C1C3C4C5C6Part I Contributions

Annotations:
Modifications etc. (not altering text)
C1

Pt. I (ss. 1-19): power to modify conferred (7.2.1994) by 1993 c. 49, s. 35, Sch. 1 Pt. I para. 5(3)(d); S.R. 1994/17, art. 2

Pt. I (ss. 1-19) amended (1.4.1999) by 1999 c. 2, s. 3(1)(7); S.I. 1999/527, art. 2(b), Sch. 2

C4

Pt. 1 modified (6.4.2022 for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), s. 2(3) (with Sch. para. 8)

C5

Pt. 1 modified (6.4.2022 for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 5(1)(2)(4) (with Sch. para. 8)

C6

Pt. 1 applied (with modifications) (6.4.2023 for the tax year 2023-24) by National Insurance Contributions (Reduction in Rates) Act 2023 (c. 57), Sch. para. 1(1)(2)(4)

F1Class 1B contributions

Annotations:
Amendments (Textual)
F1

S. 10A and preceding cross-heading inserted (9.9.1998 for the purpose only of making regulations or orders and otherwise 6.4.1999) by The Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)), art. 50; S.R. 1998/312, art. 2(b), Sch. Pt. II

C210A Class 1B contributions.

1

Where for any tax year a person is accountable to the Inland Revenue in respect of income tax on F8general earnings of his employees in accordance with a PAYE settlement agreement, a Class 1B contribution shall be payable by him for that tax year in accordance with this section.

2

The Class 1B contribution referred to in subsection (1) above is payable in respect of—

a

the amount of any of F7the general earnings included in the PAYE settlement agreement which are chargeable emoluments; and

b

the total amount of income tax in respect of which the person is accountable for the tax year in accordance with the PAYE settlement agreement.

3

The amount of the Class 1B contribution referred to in subsection (1) above shall be the Class 1B percentage of the aggregate of the amounts mentioned in paragraphs (a) and (b) of subsection (2) above.

4

F6General earnings are chargeable emoluments for the purposes of subsection (2) above if, apart from section F96(2) or 10(6) above, the person accountable in accordance with the PAYE settlement agreement would be liable or entitled to pay secondary Class 1 contributions or Class 1A contributions in respect of them.

5

Where—

a

the PAYE settlement agreement was entered into after the beginning of the tax year; and

b

Class 1 contributions were due in respect of any F5general earnings before it was entered into,

those F5general earnings shall not be taken to be included in the PAYE settlement agreement.

F26

In subsection (3) above “the Class 1B percentage” means a percentage rate equal to F4the secondary percentage for the tax year in question.

7

F3The Treasury may by regulations provide for persons to be excepted in prescribed circumstances from liability to pay Class 1B contributions.