The Social Security (Contributions) Regulations 2001

Earnings for the purposes of certificates of exception

45.—(1) For the purposes of section 11(4) of the Act (exception from liability for Class 2 contributions on account of small earnings)(1) the earnings of an applicant for a certificate of exception shall, in respect of any particular year, be treated as less than the amount specified in that section, if it is shown to the satisfaction of the Board that—

(a) in the year preceding the particular year, the earnings of the applicant were less than the amount so specified for the preceding year and that there has since been no material change of circumstances; or

(b) in the particular year the earnings of the applicant are expected to be less than the specified amount.

(2) In paragraph (1)—

(a) “earnings” means the applicant’s net earnings from employment as a self-employed earner; and

(b) in calculating those net earnings—

(i) where the applicant also has earnings from employed earner’s employment in the same year which are shown in the accounts of his business as a receipt of that business,

(ii) where the applicant, as a participant in the scheme arranged under section 2(2) of the Employment and Training Act 1973 (functions of the Secretary of State)(2) and known as “New Deal 50plus”, has received payments of an employment credit, or a training grant, under that scheme, or

(iii) where the applicant, as a participant in a scheme such as is mentioned in section 60(1) of the Welfare Reform Act, has received payments under that scheme,

those earnings or payments shall be disregarded.

(3) Paragraph 2(b)(iii) does not apply to Northern Ireland.

(1)

Section 11(4) was amended by paragraph 12 of Schedule 3 to the Transfer Act and Article 3 of S.I. 2001/477.

(2)

1973 c. 50. Section 2 was substituted by section 25(1) of the Employment Act 1988 (c. 19).