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Statutory Instrument 1999 No. 568The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999(The document as of February, 2008) STATUTORY INSTRUMENTS1999 No. 568The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999
The Secretary of State for Social Security, with the concurrence of the Inland Revenue in so far as required[1], in exercise of powers conferred by sections 3(2), (2A)[2], (3) and (5)[3], 5(1), 6(1), 8(1), 9(1), 14(1), 17(1) and (2), 19(1) to (3), 22(5), 119, 122(1) and 175(1) to (4) of, and paragraphs 4(a), 6(1) and 8(1)(a), (m) and (q) of Schedule 1 to, the Social Security Contributions and Benefits Act 1992[4] and section 162(12) of the Social Security Administration Act 1992[5] and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it[6] in so far as they relate to matters which are not otherwise exempt from the requirement of referral to the Committee by virtue of section 173(5)(a)[7] of the Social Security Administration Act 1992, hereby makes the following Regulations: Citation, commencement and interpretation 1. - (1) These Regulations may be cited as the Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations 1999 and shall come into force -
(b) for all other purposes, on 6th April 1999. (2) In these Regulations "the principal Regulations" means the Social Security (Contributions) Regulations 1979[9].
(b) COMPS employment, the reduced amount for the time being applying in accordance with section 42A(1) to (2A) of the Pension Schemes Act 1993 (which specifies the percentage reduction of primary and secondary Class 1 contributions in respect of that part of an employed earner's earnings which exceed the current lower earnings limit, but not the current upper earnings limit, in respect of members of a COMPS)[11];"; (b) for the definition of "non-contracted-out rate"[12], substitute -
(3) In paragraph (3)[15] for "and regulation 46", substitute ", regulation 46[16] and regulation 134[17]".
7.For the purposes of section 5(1) of the Social Security Contributions and Benefits Act 1992 (which provides for lower and upper earnings limits and an earnings threshold to be specified for each tax year in respect of Class 1 contributions), for the year which begins on 6th April 1999 -
(b) the upper earnings limit (for primary Class 1 contributions) for that year shall be Ј500; (c) the earnings threshold (for secondary Class 1 contributions) for that year shall be -
(ii) Ј361 per month where the earnings period is a month; (iii) Ј4,335 per year where the earnings period is a year.". Substitution of regulation 8 of the principal Regulations
8. - (1) The equivalent amounts for the purposes of sections 6(1), 8(1) and 9(1) of the Social Security Contributions and Benefits Act 1992 (which provide for liability for Class 1 contributions, the calculation of primary Class 1 contributions and the calculation of secondary Class 1 contributions respectively) and sections 41(1) and 42A(1) of the Pension Schemes Act 1993 (which provide for the calculation of the amount of the reduction of Class 1 contributions in respect of members of a COSRS and a COMPS respectively) shall be determined in accordance with the following provisions of this regulation. (2) The respective equivalent amounts for the purposes of sections 6(1)(a) and 8(1) of the Social Security Contributions and Benefits Act 1992 and sections 41(1) and 42A(1) of the Pension Schemes Act 1993 shall be -
(b) where the earnings period is a month, the amounts calculated by multiplying each of the weekly limits by 4 1/3 (c) where the earnings period is a multiple of a month, the amounts calculated by multiplying each of the weekly limits by 4 1/3 and multiplying each product by the corresponding multiple; (d) in any other case, the amounts calculated by dividing each of the weekly limits by 7 and multiplying each product by the number of days in the earnings period concerned. (3) The respective equivalent amount for the purpose of sections 6(1)(b) and 9(1) of the Social Security Contributions and Benefits Act 1992 shall be -
(b) where the earnings period is a multiple of a month, the amount calculated by dividing the annual earnings threshold by 12 and multiplying the product by the corresponding multiple; (c) in any other case, the amount calculated by dividing the annual earnings threshold by 365 and multiplying the product by the number of days in the earnings period concerned, and for the purposes of this paragraph "annual earnings threshold" means the earnings threshold applicable to an earnings period of a year specified in regulation 7(c)(iii) of these Regulations.
(b) paragraph (3)(a) and (b), of this regulation, if not whole pounds, shall be rounded up to the next whole pound.
(b) paragraph (3)(c), of this regulation shall be to the nearest Ј0.01, and any amount of Ј0.005 or less shall be disregarded.". Revocation of regulation 8A of the principal Regulations
(b) as regards the calculation referred to in sub-paragraph (a) of this paragraph -
(ii) earnings which in the relevant earnings period exceed the current lower earnings limit by Ј0.01, but not by more than Ј0.10, shall be treated as having exceeded that limit by Ј0.10.". (3) In paragraph (5) for "under paragraph 1(1) of Schedule 1 to the Act,", substitute "under paragraph 1(1) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (Class 1 contributions where earner employed in more than one employment),".
