The Social Security (Credits, and Crediting and Treatment of Contributions) (Consequential and Miscellaneous Amendments) Regulations 2016

• Citation: S.I. 2016/1145
• Sections: 6

Section 1 Citation and commencement

These Regulations may be cited as the Social Security (Credits, and Crediting and Treatment of Contributions) (Consequential and Miscellaneous Amendments) Regulations 2016 and come into force on 1st January 2017.

Section 2 Treatment of contribution-based jobseeker’s allowance and contributory employment and support allowance

A contribution-based jobseeker’s allowance and a contributory employment and support allowance are to be treated as benefits for the purposes of making provision under paragraph 8(1)(d) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (power to make provision for contributions paid at one time to be treated as paid at some other time).

Section 3 Amendment of the Social Security (Credits) Regulations 1975

(1) The Social Security (Credits) Regulations 1975 are amended as follows.

(2) In regulation 7B(2) (credits for disability element of working tax credit) —

(a) after sub-paragraph (a) omit “or”; and

(b) for sub-paragraph (b) substitute—

(b) a self-employed earner whose profits for the year are below the small profits threshold specified in section 11(4) of the Contributions and Benefits Act , who would otherwise be liable to pay a Class 2 contribution; or

(c) excepted from liability to pay a Class 2 contribution by virtue of regulation 43 of the Social Security (Contributions) Regulations 2001 .

(3) In regulation 7C(1) (credits for working tax credit) —

(a) after sub-paragraph (a) omit “or”; and

(b) for sub-paragraph (b) substitute—

(b) a self-employed earner—

(i) whose profits for the year are below the small profits threshold specified in section 11(4) of the Contributions and Benefits Act, who would otherwise be liable to pay a Class 2 contribution; or

(ii) who is excepted from liability to pay a Class 2 contribution by virtue of regulation 43 of the Social Security (Contributions) Regulations 2001,

Section 4 Amendment of the Social Security and Child Support (Decisions and Appeals) Regulations 1999

(1) The Social Security and Child Support (Decisions and Appeals) Regulations 1999 are amended as follows.

(2) In regulation 1(3) (interpretation)—

(a) after the definition of “appeal” insert—

“bereavement allowance” means an allowance under section 39B of the Contributions and Benefits Act ;

“bereavement benefit” means—

a bereavement allowance;

a bereavement payment; or

a widowed parent’s allowance;

“bereavement payment” means a bereavement payment under section 36 of the Contributions and Benefits Act ;

(b) in the definition of “the Board”, for “of Inland Revenue” substitute “for Her Majesty’s Revenue and Customs;”;

(c) after the definition of “claimant” insert—

“contribution-based jobseeker’s allowance” means a contribution-based jobseeker’s allowance under Part 1 of the Jobseekers Act;

(d) after the definition of “the Welfare Reform Act” insert—

“widowed parent’s allowance” means an allowance under section 39A of the Contributions and Benefits Act ;

(3) In regulation 3 (revision of decisions)—

(a) after paragraph (8D) insert—

(8E) A decision in relation to a claim for a contribution-based jobseeker’s allowance or a contributory employment and support allowance may be revised at any time where—

(a) on or after the date of the decision a contribution is treated as paid as set out in regulation 7A of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (treatment of Class 2 contributions paid on or before the due date) ; and

(b) by virtue of the contribution being so treated, the person satisfies the contribution conditions of entitlement listed in column 2 of the table in paragraph (8G) in relation to a contribution-based jobseeker’s allowance or a contributory employment and support allowance.

(8F) A decision to award a benefit listed in column 1 of the table in paragraph (8G) may be revised at any time where, on or after the date of the decision—

(a) any of the circumstances set out in paragraph (8H) occur; and

(b) by virtue of the circumstance occurring, the person ceases to satisfy the contribution conditions of entitlement listed in the corresponding entry in column 2 of that table.

(8G) The table referred to in paragraphs (8E) and (8F) is as follows—

(8H) The circumstances are—

(a) a Class 2 contribution is repaid to a person in consequence of an amendment or correction of the person’s relevant profits under section 9ZA or 9ZB of the Taxes Management Act 1970 (amendment or correction of return by taxpayer or officer of the Board) ; or

(b) a Class 2 contribution is returned to a person under regulation 52 of the Social Security (Contributions) Regulations 2001 (contributions paid in error); or

(c) a Class 1 or Class 2 contribution paid by a person to Her Majesty’s Revenue and Customs under section 223 of the Finance Act 2014 (accelerated payment in respect of notice given while tax enquiry is in progress) is repaid to the person.

