The Social Security (Contributions) Regulations 2001

1. Introductory Text

2. PART 1 GENERAL

   1. 1. Citation, commencement and interpretation

3. PART 2 ASSESSMENT OF EARNINGS RELATED CONTRIBUTIONS

   1. 2. Earnings periods

   2. 3. Earnings period for earnings normally paid or treated as paid at regular intervals

   3. 4. Earnings period for earnings normally paid otherwise than at regular intervals and not treated as paid at regular intervals

   4. 5. Earnings period for sums deemed to be earnings by virtue of regulations made under section 112 of the Act

   5. 6. Earnings period for earnings to be aggregated where the earnings periods for those earnings otherwise would be of different lengths

   6. 7. Treatment of earnings paid otherwise than at regular intervals

   7. 8. Earnings periods for directors

   8. 9. Earnings period for statutory maternity pay and statutory sick pay paid by the Board

   9. 10. Earnings limits and thresholds

   10. 11. Prescribed equivalents

   11. 12. Calculation of earnings-related contributions

   12. 13. General provisions as to aggregation

   13. 14. Aggregation of earnings paid in respect of separate employed earner’s employments under the same employer

   14. 15. Aggregation of earnings paid in respect of different employed earner’s employments by different persons and apportionment of contribution liability

   15. 16. Aggregation of earnings paid after pensionable age

   16. 17. Apportionment of single payment of earnings in respect of different employed earner’s employments by different secondary contributors

   17. 18. Change of earnings period

   18. 19. Holiday payments

   19. 20. Joint employment of husband and wife

   20. 21. Annual maximum

   21. 22. Payment to be treated as earnings

   22. 23. Manner of making sickness payments treated as remuneration

   23. 24. Calculation of earnings for the purposes of earnings-related contributions

   24. 25. Payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions

   25. 26. Certain payments by trustees to be disregarded

   26. 27. Payments to directors which are to be disregarded

   27. 28. Liability for Class 1 contributions in respect of earnings normally paid after pensionable age

   28. 29. Liability for Class 1 contributions of persons over pensionable age

   29. 30. Abnormal pay practices

   30. 31. Practices avoiding or reducing liability

4. PART 3 CLASS 1A CONTRIBUTIONS

   1. 32. Interpretation for the purposes of this Part

   2. 33. Exception from liability to pay Class 1A contributions in respect of cars made available to members of an employed earner’s family or household in certain circumstances

   3. 34. Class 1A contributions payable where two or more cars are made available concurrently

   4. 35. Reduction of certain Class 1A contributions in the case of a car provided or made available by reason of two or more employments or to two or more employed earners

   5. 36. Reduction of certain Class 1A contributions on account of the number of employments in the cases of something provided or made available by reason of two or more employments and of something provided or made available to two or more employed earners

   6. 37. Reduction of certain Class 1A contributions in respect of cars made available to disabled employed earners

   7. 38. Exception from liability to pay Class 1 contributions in respect of cars made available to disabled employed earners only for business and home to work travel

   8. 39. Calculation of Class 1A contributions

   9. 40. Prescribed emoluments in respect of which Class 1A contributions not payable

5. PART 4 CLASS 1B CONTRIBUTIONS

   1. 41. Calculation of Class 1B contributions

   2. 42. Exception from liability to pay Class 1B contributions

6. PART 5 EXCEPTION FROM LIABILITY FOR CLASS 2 CONTRIBUTIONS, PROVISIONS ABOUT CLASS 3 CONTRIBUTIONS, AND REALLOCATION AND REFUND OF CONTRIBUTIONS (OTHER THAN CLASS 4)

   1. 43. Exception from liability for Class 2 contributions

   2. 44. Application for, and duration and cancellation of, certificates of exception

   3. 45. Earnings for the purposes of certificates of exception

   4. 46. Certificates of exception—exception from liability for, and entitlement to pay, Class 2 contributions

   5. 47. Return of Class 2 contributions paid by low earners

   6. 48. Class 3 contributions

   7. 49. Precluded Class 3 contributions

   8. 50. Class 3 contributions not paid within prescribed periods

   9. 51. Disposal of contributions not properly paid

   10. 52. Return of contributions

   11. 53. Return of contributions: further provisions

   12. 54. Return of Class 1 contributions paid at the non-contracted-out rate instead of at the contracted-out rate

   13. 55. Repayment of Class 1A contributions

   14. 56. Return of precluded Class 3 contributions

   15. 57. Calculation of return of contributions

   16. 58. Reallocation of contributions for benefit purposes

   17. 59. Circumstances in which two-year limit for refunds of Class 1, 1A or 1B contributions not to apply

7. PART 6 LATE PAID AND UNPAID CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS)

   1. 60. Treatment for the purpose of contributory benefit of unpaid primary Class 1 contributions where no consent, connivance or negligence on the part of the primary contributor

   2. 61. Voluntary Class 2 contributions not paid within permitted period

   3. 62. Payment of contributions after death of contributor

   4. 63. Class 2 contributions paid late in accordance with a payment undertaking

   5. 64. Class 2 and Class 3 contributions paid within a month from notification of amount of arrears

