The Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1995

Statutory Rules of Northern Ireland

1995 No. 79

SOCIAL SECURITY

The Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1995

Made

8th March 1995

Coming into operation

6th April 1995

Whereas the Secretary of State for Social Security has made an order(1) under sections 141(4) and (5), 142(2), 145(2) and 189(1) and (3) of the Social Security Administration Act 1992(2) and section 2(2) and (8) of the Social Security Act 1993(3):

Now, therefore, the Department of Health and Social Services for Northern Ireland, in exercise of the powers conferred on it by section 129 of the Social Security Administration (Northern Ireland) Act 1992(4) and Article 4(3) of the Social Security (Northern Ireland) Order 1993(5) and of all other powers enabling it in that behalf, and with the consent of the Department of Finance and Personnel in so far as its consent is required, hereby makes the following order:

Citation, commencement and interpretation

1.—(1) This order may be cited as the Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1995 and shall come into operation on 6th April 1995.

(2) In this order “the Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992(6).

(3) The Interpretation Act (Northern Ireland) 1954(7) shall apply to this order as it applies to a Measure of the Northern Ireland Assembly.

Weekly earnings and percentage rate figures for secondary earnings brackets

2.  In section 9(3) of the Act(8) (secondary earnings brackets and appropriate percentage rates)—

(a) for the weekly earnings figure £99.99 and the percentage rate figure 3.6, specified in respect of Bracket 1, there shall be substituted respectively the figures £104.99 and 3;

(b) for the weekly earnings figures £100.00 and £144.99 and the percentage rate figure 5.6, specified in respect of Bracket 2,. there shall be substituted respectively the figures £105.00, £149.99 and 5;

(c) for the weekly earnings figures £145.00 and £199.99 and the percentage rate figure 7.6, specified in respect of Bracket 3, there shall be substituted respectively the figures £150.00, £204.99 and 7;

(d) for the weekly earnings figure £200.00 specified in respect of Bracket 4, there shall be substituted the figure £205.00.

Rate of, and small earnings exception from, Class 2 contributions

3.  In section 11 of the Act(9) (Class 2 contributions)—

(a) in subsection (1) (weekly rate) for “£5.65” there shall be substituted “£5.75”;

(b) in subsection (4) (small earnings exception) for “£3,200” there shall be substituted “£3,260”.

Amount of Class 3 contributions

4.  In section 13(1) of the Act(10) (amount of Class 3 contributions) for “£5.55” there shall be substituted “£5.65”.

Lower and upper limits for Class 4 contributions

5.  In sections 15(3) and 18(1) of the Act(11) (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—

(a) for “£6,490” (lower limit) wherever it appears there shall be substituted in each of those sections “£6,640”;

(b) for “£22,360” (upper limit) there shall be substituted in each of those sections “£22,880”.

Prescribed percentage of estimated benefit expenditure

6.  Article 4(3) of the Social Security (Northern Ireland) Order 1993 shall have effect with respect to the tax year 1995-96 and the prescribed percentage of estimated benefit expenditure for the financial year ending in that tax year shall be 10 per cent.

Sealed with the Official Seal of the Department of Health and Social Services for Northern Ireland on

L.S.

W. G. Purdy

Assistant Secretary

8th March 1995.

The Department of Finance and Personnel hereby consents to Article 6 of the foregoing order.

Sealed with the Official Seal of the Department of Finance and Personnel on

L.S.

D. Thomson

Assistant Secretary

8th March 1995.

Explanatory Note

(This note is not part of the Order.)

This order corresponds to an order (S.I. 1995/561) made by the Secretary of State for Social Security under sections 141(4) and (5), 142(2), 145(2) and 189(1) and (3) of the Social Security Administration Act 1992 and section 2(2) and (8) of the Social Security Act 1993.

The order increases the amounts of weekly earnings specified in, and reduces certain percentage rates appropriate to, the secondary earnings brackets in section 9(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Act”), which determine the amount of secondary Class 1 contributions payable under the Act (Article 2). The amounts of weekly earnings are increased, in respect of Bracket 1 from £99.99 to £104.99, in respect of Bracket 2 from £100.00 and £144.99 to £105.00 and £149.99 respectively, in respect of Bracket 3 from £145.00 and £199.99 to £150.00 and £204.99 respectively and in respect of Bracket 4 from £200.00 to £205.00. The percentage rates are reduced, in respect of Bracket 1 from 3.6 to 3 per cent., in respect of Bracket 2 from 5.6 to 5 per cent. and in respect of Bracket 3 from 7.6 to 7 per cent.

The order increases the rate of Class 2 and amount of Class 3 contributions specified in sections 11(1) and 13(1) of the Act from £5.65 to £5.75 and from £5.55 to £5.65 respectively (Articles 3(a) and 4). It also increases, from £3,200 to £3,260, the amount of earnings specified in section 11(4) of the Act below which an earner may be excepted from liability for Class 2 contributions (Article 3(b)).

The order increases, from £6,490 to £6,640 and from £22,360 to £22,880 respectively. the lower and upper limits of profits or gains specified in sections 15(3) and 18(1) of the Act between which Class 4 contributions are payable (Article 5).

The order provides for Article 4(3) of the Social Security (Northern Ireland) Order 1993 to have effect for the tax year 1995-96. It also provides that the amount of appropriated money to be paid into the Northern Ireland National Insurance Fund in that year shall not exceed in aggregate 10 per cent. of the estimated benefit expenditure for the financial year ending in that tax year (Article 6).

(1)

S.I. 1995/561

(2)

1992 c. 5

(3)

1993 c. 3

(4)

1992 c. 8

(5)

S.I. 1993/592 (N.I. 2)

(6)

1992 c. 7: relevant amending provision is S.R. 1994 No. 79

(7)

1954 c. 33 (N.I.)

(8)

Section 9(3) was further amended by Article 2 of S.R. 1994 No. 79

(9)

Section 11(1) and (4) was further amended by Article 3 of S.R. 1994 No. 79

(10)

Section 13(1) was further amended by Article 4 of S.R. 1994 No. 79

(11)

Sections 15(3) and 18(1) were further amended by Article 5 of S.R. 1994 No. 79