The Social Security (Contributions) (Amendment) Regulations 2009

• Citation: S.I. 2009/111
• Sections: 4

Section 1 Citation and commencement

These Regulations may be cited as the Social Security (Contributions) (Amendment) Regulations 2009 and shall come into force on 6th April 2009.

Section 2 Amendment of the Social Security (Contributions) Regulations 2001

The Social Security (Contributions) Regulations 2001 are amended as follows.

Section 3 Amendment of the Social Security (Contributions) Regulations 2001

(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) ; 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 ,

(3) After paragraph (1) insert—

(1A) The prescribed equivalents of the upper accrual point 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) 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.

Section 4 Amendment of the Social Security (Contributions) Regulations 2001

(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)”.