(8I) A decision to award a benefit specified in paragraph (8K) may be revised at any time where, on or after the date of the decision—

(a) any of the circumstances set out in paragraph (8H) occur; and

(b) by virtue of the circumstances occurring, the decision was more advantageous to the claimant than it would otherwise have been.

(8J) A decision to award a benefit specified in paragraph (8K), or a decision that that benefit is not payable, may be revised at any time where, on or after the date of the decision, a contribution is treated as paid by the relevant day by virtue of regulation 7(1) of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (treatment for the purpose of any contributory benefit of contributions paid under certain provisions relating to the payment and collection of contributions) .

(8K) The benefits specified in this paragraph are—

(a) a bereavement benefit;

(b) a Category A or Category B retirement pension under Part II of the Contributions and Benefits Act;

(c) a state pension under Part 1 of the Pensions Act 2014.

(b) after paragraph (11) insert—

(12) In this regulation—

“relevant day” has the meaning given in regulation 7(3)(b) of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001;

“relevant profits” has the meaning given in section 11(3) of the Contributions and Benefits Act;

(4) After regulation 6(2)(s) (supersession of decisions) , insert—

(sa) is a decision where on or after the date on which the decision was made, a late contribution is treated as paid by virtue of regulation 4 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 for the purposes of entitlement to—

(i) a bereavement benefit;

(ii) a Category A or Category B retirement pension under Part II of the Contributions and Benefits Act; or

(iii) a state pension under Part 1 of the Pensions Act 2014;

(5) At the end of regulation 7 (date from which a decision superseded under section 10 takes effect) insert—

(43) Where the decision is superseded in accordance with regulation 6(2)(sa), the superseding decision shall take effect from the date on which the contributions are treated as paid in accordance with regulation 4(7) of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 for the purposes of entitlement to—

(i) a bereavement benefit;

(ii) a Category A or Category B retirement pension under Part II of the Contributions and Benefits Act; or

(iii) a state pension under Part 1 of the Pensions Act 2014.

Section 5 Amendment of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001

(1) The Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 are amended as follows.

(2) In regulation 1(2) (interpretation)—

(a) in the definition of “the Contributions Regulations”, for “1979” substitute “2001”; and

(b) for the definition of “due date” substitute—

“due date” (subject to regulation 4(11)) means, in relation to—

any Class 1 contribution, the date by which payment falls to be made;

any Class 2 contribution which a person is liable or entitled to pay, the 31st January following the end of the year in respect of which it is payable;

any Class 3 contribution, the date 42 days after the end of the year in respect of which it is paid;

(3) In regulation 4 (treatment for the purpose of any contributory benefit of late paid contributions)—

(a) in paragraph (1), for “40” substitute “61”;

(b) in paragraph (2)(a)—

(i) in the words before paragraph (i), after “paid” insert “after the end of the second year”;

(ii) in paragraph (i), omit “after the end of the second year”;

(iii) after paragraph (i), insert “or”;

(iv) for paragraph (ii) substitute—

(ii) following the year in respect of which a person is entitled, but not liable, to pay the contribution,

(c) in paragraph (3)—

(i) in sub-paragraph (a), in the words before paragraph (i), after “paid” insert “after the end of the sixth year”;

(ii) in sub-paragraph (a)(i), omit “after the end of the sixth year”;

(iii) after sub-paragraph (a)(i), insert “or”;

(iv) for sub-paragraph (a)(ii) substitute—

(ii) following the year in respect of which a person is entitled, but not liable, to pay the contribution,

(v) in sub-paragraph (b), for “and” substitute “or”;

(d) in paragraph (4), for “27(3)(b)(ii) or (iii)” substitute “48(3)(b)(ii) or (iii)”; and

(e) for paragraph (8) substitute—

(8) For the purpose of determining whether the second contribution condition for entitlement to a contribution-based jobseeker’s allowance or a contributory employment and support allowance is satisfied in whole or in part a relevant contribution is to be treated—

(a) if a Class 1 contribution paid before the beginning of the relevant benefit year, as paid on the due date;

(b) if, subject to paragraph (2)(a), a Class 1 contribution paid after the end of the benefit year immediately preceding the relevant benefit year or, subject to paragraph (3)(a), a Class 2 contribution—

(i) as not paid in relation to the benefit claimed in respect of any day before the expiry of a period of 42 days (including Sundays) commencing with the date on which the payment of that contribution is made; and

(ii) as paid at the expiry of that period in relation to entitlement to such benefit in respect of any other period.