   6. 65. Class 2 and Class 3 contributions paid late through ignorance or error

8. PART 7 COLLECTION OF CONTRIBUTIONS (OTHER THAN CLASS 4 CONTRIBUTIONS) AND RELATED MATTERS

   1. 66. Notification of national insurance numbers to secondary contributors

   2. 67. Collection and recovery of earnings-related contributions, and Class 1B contributions

   3. 68. Other methods of collection and recovery of earnings-related contributions

   4. 69. Transfer of liability from secondary contributor to employed earner: share option gains

   5. 70. Payment of Class 1A contributions

   6. 71. Due date for payment of a Class 1A contribution

   7. 72. Provisions relating to a Class 1A contribution due on succession to business

   8. 73. Provisions relating to a Class 1A contribution due on cessation of business

   9. 74. Employer failing to pay a Class 1A contribution

   10. 75. Specified amount of a Class 1A contribution

   11. 76. Interest on an overdue Class 1A contribution

   12. 77. Payment of interest on a repaid Class 1A contribution

   13. 78. Repayment of interest paid on a Class 1A contribution

   14. 79. Remission of interest on a Class 1A contribution

   15. 80. Return by employer

   16. 81. Penalties for failure to make a return and incorrect returns

   17. 82. Application of the Management Act to penalties for failure to make a return and incorrect returns

   18. 83. Set-off of Class 1A contributions falling to be repaid against earnings-related contributions

   19. 84. Special provisions relating to primary Class 1 contributions

   20. 85. Exception in relation to earnings to which regulation 84 applies

   21. 86. Special provisions relating to culpable employed earners and to secondary contributors or employers exempted by treaty etc., from enforcement of the Act or liability under it

   22. 87. Notification of commencement or cessation of payment of Class 2 or Class 3 contributions

   23. 88. Notification of change of address

   24. 89. Method of, and time for, payment of Class 2 and Class 3 contributions etc.

   25. 90. Arrangements approved by the Board for method of, and time for, payment of Class 2 and Class 3 contributions

9. PART 8 CLASS 4 CONTRIBUTIONS

   1. 91. Exception from Class 4 liability of persons over pensionable age and persons not resident in the United Kingdom

   2. 92. Exception of divers and diving supervisors from liability for Class 4 contributions

   3. 93. Exception of persons under the age of 16 from liability for Class 4 contributions

   4. 94. Exception from Class 4 liability by reference to Class 1 contributions paid on earnings chargeable to income tax under Schedule D

   5. 95. Deferment of Class 4 liability where such liability is in doubt

   6. 96. Application for deferment of Class 4 liability

   7. 97. General conditions for application for, and issue of, certificates of exception and deferment

   8. 98. Revocation of certificates of exception and deferment

   9. 99. Calculation of liability for, and recovery of, Class 4 contributions after issue of certificate of deferment

   10. 100. Annual maximum of Class 4 contributions due under section 15 of the Act

   11. 101. Disposal of Class 4 contributions under section 15 of the Act which are not due

   12. 102. Repayment of Class 4 contributions under section 15 of the Act which are not due

   13. 103. Class 4 liability of earners treated as self-employed earners who would otherwise be employed earners

   14. 104. Notification of national insurance number and recording of category letter on deductions working sheet

   15. 105. Calculation of earnings for the purposes of special Class 4 contributions

   16. 106. Notification and payment of special Class 4 contributions due

   17. 107. Recovery of deferred Class 4 and special Class 4 contributions after appeal, claim or further assessment under the Income Tax Acts or appeal under section 8 of the Transfer Act

   18. 108. Annual maximum of special Class 4 contribution

   19. 109. Disposal of special Class 4 contributions paid in excess or error

   20. 110. Return of special Class 4 contributions paid in excess or error

10. PART 9 SPECIAL CLASSES OF EARNERS

    1. Case A— Airmen

       1. 111. Interpretation

       2. 112. Modification of employed earner’s employment

       3. 113. Application of the Act and regulations

    2. Case B— Continental Shelf

       1. 114. Application to employment in connection with continental shelf of Part I of the Act and so much of Part VI of the Act as relates to contributions

    3. Case C— Mariners

       1. 115. Interpretation

       2. 116. Modification of section 162(5) of the Administration Act

       3. 117. Conditions of domicile or residence

       4. 118. Modification of employed earner’s employment

       5. 119. Modification of section 9(2) of the Act

       6. 120. Earnings periods for mariners and apportionment of earnings

       7. 121. Calculation of earnings-related contributions for mariners

       8. 122. Prescribed secondary contributors

       9. 123. Payments to be disregarded

       10. 124. Application of the Act and regulations

       11. 125. Modification in relation to share fishermen of Part I of the Act and so much of Part VI of the Act as relates to contributions

