, 11 and 12 of Schedule 1 to the National Insurance Contributions Act 2008 to refer to the upper accrual point.
The term “upper accrual point” is defined in section 122 of the Social Security Contributions and Benefits Act 1992. This term was introduced by section 12 of the Pensions Act 2007 and the definition of upper accrual point was amended by section 3(4) of the National Insurance Contributions Act 2008.
Regulation 11(3) was amended by regulation 4 of S.I. 2008/133 ; there are other amending instruments but none is relevant.