17.Subject to the provisions of section 12 of the Social Security Contributions and Benefits Act 1992 (late paid Class 2 contributions) and of regulations 43B, 43C and 43D of these Regulations[23], for the purposes of section 19(1) and (2) of that Act (power to prescribe maximum amounts of contributions and repayment of excess) where an earner is employed in more than one employment but without prejudice to the earner's liability in the first instance for the full amounts payable apart from this regulation, liability in any year for primary Class 1 contributions, or, where both Class 1 and Class 2 contributions are payable by an earner in any year, for both primary Class 1 contributions and Class 2 contributions shall not exceed an amount equal to 53 primary Class 1 contributions at the primary percentage payable on earnings at the upper earnings limit for that year.". Amendment of regulation 18 of the principal Regulations
(b) where the separate benefits to be provided to each of them respectively are not known at the time of the payment, an equal part thereof.". Amendment of regulation 19 of the principal Regulations
(ii) to a pilots' benefit fund under section 607 of the Income and Corporation Taxes Act 1988 (pilots' benefit fund)[28], (iii) to which section 608 of the Income and Corporation Taxes Act 1988 (superannuation funds approved before 6th April 1980) applies, (iv) by way of any benefit pursuant to a scheme or fund falling within heads (i), (ii) or (iii) of this sub-paragraph; (zo) a payment by way of relevant benefits pursuant to a retirement benefits scheme which has not been approved by the Board of Inland Revenue for the purposes of Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 (retirement benefit schemes) and attributable to payments prior to 6th April 1998; for the purposes of this sub-paragraph "relevant benefits" has the meaning assigned to it in section 612 of the Income and Corporation Taxes Act 1988;
(ii) that application has not been rejected, (iii) the payment represents contributions in respect of an employed earner's earnings not in excess of the permitted maximum in force at the time it is made, (iv) the terms of the scheme do not permit any pension payable under it, in whole or in part, to be surrendered, commuted or assigned except in so far as to allow an employed earner on retirement to obtain, by commutation of his pension, a lump sum or sums not exceeding in all three-eightieths of his final remuneration for each year of his service up to a maximum of 40, (v) where the scheme is connected with another scheme or schemes each of which is an approved scheme, the amount payable by way of pension or commuted pension under the scheme will not, when aggregated with any amount payable by way of pension or commuted pension under the other scheme or schemes, exceed the relevant amount, and (vi) in the case of a small self-administered scheme, the provisions of regulation 9 of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-administered Schemes) Regulations 1991 (provisions as to pensioner trustees)[30] have been satisfied, but this sub-paragraph shall not apply to a small self-administered scheme to which the provisions of regulation 3 of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-administered Schemes) Regulations 1991 (restrictions on the Board's discretion) apply;
(ii) Article 17A of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Republic of Ireland) Order 1976 (pension scheme contributions)[32]; for the purposes of this head that Article shall be read as if the words "or is being considered for approval" were omitted, (iii) Article 28(3) of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Denmark) Order 1980 (miscellaneous rules)[33].". (3) After paragraph (11)[34], add -
(b) "permitted maximum" shall be the amount for the time being specified in an order made under section 590C(6) of the Income and Corporation Taxes Act 1988 (earnings cap)[35]; (c) whether or not a scheme is connected with another scheme or schemes shall be determined in accordance with the provisions of section 590A(2) to (4) of the Income and Corporation Taxes Act 1988 (section 590: supplementary provisions)[36]; (d) "relevant amount", in the case of a pension which is not a commuted pension, shall be determined in accordance with the provisions of section 590B(3) and (7) to (11) of the Income and Corporation Taxes Act 1988 (section 590: further supplementary provisions)[37] and, in the case of a