Social Security Contributions and Benefits (Northern Ireland) Act 1992

Class 4 contributions N.I.

15 Class 4 contributions recoverable under the Income Tax Acts. N.I.

(1) Class 4 contributions shall be payable for any tax year in respect of all [F1 profits] which—

(a) are immediately derived from the carrying on or exercise of one or more trades, professions or vocations, F2 ...

(b) [F3 are profits chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005] for the year of assessment corresponding to that tax year [F4 and

(c) are not profits of a trade, profession or vocation carried on wholly outside the United Kingdom].

(2) Class 4 contributions in respect of profits F5 ... shall be payable—

(a) in the same manner as any income tax which is, or would be, chargeable in respect of those profits F5 ... (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 as applied and modified by section 16(1) to (3) of the Great Britain Contributions and Benefits Act.

[F6 (3) The amount of a Class 4 contribution under this section for any tax year is equal to the aggregate of—

(a) the main Class 4 percentage of so much of the profits F7 ... referred to in subsection (1) above (computed in accordance with Schedule 2 to the Great Britain Contributions and Benefits Act, the text of which is set out as Schedule 2 to this Act) as exceeds [F8 £8,424] but does not exceed [F8 £46,350]; and

(b) the additional Class 4 percentage of so much of those profits F7 ... as exceeds [F8 £46,350];

but the figures specified in this subsection are subject to alteration under section 129 of the Administration Act.

(3ZA) For the purposes of this Act—

(a) the main Class 4 percentage is [F9 9] per cent; and

(b) the additional Class 4 percentage is [F10 2] per cent;

but the main Class 4 percentage is subject to alteration under section 129 of the Administration Act.]

[F11 (3A) Where income tax is (or would be) charged on a member of a limited liability partnership in respect of profits F12 ... arising from the carrying on of a trade or profession by the limited liability partnership, Class 4 contributions shall be payable by him if they would be payable were the trade or profession carried on in partnership by the members.]

F13 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) For the purposes of this section the year of assessment which corresponds to a tax year is the year of assessment (within the meaning of the Tax Acts) which consists of the same period as that tax year.

Textual Amendments

F1 Word in s. 15(1) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(2)(a) (with Sch. 2)

F2 Word in s. 15(1) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(2)(b), Sch. 3 (with Sch. 2)

F3 Words in s. 15(1)(b) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(2)(c) (with Sch. 2)

F4 S. 15(1)(c) and preceding word inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(2)(d) (with Sch. 2)

F5 Words in s. 15(2) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(3), Sch. 3 (with Sch. 2)

F6 S. 15(3)(3ZA) substituted (with effect for 2003-04 and subsequent tax years) for s. 15(3) by National Insurance Contributions Act 2002 (c. 19), ss. 3(2), 8(2)

F7 Words in s. 15(3) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(3), Sch. 3 (with Sch. 2)

F8 Sums in s. 15(3) substituted (6.4.2018) by The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018 (S.I. 2018/337), regs. 1, 5

F9 Figure in s. 15(3ZA)(a) substituted (6.4.2011) by National Insurance Contributions Act 2011 (c. 3), ss. 2(1)(a), 13(1)

F10 Figure in s. 15(3ZA)(b) substituted (6.4.2011) by National Insurance Contributions Act 2011 (c. 3), ss. 2(1)(b), 13(1)

F11 S. 15(3A) inserted (6.4.2001) by 2000 c. 12, s. 13; S.I. 2000/3316, art. 2

F12 Words in s. 15(3A) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(3), Sch. 3 (with Sch. 2)

F13 S. 15(4) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 424(4), Sch. 3 (with Sch. 2)

16 Destination of Class 4 contributions. N.I.

F14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 S. 16 repealed (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

17 Exceptions, deferment and incidental matters relating to Class 4 contributions. N.I.

(1) [F15 The Inland Revenue may by regulations] provide—

(a) for excepting persons from liability to pay Class 4 contributions [F16 , or any prescribed part of such contributions,] in accordance with section 15(1) to (3) above and section 16(1) to (3) of the Great Britain Contributions and Benefits Act; or

(b) for deferring any person’s liability,

F17 . . .