(4) In regulation 7 (treatment for the purpose of any contributory benefit of contributions paid under regulation 54 of the Contributions Regulations)—

(a) for the heading substitute “Treatment for the purpose of any contributory benefit of contributions paid under certain provisions relating to the payment and collection of contributions”;

(b) for paragraph (1) substitute—

(1) Subject to the provisions of paragraph (2), for the purpose of entitlement to any contributory benefit except a contribution-based jobseeker’s allowance or a contributory employment and support allowance, where—

(a) a person pays a Class 2 contribution under section 11(2) or (6) of the Act, or a Class 3 contribution in accordance with regulation 89, 89A, 90 or 148C of the Contributions Regulations (provisions relating to the method of, and time for, payment of Class 2 and Class 3 contributions etc. ); and

(b) the due date for payment of that contribution is a date after the relevant day,

that contribution is treated as paid by the relevant day.

(c) in paragraph (2), after “liable” insert “or entitled”;

(d) in paragraph (3)(a)—

(i) after “liable” insert “or entitled”;

(ii) for “53A” substitute “87, 87A or 87AA”; and

(iii) for “last day of the contribution quarter immediately before the contribution quarter in” substitute “day on”; and

(e) omit paragraph (3)(c).

(5) After regulation 7 insert—

Treatment for the purpose of a contribution-based jobseeker’s allowance or a contributory employment and support allowance of Class 2 contributions paid in accordance with the Act

(7A)

(1) For the purpose of entitlement to a contribution-based jobseeker’s allowance or a contributory employment and support allowance, a Class 2 contribution is to be treated as paid as set out in paragraph (2) if the contribution is paid—

(a) in relation to—

(i) a contribution-based jobseeker’s allowance, on or after the first day of the week for which the jobseeker’s allowance is claimed; or

(ii) a contributory employment and support allowance, on or after the first day of the relevant benefit week; and

(b) by the due date.

(2) The contribution is treated as paid—

(a) in relation to a contribution-based jobseeker’s allowance, before the week for which the jobseeker’s allowance is claimed; or

(b) in relation to a contributory employment and support allowance, before the relevant benefit week.

(3) “Relevant benefit week” has the meaning given in paragraph 5 of Schedule 1 to the Welfare Reform Act.

(6) In regulation 8 (treatment for the purpose of any contributory benefit of contributions paid under an arrangement)—

(a) for “7”, in both places where it appears, substitute “7A”;

(b) for “40”, in both places where it appears, substitute “61”;

(c) for “46A and 48” substitute “68 and 84”; and

(d) for “54A” substitute “90”.

Section 6 Amendment of the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) Regulations 2013

(1) The Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) Regulations 2013 are amended as follows.

(2) In regulation 17 (contributions cases), after paragraph (2) insert—

(3) A decision in relation to a claim for a jobseeker’s allowance or an employment and support allowance may be revised at any time where—

(a) on or after the date of the decision a contribution is treated as paid as set out in regulation 7A of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001 (treatment of Class 2 contributions paid on or before the due date) ; and

(b) by virtue of the contribution being so treated, the person satisfies the contribution conditions of entitlement specified in paragraph (6) in relation to that benefit.

(4) A decision to award a jobseeker’s allowance or an employment and support allowance may be revised at any time where on or after the date of the decision—

(a) any of the circumstances in paragraph (5) occur; and

(b) by virtue of the circumstance occurring, the person ceases to satisfy the contribution conditions of entitlement specified in paragraph (6) in relation to that benefit.

(5) The circumstances are—

(a) a Class 2 contribution is repaid to a person in consequence of an amendment or correction of the person’s relevant profits under section 9ZA or 9ZB of the Taxes Management Act 1970 (amendment or correction of return by taxpayer or officer of the Board) ;

(b) a Class 2 contribution is returned to a person under regulation 52 of the Social Security (Contributions) Regulations 2001 (contributions paid in error) ; or

(c) a Class 1 or a Class 2 contribution paid by a person to Her Majesty’s Revenue and Customs under section 223 of the Finance Act 2014 (accelerated payment in respect of notice given while tax enquiry is in progress) is repaid to the person.

(6) The contribution conditions of entitlement are—

(a) in relation to a jobseeker’s allowance, the conditions set out in section 2(1)(a) and (b) of the Jobseekers Act (the contribution-based conditions); or

(b) in relation to an employment and support allowance, the first and second conditions set out in paragraphs 1(1) and 2(1) of Schedule 1 to the 2007 Act (conditions relating to national insurance).

(7) In this regulation “relevant profits” has the meaning given in section 11(3) of the Contributions and Benefits Act.