The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2015
Citation and commencement
1.
These regulations may be cited as the Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2015 and come into force on 6th April 2015.
Amendments to the Social Security (Contributions) Regulations 2001
2.
3.
In Regulation 10 (earnings limits and thresholds)—
(a)
for “section 5(1)” substitute “sections 5(1) and 9A”;
(b)
for “2014” substitute “2015”;
(c)
in paragraph (a) (lower earnings limit: primary Class 1 contributions) for “£111” substitute “£112”;
(d)
in paragraph (b) (upper earnings limit: primary Class 1 contributions) for “£805” substitute “£815”;
(e)
in paragraph (c) (primary threshold: primary Class 1 contributions) for “£153” substitute “£155”;
(f)
after paragraph (c) omit “and”;
(g)
in paragraph (d) (secondary threshold: secondary Class 1 contributions) for “£153” substitute “£156”; and
(h)
“; and
(e)
the upper secondary threshold for secondary Class 1 contributions in relation to the Under 21 group (for the upper limit of the age-related secondary percentage) shall be £815”.
4.
In Regulation 11 (prescribed equivalents)—
(a)
in paragraph (2A)—
(i)
in sub-paragraph (a) for “£3,489” substitute “£3,532”; and
(ii)
in sub-paragraph (b) for “£41,865” substitute “£42,385”;
(b)
in paragraph (3)—
(i)
in sub-paragraph (a) for “£663” substitute “£672”; and
(ii)
in sub-paragraph (b) for “£7,956” substitute “£8,060”;
(c)
in paragraph (3A)—
(i)
in sub-paragraph (a) for “£663” substitute “£676”; and
(ii)
in sub-paragraph (b) for “£7,956” substitute “£8,112”;
(d)
“(3B)
Subject to paragraphs (4) and (5), the prescribed equivalents of the upper secondary threshold for secondary Class 1 contributions in relation to the Under 21 age group shall be—
(a)
where the earnings period is a month, £3,532;
(b)
where the earnings period is a year, £42,385;
(c)
where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple;
(d)
where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple;
(e)
in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned.”;
(e)
in paragraph (4) for “and paragraph (3A)(c) and (d)” substitute “, paragraph (3A)(c) and (d) and paragraph (3B)(c) and (d)”; and
(f)
in paragraph (5) for “and paragraph (3A)(e)” substitute “, paragraph (3A)(e) and paragraph (3B)(e)”.
These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“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 2015. It also introduces an upper secondary threshold for the age-related secondary percentage for secondary Class 1 contributions which applies in relation to primary contributors who are under the age of 21.
Regulation 4 amends Regulation 11 of the principal Regulations so as to provide for equivalents of the upper earnings limit, primary threshold and secondary threshold where the earnings period is a month or a year. It also provides monthly, annual or irregular period equivalents for the upper secondary threshold.
A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it relates to routine changes to rates, limits and thresholds to a predetermined indexation formula.