The Social Security (Contributions and Credits) (Miscellaneous Amendments) Regulations (Northern Ireland) 1999

Explanatory Note

(This note is not part of the Regulations.)

These Regulations further amend the Social Security (Credits) Regulations (Northern Ireland) 1975 and the Social Security (Contributions) Regulations (Northern Ireland) 1979 (“the principal Regulations”).

Regulation 3(a) amends regulation 1(2) of the principal Regulations by substituting definitions of “contracted-out rate”, “non-contracted-out rate”, “normal rate” and “secondary contributor” and inserting a new definition of “retirement benefits scheme”.

Regulation 4 substitutes regulation 7 of the principal Regulations to specify the lower earnings limit, upper earnings limit and earnings threshold for the tax year beginning on 6th April 1999.

Regulation 5 substitutes regulation 8 of the principal Regulations to provide for the computation of primary and secondary Class 1 contributions where an employed earner’s earnings period is other than a week.

Regulation 6 revokes regulation 8A of the principal Regulations which provided for the calculation of the amounts of equivalent earnings brackets for earnings paid otherwise than weekly.

Regulation 7(a) amends regulation 9 of the principal Regulations by substituting paragraph (1) to provide for the calculation of primary and secondary Class 1 contributions at the normal and contracted-out rates.

Regulation 8 substitutes regulation 17 of the principal Regulations to specify that liability in any year for primary Class 1 contributions, and in certain cases Class 2 contributions, shall not exceed an amount calculated in accordance with that regulation.

Regulation 9 amends regulation 18 of the principal Regulations by adding a new paragraph (21) to provide for the calculation of a person’s earnings in respect of a payment pursuant to a retirement benefits scheme in relation to more than one person.

Regulation 10(a) amends regulation 19(1) of the principal Regulations by adding 5 new sub-paragraphs which exclude from the computation of a person’s earnings for the purposes of earnings-related contributions—

(a)payments to, and payments by way of benefits pursuant to, retirement benefits schemes referred to in section 596(1) or (2)(b) of the Income and Corporation Taxes Act 1988, pilots' benefit funds and superannuation funds approved before 6th April 1980 (new sub-paragraph (zj));

(b)a payment by way of relevant benefits attributable to payments prior to 6th April 1998 and pursuant to a retirement benefits scheme which was not approved by the Board of Inland Revenue (“the Board”) (new sub-paragraph (zk));

(c)a payment by way of any benefit pursuant to a retirement benefits scheme which was not approved by the Board and attributable to payments on, or after, 6th April 1998 which have already been included in a person’s earnings for the purposes of his assessment of earnings-related contributions (new sub-paragraph (zl));

(d)a payment made to a scheme established for the sole purpose of providing relevant benefits where, at the time of payment, certain conditions are satisfied (new sub-paragraph (zm));

(e)payments to pension schemes which are afforded relief from taxation under certain double taxation Conventions (new sub-paragraph (zn)).

Regulation 10(b) adds a new paragraph (12) to regulation 19 of the principal Regulations to make incidental provision for the purposes of the new sub-paragraph (zm).

Regulation 13 inserts a new regulation 32A into the principal Regulations to provide for the return, upon application, of earnings-related contributions paid in respect of a payment made to a retirement benefits scheme prior to it obtaining the Board’s approval for the period in respect of which that approval is subsequently given.

Regulation 16(a) substitutes paragraph (1) of regulation 60 of the principal Regulations to provide for the calculation of an exception from liability to pay Class 4 contributions.

Regulation 20 amends Schedule 1 to the principal Regulations. Regulation 20(3)(a) substitutes Regulation 13(6) of Schedule 1 to require a deductions working sheet to be maintained in respect of employed earners and to specify the details to be recorded thereon. Regulation 20(5) amends Regulation 30(1) of Schedule 1 to specify the details to be recorded on a return made by an employer at the end of a tax year.

Regulation 21 and the Schedule contain consequential revocations.

Consequential amendments to regulations 2(1) and 9(a) of the Social Security (Credits) Regulations (Northern Ireland) 1975 and regulations 1(3), 9(5), 28, 32, 36, 49(3), 60(4), 66(2), 113(3)(a) and 125 of, and Regulations 2(1), 13(6B), 25(a) and 30A(2) of Schedule 1 to, the principal Regulations are made by regulations 2, 3(b), 7(b), 11, 12, 14, 15, 16(b), 17 to 19 and 20(2), (3)(b), (4) and (6) of these Regulations.

Section 3(2A) and (5) of, and paragraph 6(1) of Schedule 1 to, the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Act”), some of the enabling provisions under which these Regulations are made, were inserted, added and amended respectively by Articles 45 and 46 of, and paragraph 58(8) of Schedule 6 to, the Social Security (Northern Ireland) Order 1998 (“the Order”). The said Articles 45 and 46 were brought into operation on 9th September 1998 while the said paragraph 58(8) was brought into operation, for the purpose only of authorising the making of regulations, on that date and for all other purposes on 6th April 1999, by virtue of the Social Security (1998 Order) (Commencement No. 1) Order (Northern Ireland) 1998 (S.R. 1998 No. 312 (C. 15)). Sections 5(1), 6(1), 8(1) and 9 of the Act, some of the remaining enabling provisions, were substituted by Article 48 of the Order which was brought into operation, for the purpose only of authorising the making ofregulations, on 24th February 1999 and for all other purposes on 6th April 1999, by virtue of the Social Security (1998 Order) (Commencement No. 3) Order (Northern Ireland) 1999 (S.R. 1999 No. 72 (C. 9)).

These Regulations correspond to provision contained in Regulations made by the Secretary of State for Social Security in relation to Great Britain and accordingly, by virtue of section 149(3) of, and paragraph 10 of Schedule 5 to, the Social Security Administration (Northern Ireland) Act 1992 (c. 8), are not subject to the requirement of section 149(2) of that Act for prior reference to the Social Security Advisory Committee.