    4. Case D— Married Women and Widows

       1. 126. Interpretation

       2. 127. Elections by married women and widows

       3. 128. Duration of effect of election

       4. 129. Continuation of elections under regulation 91 of the 1975 Regulations

       5. 130. Continuation of elections on widowhood

       6. 131. Reduced rate

       7. 132. Class 3 contributions

       8. 133. Certificates of election

       9. 134. Special transitional provisions consequent upon passing of the Social Security Pensions Act 1975

       10. 135. Deemed election of married women and widows excepted from contribution liability under the National Insurance Act 1965

       11. 136. Special transitional provisions regarding deemed elections

       12. 137. Application of regulations 126 to 134 to elections and revocation of elections deemed made under regulations 135 and 136

       13. 138. Savings

       14. 139. Modification of the Act

    5. Case E— Members of the Forces

       1. 140. Establishments and organisations of which Her Majesty’s forces are taken to consist

       2. 141. Treatment of serving members of the forces as present in Great Britain

       3. 142. Treatment of contributions paid after that date

       4. 143. Special provisions concerning earnings-related contributions

       5. 144. Application of the Act and regulations

    6. Case F— Residence and Persons Abroad

       1. 145. Condition as to residence or presence in Great Britain or Northern Ireland

       2. 146. Payment of contributions for periods abroad

       3. 147. Class 2 and Class 3 contributions for periods abroad

       4. 148. Conditions of payment of Class 2 or Class 3 contributions for periods abroad

    7. CASE G— VOLUNTEER DEVELOPMENT WORKERS

       1. 149. Interpretation

       2. 150. Certain volunteer development workers to be self-employed earners

       3. 151. Option to pay Class 2 contributions

       4. 152. Special provisions as to residence, rate, annual maximum and method of payment

       5. 153. Late paid contributions

       6. 154. Modifications of the Act and these Regulations

11. PART 10 MISCELLANEOUS PROVISIONS

    1. 155. Treatment of contribution week falling in two years

    2. 156. Northern Ireland

    3. 157. Revocations

12. Signature

13. 1. SCHEDULE 1

       PROVISIONS CONFERRING POWERS EXERCISED IN MAKING THESE REGULATIONS

       1. PART I POWERS EXERCISED BY THE TREASURY

       2. PART II POWERS EXERCISED BY THE COMMISSIONERS OF INLAND REVENUE

    2. SCHEDULE 2

       CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS IN PARTICULAR CASES

    3. SCHEDULE 3

       PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS

       1. PART I INTRODUCTORY

       2. PART II PAYMENTS IN KIND

       3. PART III PAYMENTS BY WAY OF READILY CONVERTIBLE ASSETS NOT DISREGARDED AS PAYMENTS IN KIND

       4. PART IV PAYMENTS BY WAY OF SPECIFIC ASSETS NOT DISREGARDED AS PAYMENTS IN KIND

       5. PART V CERTAIN NON-CASH VOUCHERS TO BE DISREGARDED AS PAYMENTS IN KIND

       6. PART VI PENSIONS AND PENSION CONTRIBUTIONS

       7. PART VII PAYMENTS IN RESPECT OF TRAINING AND SIMILAR COURSES

       8. PART VIII TRAVELLING, RELOCATION AND OTHER EXPENSES AND ALLOWANCES OF THE EMPLOYMENT

       9. PART IX SHARE INCENTIVES

       10. PART X MISCELLANEOUS AND SUPPLEMENTAL

    4. SCHEDULE 4

       PROVISIONS DERIVED FROM THE INCOME TAX ACTS AND THE INCOME TAX (EMPLOYMENTS) REGULATIONS 1993

       1. PART I GENERAL

       2. PART II DEDUCTION OF EARNINGS-RELATED CONTRIBUTIONS

       3. PART III PAYMENT AND RECOVERY OF EARNINGS-RELATED CONTRIBUTIONS, CLASS 1A CONTRIBUTIONS AND CLASS 1B CONTRIBUTIONS, ETC.

       4. PART IV ASSESSMENT AND DIRECT COLLECTION

    5. SCHEDULE 5

       ELECTIONS ABOUT SHARE OPTION GAINS

    6. SCHEDULE 6

       1. PART I PRESCRIBED ESTABLISHMENTS AND ORGANISATIONS FOR THE PURPOSES OF SECTION 116(3) OF THE ACT

       2. PART II ESTABLISHMENTS AND ORGANISATIONS OF WHICH HER MAJESTY'S FORCES SHALL NOT CONSIST

    7. SCHEDULE 7

       CORRESPONDING NORTHERN IRELAND ENACTMENTS

       1. PART I ENACTMENTS CORRESPONDING TO PRIMARY LEGISLATION APPLICABLE TO GREAT BRITAIN

       2. PART II ENACTMENTS CORRESPONDING TO SUBORDINATE LEGISLATION APPLICABLE TO GREAT BRITAIN

    8. SCHEDULE 8

       REVOCATIONS

       1. PART I REVOCATIONS APPLICABLE TO GREAT BRITAIN OR TO THE UNITED KINGDOM

       2. PART II REVOCATIONS APPLICABLE TO NORTHERN IRELAND

14. Explanatory Note