The Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006

Citation, commencement, interpretation and extent

1.—(1) This Order may be cited as the Social Security (Reduced Rates of Class 1 Contributions, Rebates and Minimum Contributions) Order 2006 and shall come into force on 6th April 2007.

(2) In this Order—

“the 1993 Act” means the Pension Schemes Act 1993;

“the Northern Ireland Act” means the Pension Schemes (Northern Ireland) Act 1993;

“the low earnings threshold”, in relation to a tax year, means the low earnings threshold for that tax year as specified in—

(a)

section 44A of the Social Security Contributions and Benefits Act 1992(1) (deemed earnings factors); or

(b)

in relation to Northern Ireland, section 44A(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992(2) (deemed earnings factors);

“qualifying earnings factor”, in relation to a tax year, has the same meaning as in—

(a)

section 122(1) of the Social Security Contributions and Benefits Act 1992 (interpretation); or

(b)

in relation to Northern Ireland, section 121(1) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (interpretation);

“the upper earnings threshold” means 3LET minus 2QEF, where—

(a)

3LET means the amount produced by multiplying the low earnings threshold by 3; and

(b)

2QEF means the amount produced by doubling the qualifying earnings factor and rounding the resulting figure to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100);

“relevant tax year” means any of the following tax years—

(a)

2007-2008;

(b)

2008-2009;

(c)

2009-2010;

(d)

2010-2011;

(e)

2011-2012.

(3) These provisions of this Order extend to England and Wales and Scotland—

(a) articles 2 to 4;

(b) this article, and the Schedules, so far as they relate to articles 2 to 4.

(4) These provisions of this Order extend to Northern Ireland—

(a) articles 5 to 7;

(b) this article, and the Schedules, so far as they relate to articles 5 to 7.

(1)

1992 c. 4. Section 44A was inserted by section 30(3) of the 2000 Act and amended by paragraph 11 of Schedule 1 to the 2002 Act and paragraph 2 of the Schedule to S.I. 2002/1457.

(2)

1992 c. 7. Section 44A was inserted by section 29(3) of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4).