The Social Security (Contributions) (Amendment) Regulations 2005

Statutory Instruments

2005 No. 166

SOCIAL SECURITY

The Social Security (Contributions) (Amendment) Regulations 2005

Made

1st February 2005

Laid before Parliament

1st February 2005

Coming into force

6th April 2005

The Treasury, in exercise of the powers conferred upon them by sections 5, 122(1) and 175(3) and (4) of the Social Security Contributions and Benefits Act 1992(1) and sections 5, 121(1) and 171(3), (4) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992(2) make the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Social Security (Contributions) (Amendment) Regulations 2005.

(2) These Regulations shall come into force on 6th April 2005.

Amendments to the Social Security (Contributions) Regulations 2001

2.  The Social Security (Contributions) Regulations 2001(3) are amended as follows.

3.  Amend regulation 10 (earnings limits and thresholds)(4) as follows—

(a) for “2004” substitute “2005”;

(b) in paragraph (a) for “£79” substitute “£82”;

(c) in paragraph (b) for “£610” substitute “£630”; and

(d) in paragraphs (c) and (d) for “£91” substitute “£94”.

4.  Amend regulation 11(3) (prescribed equivalents)( ) as follows -

(a) in paragraph (a) for “£395” substitute “£408”; and

(b) in paragraph (b) for “£4,745” substitute “£4,895”.

Nick Ainger

Joan Ryan

Two of the Lords Commissioners of Her Majesty’s Treasury

1st February 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004: “the principal Regulations”).

Regulation 1 provides for the citation and commencement of the Regulations.

Regulation 2 introduces the changes made to the principal Regulations.

Regulation 3 amends regulation 10 of the principal Regulations to specify the levels of the lower and upper earnings limits for primary Class 1 contributions and the primary and secondary thresholds for primary and secondary Class 1 contributions for the tax year beginning 6th April 2005.

Regulation 4 amends regulation 11(3) of the principal Regulations to provide for the equivalents of the primary and secondary thresholds where the earnings period is a month or a year.

These regulations do not impose any new costs on business.

(1)

1992 c. 4; section 5 was substituted by paragraph 1 of Part 1 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30). Section 122(1) is cited because of the meaning given to “prescribe”. Section 175(4) was substituted by paragraph 29(4) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c. 2).

(2)

1992 c. 7; section 5 was substituted by paragraph 1 of Part 1 of Schedule 10 to the Welfare Reform and Pensions Act 1999. Section 121(1) is cited because of the meaning given to “prescribe”. Section 171(10) was substituted by paragraph 28(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671).

(3)

S.I. 2001/1004: relevant amending instruments are S.I. 2002/238, 2003/193 and 2004/220.

(4)

Regulation 10 was amended by regulation 3 of S.I. 2002/238, regulation 5 of S.I. 2003/193 and regulation 3 of S.I. 2004/220.