The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018

PART 1 General

Citation and commencement

1.  These Regulations may be cited as the Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018 and come into force on 6th April 2018.

PART 2 Rates, limits and thresholds for National Insurance contributions

Interpretation

2.  In this Part—

“the Act” means the Social Security Contributions and Benefits Act 1992; and

“the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

Rate of and small profits threshold for Class 2 contributions

3.  In section 11 of the Act(1) and the Northern Ireland Act(2) (Class 2 contributions)—

(a) in subsections (2) and (6) for “£2.85” substitute “£2.95”; and

(b) in subsection (4) (small profits threshold) for “£6,025” substitute “£6,205”.

Amount of a Class 3 contribution

4.  In section 13(1) of the Act(3) and the Northern Ireland Act(4) (Class 3 contributions) for “£14.25” substitute “£14.65”.

Lower and upper limits of profits for Class 4 contributions

5.  In sections 15(3) and 18(1) and (1A) of the Act(5) and the Northern Ireland Act(6) (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—

(a) for “£8,164” (lower limit) in each place where it appears substitute “£8,424”; and

(b) for “£45,000” (upper limit) in each place where it appears substitute “£46,350”.

Amendments to the Social Security (Contributions) Regulations 2001

6.  The Social Security (Contributions) Regulations 2001(7) are amended as follows.

7.  In regulation 10 (earnings limits and thresholds)—

(a) in the introductory words, for “2016” substitute “2018”;

(b) in paragraph (a) (lower earnings limit: primary Class 1 contributions) for “£113” substitute “£116”;

(c) in paragraph (b) (upper earnings limit: primary Class 1 contributions) for “£866” substitute “£892”;

(d) in paragraph (c) (primary threshold: primary Class 1 contributions) for “£157” substitute “£162”;

(e) in paragraph (d) (secondary threshold: secondary Class 1 contributions) for “£157” substitute “£162”;

(f) in paragraph (e) (upper secondary threshold: secondary Class 1 contributions in relation to the Under 21 group) for “£866” substitute “£892”; and

(g) in paragraph (f) (upper secondary threshold: secondary Class 1 contributions in relation to relevant apprentices) for “£866” substitute “£892”.

8.  In regulation 11 (prescribed equivalents)—

(a) in paragraph (2A)—

(i) in sub-paragraph (a) for “£3,750” substitute “£3,863”; and

(ii) in sub-paragraph (b) for “£45,000” substitute “£46,350”;

(b) in paragraph (3)—

(i) in sub-paragraph (a) for “£680” substitute “£702”; and

(ii) in sub-paragraph (b) for “£8,164” substitute “£8,424”;

(c) in paragraph (3A)—

(i) in sub-paragraph (a) for “£680” substitute “£702”; and

(ii) in sub-paragraph (b) for “£8,164” substitute “£8,424”;

(d) in paragraph (3B)—

(i) in sub-paragraph (a) for “£3,750” substitute “£3,863”; and

(ii) in sub-paragraph (b) for “£45,000” substitute “£46,350”; and

(e) in paragraph (3C)—

(i) in sub-paragraph (a) for “£3,750” substitute “£3,863”; and

(ii) in sub-paragraph (b) for “£45,000” substitute “£46,350”.

PART 3 National Insurance Funds

Prescribed percentage of estimated benefit expenditure – Great Britain

9.  Section 2(2) of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament) has effect with respect to the tax year 2018-19 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent.

Prescribed percentage of estimated benefit expenditure – Northern Ireland

10.  Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into Northern Ireland National Insurance Fund out of appropriated money) has effect with respect to the tax year 2018-19 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent.

Andrew Stephenson

Rebecca Harris

Two of the Lords Commissioners of Her Majesty’s Treasury

8th March 2018