Social Security (Contributions) Amendment (No. 5) Regulations 1996

JurisdictionUK Non-devolved
CitationSI 1996/2407

1996 No. 2407

SOCIAL SECURITY

The Social Security (Contributions) Amendment (No. 5) Regulations 1996

Made 16th September 1996

Laid before Parliament 23th September 1996

Coming into force 6th April 1997

The Secretary of State for Social Security, with the concurrence of the Inland Revenue in so far as required1, in exercise of powers conferred by sections 1(4), 3(2) and (3), 4(5), 17(3) and (6), 122(1) and 175(1) to (3) of, and paragraphs 1(1), 2, 6(1) and 8(1)(m) of Schedule 1 to, the Social Security Contributions and Benefits Act 19922and 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 it3, hereby makes the following Regulations:

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Social Security (Contributions) Amendment (No. 5) Regulations 1996 and shall come into force on 6th April 1997.

(2) In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 19794and “Schedule 1” means Schedule 1 to the principal Regulations (containing the provisions of the Income Tax (Employments) Regulations 19735as (with extensions and modifications) they apply to earnings-related contributions and Class 1A contributions under the Social Security Contributions and Benefits Act 19926).

S-2 Amendment of regulation 1 of the principal Regulations

Amendment of regulation 1 of the principal Regulations

2. In regulation 1(2) of the principal Regulations (interpretation)7at the appropriate places, insert—

““COMPS employment” means employment in respect of which minimum payments are made to a money purchase pension scheme contracted out under section 9(3) of the Pension Schemes Act 19938;

“COSRS employment” means employment which qualifies an earner for a pension provided by a salary related scheme contracted out under section 9(2) of the Pension Schemes Act 19939;

“director” means—

(a) in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body;

(b) in relation to a company whose affairs are managed by a single director or similar person, that director or person;

(c) any person in accordance with whose directions or instructions the company’s directors as defined in (a) and (b) above are accustomed to act; and for this purpose a person is not to be treated as such a person by reason only that the directors act on advice given by him in his professional capacity;”.

S-3 Amendment of regulation 5A of the principal Regulations

Amendment of regulation 5A of the principal Regulations

3. In regulation 5A(2) of the principal Regulations (earnings period for earnings to be aggregated where the earnings periods for those earnings otherwise would be of different lengths)10for sub-paragraph (b), substitute—

“(b)

“(b) where the earnings are derived from employments which include any contracted-out employment and any non-contracted-out employment and the employed earner is not a person in respect of whom minimum contributions are paid by the Secretary of State in accordance with section 43 of the Pensions Schemes Act 1993, and—

(i) any of the contracted-out employments is COMPS employment, the earnings period in respect of the earnings derived from that COMPS employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments;

(ii) the contracted-out employment is COSRS employment only, the earnings period in respect of the earnings derived from that COSRS employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments; or

(bb)

(bb) where the earnings are derived from employments which are contracted-out employment only and—

(i) any of the employments is COMPS employment, the earnings period in respect of the earnings derived from that COMPS employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments;

(ii) all of those employments are COSRS employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments; and”.

S-4 Amendment of regulation 32 of the principal Regulations

Amendment of regulation 32 of the principal Regulations

4.—(1) Regulation 32 of the principal Regulations (return of contributions)11shall be amended in accordance with the following paragraphs of this regulation.

(2) In paragraph (2)—

(a)

(a) for “section 1(9) of the Social Security Act 1986”, substitute “section 44(1) of the Pension Schemes Act 1993”;

(b)

(b) for sub-paragraph (d), substitute—

“(d)

“(d) any amount of primary Class 1 contributions at the percentages applying under section 41(1)12of the Pension Schemes Act 1993 in respect of COSRS employment as specified in head (i), (ii) or (iii) below—

(i) where the amount paid at the contracted-out percentage is equal to or exceeds 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage in excess of 53 times the amount, calculated at the initial primary percentage rate specified in section 8(2)(a) of the Social Security Contributions and Benefits Act 1992, payable on earnings at the lower earnings limit for that year and the amount paid at the contracted-out percentage if any;

(ii) where the amount paid at the contracted-out percentage is less than 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage;

(iii) where no amount has been paid at the contracted-out percentage, the amount paid at the normal percentage;

(e)

(e) any amount of primary Class 1 contributions at the percentages applying under section 42A of the Pension Schemes Act 199313in respect of COMPS employment as specified in head (i), (ii) or (iii) below—

(i) where the amount paid at the contracted-out percentage is equal to or exceeds 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage in excess of 53 times the amount, calculated at the initial primary percentage rate specified in section 8(2)(a) of the Social Security...

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