C2C4C3C5C6Part I Contributions
Pt. 1 modified (6.4.2001) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), regs. 1(1), 125 (as amended (6.4.2017) by S.I. 2017/416, regs. 1(2), 2; (6.4.2019) by S.I. 2019/555, regs. 1(2), 2)
Pt. 1 modified (13.9.2001) by The New Deal (Lone Parents) (Miscellaneous Provisions) Order 2001 (S.I. 2001/2915), arts. 1(1), 2
Pt. 1 modified (for the tax year 2022-23) by Health and Social Care Levy Act 2021 (c. 28), s. 5(2) (with s. 7(2)) (which Act was repealed (25.10.2022) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), s. 1 (with savings and transitional modifications of Pt. 1 in s. 2, Sch. paras. 1-3, 5))
Pt. 1 modified (in relation to the tax year 2023-24) by National Insurance Contributions (Reduction in Rates) Act 2023 (c. 57), Sch. para. 1(1)-(3)
Class 1A contributions
10F1Class 1A contributions F29...
1
Where—
F3a
for any tax year an earner is chargeable to income tax under ITEPA 2003 on an amount of general earnings received by him from any employment (“the relevant employment”),
F4b
the relevant employment is both—
i
employed earner’s employment, and
ii
an employment, other than F19lower-paid employment as a minister of religion, within the meaning of the benefits code (see Chapter 2 of Part 3 of ITEPA 2003), and
c
the whole or a part of the F5general earnings falls, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner,
a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the F6general earnings as falls to be so left out of account.
F201A
A Class 1A contribution is payable for a tax year, in accordance with this section, in respect of an earner and the amount of a termination award if and so far as—
a
that amount counts as employment income of the earner under section 403 of ITEPA 2003 (charge on termination payments or benefits), and
b
the earner is chargeable to income tax on that amount for the tax year by virtue of that section.
1B
No Class 1A contribution is payable under subsection (1A) in respect of an amount so far as it is an amount of earnings in respect of which Class 1 contributions are payable.
1C
No Class 1A contribution is payable under subsection (1A) unless the employment which is terminated is employed earner's employment.
2
Subject to F28sections 10ZA and 10ZBA, a Class 1A contribution F21payable under subsection (1) for any tax year shall be payable by—
a
the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or
b
if paragraph (a) above does not apply, the person who, if the F7general earnings in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.
3
In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment.
F223A
A Class 1A contribution payable under subsection (1A) is payable by the person who, if the amount in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.
4
F244A
The amount of the Class 1A contribution payable under subsection (1A) in respect of an amount is the Class 1A percentage of that amount.
5
6
No Class 1A contribution shall be payable for any tax year in respect of so much of any F10general earnings as are taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement.
F117
In calculating for the purposes of this section the amount of general earnings received by an earner from an employment, a deduction under any of the excluded provisions is to be disregarded.
This subsection does not apply in relation to a deduction if subsection (7A) applies in relation to it.
7A
Where—
a
a deduction in respect of a matter is allowed under an excluded provision, and
b
the amount deductible is at least equal to the whole of any corresponding amount which would (but for this section) fall by reference to that matter to be included in the general earnings mentioned in subsection (7),
the whole of the corresponding amount shall be treated as not included.
7B
For the purposes of subsections (7) and (7A) “excluded provision” means—
a
any provision of Chapter 2 of Part 5 of ITEPA 2003 (deductions for employee’s expenses), other than section 352 (limited deduction for agency fees paid by entertainers), F16...
F17aa
any of sections 363 to 365 of ITEPA 2003 (certain deductions from benefits code earnings), or
b
any provision of Chapter 5 of Part 5 of ITEPA 2003 (deductions for earnings representing benefits or reimbursed expenses).
8
The Treasury may by regulations—
F12a
modify the effect of subsections (7) and (7A) above by amending subsection (7B) so as to include any enactment contained in the Income Tax Acts within the meaning of “excluded provision”; or
9
The Treasury may by regulations provide—
a
for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons F26, general earnings or termination awards;
b
for reducing Class 1A contributions in prescribed circumstances.
F1510
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1811
The Treasury may by regulations modify the law relating to Class 1A contributions in the case of an employed earner's employment which is treated as existing by virtue of regulations under section 4AA.
F2712
In this section “termination award” means a payment or benefit received by an earner (or an earner's spouse, civil partner, blood relative or dependant) in connection with the termination of the earner's employment.
Pt. 1 modified (2.4.1999) by The New Deal (25 plus) (Miscellaneous Provisions) Order 1999 (S.I. 1999/779), arts. 1(1), 2