The Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1994

• Citation: S.I. 1994/544
• Sections: 6

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1994 and shall come into force on 6th April 1994.

(2) In this Order—

“ the Act ” means the Social Security Contributions and Benefits Act 1992.

Section 2 Weekly earnings figures and appropriate percentage rates for secondary earnings brackets

(1) Section 9 of the Act (calculation of secondary Class 1 contributions) shall be amended in accordance with the provisions of this article.

(2) In subsection (3) (secondary earnings brackets and percentage rates)—

(a) for the figure “£94.99” specified in respect of Bracket 1 there shall be substituted the figure “£99.99” and for the percentage rate figure “4.6 per cent.” there shall be substituted the figure “3.6 per cent.”;

(b) for the figures “£95.00” and “£139.99” specified in respect of Bracket 2 there shall be substituted respectively the figures “£100.00” and “£144.99” and for the percentage rate figure “6.6 per cent.” there shall be substituted the figure “5.6 per cent.”;

(c) for the figures “£140.00” and “£194.99” specified in respect of Bracket 3 there shall be substituted respectively the figures “£145.00”and “£199.99” and for the percentage rate figure “8.6 per cent.” there shall be substituted the figure “7.6 per cent.”;

(d) for the figure “£195.00” specified in respect of Bracket 4 there shall be substituted the figure “£200.00” and for the percentage rate figure “10.4 per cent.” there shall be substituted the figure “10.2 per cent.”.

Section 3 Rate of, and small earnings exception from, Class 2 contributions

In section 11 of the Act (Class 2 contributions) —

(a) in subsection (1) (weekly rate) for the figure “£5.55” there shall be substituted the figure “£5.65”;

(b) in subsection (4) (small earnings exception) for the figure “£3,140” there shall be substituted the figure “£3,200”.

Section 4 Amount of Class 3 contributions

In section 13(1) of the Act (amount of Class 3 contributions) for the figure “£5.45”there shall be substituted the figure “£5.55”.

Section 5 Percentage rate and lower and upper limits for Class 4 contributions

In both section 15(3) and section 18(1) of the Act (Class 4 contributions recoverable under the Income Taxes Acts and under regulations) —

(a) for the percentage rate “6.3 per cent.” there shall be substituted the percentage rate “7.3 per cent.”;

(b) for the figure “£6,340”(lower limit) on each occasion where it appears there shall be substituted the figure “£6,490”;

(c) for the figure “£21,840” (upper limit) there shall be substituted the figure “£22,360”.

Section 6 Prescribed percentage of estimated benefit expenditure

Section 2(2) of the 1993 Act shall have effect with respect to the tax year 1994-95 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 16 per cent.