Social Security Act 1975

9 Class 4 contributions recoverable under Tax Acts

(1) Class 4 contributions shall be payable in respect of all annual profits or gains immediately derived from the carrying on or exercise of one or more trades, professions or vocations, being profits or gains chargeable to income tax under Case I or Case II of Schedule D for any year of assessment beginning on or after 6th April 1975; and the contributions shall be payable—

(a) in the same manner as any income tax which is, or would be, chargeable in respect of those profits or gains (whether or not income tax in fact falls to be paid); and

(b) by the person on whom the income tax is (or would be) charged,

in accordance with assessments made from time to time under the Income Tax Acts.

(2) A Class 4 contribution for any tax year shall be an amount equal to 8 per cent. of so much of the profits or gains referred to in subsection (1) above (as computed in accordance with Schedule 2 to this Act) as exceeds £1,600 and does not exceed £3,600.

(3) Except as provided by or under subsection (9) and section 10 below and sections 9(6) and 10 of the [1975 c. 15.] Social Security (Northern Ireland) Act 1975 and except as provided by Schedule 2 to this Act, all the provisions of the Income Tax Acts as they have effect from time to time (including, but without prejudice to the generality of the foregoing, provisions as to assessment, collection, repayment and recovery, and the provisions of Part X of the [1970 c. 9.] Taxes Management Act 1970 (penalties)) shall with the necessary modifications apply in relation to Class 4 contributions under this Act and the said Act of 1975 as if they were income tax chargeable under Case I or Case II of Schedule D.

This subsection and subsections (4) to (6) below extend to Northern Ireland.

(4) Schedule 2 to this Act has effect (without prejudice to subsection (3) above) for the application or modification, in relation to Class 4 contributions under this Act and the [1975 c. 15.] Social Security (Northern Ireland) Act 1975, of certain provisions of the Income Tax Acts, and the exclusion of other provisions, and generally with respect to the contributions.

(5) The Inland Revenue shall, at such times and in such manner as the Treasury may direct, account to the Secretary of State for, and pay to him, the sums estimated by the Inland Revenue (in the manner so directed) to have been collected by them as Class 4 contributions under this section and section 9 of the Social Security (Northern Ireland) Act 1975.

(6) So much of any money received by the Secretary of State under subsection (5) as is estimated by him, in accordance with any directions of the Treasury, to represent Class 4 contributions collected from persons in Northern Ireland shall be paid over by him to the Northern Ireland Department.

(7) The Secretary of State may by regulations made with the concurrence of the Inland Revenue provide—

(a) for excepting persons from liability to pay Class 4 contributions in accordance with subsections (1) to (4) above; or

(b) for deferring any person's liability,

and may certify from time to time to the Inland Revenue the persons who are excepted from liability, or whose liability is to be deferred, and who accordingly are not required (except in accordance with the regulations) to be assessed for contributions.

(8) Exception from liability, or deferment, under subsection (7) above may (without prejudice to the generality of that subsection) be by reference—

(a) to a person otherwise liable for contributions being under a prescribed age at the beginning of a tax year ;

(b) to a person having attained pensionable age and retired from regular employment;

(c) to a person being in receipt of earnings in respect of which primary Class 1 contributions are, or may be, payable; or

(d) to a person not satisfying prescribed conditions as to residence or presence in the United Kingdom.

(9) The Secretary of State may, by regulations made with the concurrence of the Inland Revenue—

(a) provide, in relation to Class 4 contributions recovered by the Inland Revenue, for any incidental matters arising out of the payment of such contributions, including in particular their return in whole or in part where payment has been made in error or repayment ought for any other reason to be made;

(b) provide, in relation to cases where liability for such contributions is to be deferred in pursuance of regulations made under subsection (7) above, for any matters arising out of the deferment, including in particular provision for the amount of a person's profits or gains (as computed under Schedule 2 to this Act) to be certified by the Inland Revenue to the Secretary of State and the person liable ;

but so that no such certificate as is referred to in paragraph (b) above shall relate to a person's profits or gains so far as they exceed whatever is for the time being the higher of the two money sums specified in subsection (2) above.