(2) Exception from liability, or deferment, under subsection (1) above may, in particular, 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;

(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.

(3) [F15 The Inland Revenue may by regulations] provide for any incidental matters arising out of the payment of any Class 4 contributions recovered by the Inland Revenue, including in particular the return, in whole or in part, of such contributions in cases where—

(a) payment has been made in error; or

(b) repayment ought for any other reason to be made.

(4) [F15 The Inland Revenue may by regulations] provide for any matters arising out of the deferment of liability [F18 to pay Class 4 contributions, or any part of such contributions,] under subsection (1) above, including in particular provision for the amount of a person’s profits or gains (as computed in accordance with the Great Britain Contributions and Benefits Act) to be certified by the Inland Revenue to F19 . . . the person liable.

(5) F20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F21 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F15 Words in s. 17(1)(3)(4) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 17(2)(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F16 Words in s. 17(1) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 23(2)

F17 Words in s. 17(1) repealed (omitted 24.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 7(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F18 Words in s. 17(4) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 23(3)

F19 Words in s. 17(4) repealed (omitted 24.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 7(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F20 S. 17(5) repealed (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

F21 S. 17(6) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 17(4), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

18 Class 4 contributions recoverable under regulations. N.I.

(1) [F22 The Inland Revenue may by regulations make provision] so that where—

(a) an earner, in respect of any one or more employments of his, is treated by regulations under section 2(2)(b) above as being self-employed; and

(b) in any tax year he has earnings from any such employment (one or more) which fall within paragraph (b)(i) of [F23 subsection (8)] of section 11 above but is not liable for a higher weekly rate of Class 2 contributions by virtue of regulations under that subsection; and

(c) the total of those earnings exceeds [F24 £8,424],

he is to be liable, in respect of those earnings, to pay a Class 4 contribution F25 ... .

[F26 (1A) The amount of a Class 4 contribution payable by virtue of regulations under this section is equal to the aggregate of—

(a) the main Class 4 percentage of so much of the total of the earnings referred to in subsection (1)(b) above as exceeds [F24 £8,424] but does not exceed [F24 £46,350]; and

(b) the additional Class 4 percentage of so much of that total as exceeds [F24 £46,350];

but the figures specified in this subsection are subject to alteration under section 129 of the Administration Act.]

(2) [F27 In relation to Class 4 contributions payable by virtue of regulations under this section], [F22 regulations made by the Inland Revenue may]—

(a) apply any of the provisions of Schedule 1 to this Act (except a provision conferring power to make regulations); and

(b) make any such provision as may be made by regulations under that Schedule, except paragraph 6 [F28 or 7BZA].

Textual Amendments

F22 Words in s. 18(1)(2) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 18 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F23 Words in s. 18(1)(b) substituted (with effect for the tax year 2015-16 and subsequent tax years) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 paras. 14, 35

F24 Sums in s. 18(1)(1A) substituted (6.4.2018) by The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018 (S.I. 2018/337), regs. 1, 5

F25 Words in s. 18(1) repealed (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

F26 S. 18(1A) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 3(4), 8(2)

F27 Words in s. 18(2) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 8 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F28 Words in s. 18(2)(b) inserted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 2(3); S.I. 2004/1943, art. 5(a)(ii)

[F29 18A Class 4 contributions: partnerships N.I.

(1) The Treasury may by regulations—

(a) modify the way in which liabilities for Class 4 contributions of a partner in a firm are determined, or

(b) otherwise modify the law relating to Class 4 contributions,

as they consider appropriate to take account of the passing or making of a provision of the Income Tax Acts relating to firms or partners in firms.

(2) “Firm” has the same meaning as in the Income Tax (Trading and Other Income) Act 2005 (and includes a limited liability partnership in relation to which section 863(1) of that Act applies); and “partner” is to be read accordingly and includes a former partner.

(3) Regulations under this section may have retrospective effect; but they may not have effect before the beginning of the tax year in which they are made.]

Textual Amendments

F29 S. 18A inserted (13.5.2014) by National Insurance Contributions Act 2014 (c. 7), s. 13(5)(7)