pension which is a commuted pension, the provisions of section 590B(4) and (7) to (11) of that Act; (e) "small self-administered scheme" has the meaning assigned to it in regulation 2(1) of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-administered Schemes) Regulations 1991.". Notes: [1] See paragraph 6(1) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c.4).back [2] Subsection (2A) was inserted by section 48 of the Social Security Act 1998 (c.14).back [3] Section 3(5) is inserted by section 49 of the Social Security Act 1998.back [4] Sections 5(1), 6(1), 8(1) and 9 were substituted by section 51(1) to (4) of the Social Security Act 1998 respectively; section 22(5) was amended by paragraph 22 of Schedule 2 to the Jobseekers Act 1995 (c.18); section 122(1) is cited because of the meaning ascribed to the word "prescribe"; paragraph 6(1) of Schedule 1 was amended by paragraph 77(8) of Schedule 7 to the Social Security Act 1998.back [5] 1992 c.5.back [6] See section 173(1)(b) of the Social Security Administration Act 1992.back [7] See regulation 8 of these Regulations which adds paragraph (21) to regulation 18 of the Social Security Contributions Regulations 1979 (S.I. 1979/591).back [8] S.I. 1999/567.back [9] The relevant amending instruments are S.I. 1981/82, 1982/206 and 1033, 1983/395, 1984/77, 1985/396, 397, 398 and 1398, 1987/413 and 2111, 1989/345 and 1677, 1990/605, 1991/640 and 1935, 1992/97 and 1440, 1996/777 and 2407, 1998/523 and 2211 and 1999/567.back [10] 1993 c.48. Section 41(1) and (1A) are substituted by paragraph 127 of Schedule 7 to the Social Security Act 1998. The definition of "COSRS employment" was inserted by regulation 2 of S.I. 1996/2407.back [11] Section 42A(1) and (2) is substituted by paragraph 128 of Schedule 7 to the Social Security Act 1998. The definition of "COMPS employment" was inserted by regulation 2 of S.I. 1996/2407.back [12] The definition of "non-contracted-out rate" was amended by regulation 5(2)(a) of S.I. 1985/1398 and regulation 3(2) of S.I. 1989/1677.back [13] Section 8(2) is substituted by section 51(3) of the Social Security Act 1998.back [14] 1988 c.1.back [15] Paragraph (3) was added by regulation 2(2) of S.I. 1998/2211.back [16] Regulation 46 was amended by regulation 5 of S.I. 1992/97.back [17] Regulation 134 was amended by regulation 2(5) of S.I. 1989/345 and is substituted by regulation 18 of these Regulations.back [18] Regulation 7 was amended by regulation 2 of S.I. 1998/523.back [19] Regulation 8 was amended by regulation 4 of S.I. 1987/413, regulation 2 of S.I. 1987/2111 and regulation 3(3) of S.I. 1989/1677.back [20] Regulation 8A was inserted by regulation 5(3) of S.I. 1985/1398 and amended by regulation 5 of S.I. 1987/413, regulation 3 of S.I. 1987/2111 and regulation 3(4) of S.I. 1989/1677.back [21] Regulation 9 was amended by regulation 5(4) of S.I. 1985/1398.back [22] Regulation 17 was amended by regulation 2 of S.I. 1985/398.back [23] Regulations 43B to 43D were inserted by regulation 4 of S.I. 1985/397 and amended by regulation 5(8) and (9) of S.I. 1985/1398 and regulation 2 of S.I. 1991/1935.back [24] Paragraph (20) was added by regulation 2(6) of S.I. 1999/567.back [25] Sub-paragraph (zm) was added by regulation 3(2)(b) of S.I. 1999/567.back [26] Section 595 was amended by paragraph 7 of Schedule 6 to the Finance Act 1989 (c.26).back [27] Section 596 was amended by paragraph 8 of Schedule 6 to the Finance Act 1989.back [28] Section 607 was amended by section 104(2) of the Finance Act 1994 (c.9).back [29] Section 604 was amended by paragraph 3 of Schedule 15 to the Finance Act 1998 (c.36).back [30] S.I. 1991/1614.back [31] S.I. 1968/1869; paragraph (8) was added by Article 16 of the Protocol set out in the Schedule to S.I. 1987/2055.back [32] S.I. 1976/2151; Article 17A was added by Article I of the Protocol set out in the Schedule to S.I. 1995/764.back [33] S.I. 1980/1960; paragraph (3) was replaced by Article X(2) of the Protocol set out in Part I of the Schedule to S.I. 1996/3165.back [34] Paragraph (11) was added by regulation 3(3) of S.I. 1999/567.back [35] Section 590C was inserted by paragraph 4 of Schedule 6 to the Finance Act 1989.back [36] Section 590A was inserted by paragraph 4 of Schedule 6 to the Finance Act 1989.back [37] Section 590B was inserted by paragraph 4 of Schedule 6 to the Finance Act 1989 and subsection (11) was amended by section 107(6) of the Finance Act 1993 (c.34).back |
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