SCHEDULES

I1SCHEDULE 6 Transitional Provisions and Savings

Annotations:
Commencement Information
I1

Sch. 6 in force at 7.2.1994 by S.I. 1994/86, art. 2

Part II Specific Provisions

Contributions equivalent premiums: earnings before 1987-88

14

1

Where an earner’s earnings paid in any period before the tax year 1987-88—

a

exceeded the lower earnings limit; but

b

were not such that primary Class 1 contributions within Bracket 3 fell to be paid in respect of them,

it shall be assumed for the purposes of sections 58(4) and 61(2) that his earnings paid in that period were such that, taking the rate specified in Bracket 3 as the appropriate rate, the same amount of primary Class 1 contributions fell to be paid in respect of them as in fact fell to be paid in respect of them; and in this paragraph “Bracket 3” has the meaning given in section 9(3) of the M1Social Security Contributions and Benefits Act 1992.

2

Section 63(3) applies for the purposes of sub-paragraph (1), in so far as it applies as respects section 58(4), as if the reference in paragraph (b) of section 63(3) to earnings included a reference to earnings relevant for any purpose of that sub-paragraph.

3

Where the F1Inland Revenue have acted in pursuance of section 63(3) as applied by sub-paragraph (2) and F2they subsequently ascertain the amount of those earnings—

a

if it appears to F3them that the amount of the contributions equivalent premium would have been less if F3they had not made the calculation on the basis described in sub-paragraph (1), F3they shall refund the difference to the prescribed person, and

b

if it appears to the F4Inland Revenue that that premium would have been greater if F4they had not done so, the prescribed person shall pay the difference to F4them.