The Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1996

• Citation: S.I. 1996/597
• 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 1996 and shall come into force on 6th April 1996.

(2) In this Order “ the Act ” means the Social Security Contributions and Benefits Act 1992.

Section 2 Weekly earnings figures 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)—

(a) for the figure “£104.99” specified in respect of Bracket 1 there shall be substituted the figure “£109.99”;

(b) for the figures “£105.00” and “£149.99” specified in respect of Bracket 2 there shall be substituted respectively the figures “£110.00” and “£154.99”;

(c) for the figures “£150.00” and “£204.99” specified in respect of Bracket 3 there shall be substituted respectively the figures “£155.00” and “£209.99”;

(d) for the figure “£205.00” specified in respect of Bracket 4 there shall be substituted the figure “£210.00”.

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 “£5.75” there shall be substituted the figure “£6.05”;

(b) in subsection (4) (small earnings exception) for the figure “£3,260” there shall be substituted the figure “£3,430”.

Section 4 Amount of Class 3 contributions

In section 13(1) of the Act (amount of Class 3 contributions) for the figure “£5.65” there shall be substituted the figure “£5.95”.

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

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

(a) for the percentage rate figure “7.3 per cent.” in both places where it appears there shall be substituted the figure “6 per cent.”;

(b) for the figure “£6,640” (lower limit) in each place where it appears there shall be substituted the figure “£6,860”;

(c) for the figure “£22,880” (upper limit) in both places where it appears there shall be substituted the figure “£23,660”.

Section 6 Prescribed percentage of estimated benefit expenditure

Section 2(2) of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament) shall have effect with respect to the tax year 1996–97 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 6 per cent..