1 Citation, commencement and interpretation

(1)    This Order may be cited as the Social Security (Contributions) (Re-rating) Order 2009 and shall come into force on 6th April 2009.

(2)    In this Order—

“the Act” means the Social Security Contributions and Benefits Act 1992; and

“the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2009: see para (1) above.

2 Rate of and small earnings exception from Class 2 contributions

2Rate of and small earnings exception from Class 2 contributions

In both section 11 of the Act and section 11 of the Northern Ireland Act (Class 2 contributions)—

(a)    in subsection (1) for “£2.30” substitute “£2.40”; and

(b)    in subsection (4) (small earnings exception) for “£4,825” substitute “£5,075”.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2009: see art 1(1).

3 Amount of Class 3 contributions

3Amount of Class 3 contributions

In both section 13(1) of the Act and section 13(1) of the Northern Ireland Act (amount of Class 3 contributions) for “£8.10” substitute “£12.05”.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2009: see art 1(1).

4 Lower and upper limits for Class 4 contributions

4Lower and upper limits for Class 4 contributions

In each of sections 15(3), 18(1) and 18(1A) of the Act and sections 15(3), 18(1) and 18(1A) of the Northern Ireland Act (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—

(a)    for “£5,435” (lower limit) in each place where it appears, substitute “£5,715”; and

(b)    for “£40,040” (upper limit) in each place where it appears, substitute “£43,875”.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2009: see art 1(1).

Signature

Frank Roy

Tony Cunningham

Two of the Lords Commissioners of Her Majesty's Treasury

10th March 2009

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Order)

This Order increases the rates of Class 2 and Class 3 contributions specified in sections 11(1) and 13(1) of the Social Security Contributions and Benefits Act 1992 ( “the Act”) from £2.30 to £2.40 and from £8.10 to £12.05. It also increases the amount of earnings specified in section 11(4) of the Act, below which an earner may be excepted from liability for Class 2 contributions from £4,825 to £5,075 (Articles 2 and 3).

The Order also increases, from £5,435 to £5,715 and from £40,040 to £43,875 respectively, the lower and upper limits of profits specified in sections 15 and 18, between which Class 4 contributions are payable at the main Class 4 percentage rate (Article 4).

Articles 2 to 4 of the Order also make provision for Northern Ireland corresponding to that in the preceding two paragraphs (the section numbers of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 are the same as those in the Act).

In accordance with sections 142(1) of the Social Security Administration Act 1992, a copy of the report by the Government Actuary (Cm. 7537), giving his opinion on the likely effect on the National Insurance Fund of the making of the Order, insofar as it amends sections 11(1), 11(4), 13(1), 15(3), 18(1) and 18(1A) of the Act, was laid before Parliament with the draft of this Order.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

Welfare, Housing & Social Security Law94 Class 2 Contributions: Self-employed Earners99 Employment & Labour Law99 Employment Taxes99 Contributions94 Class 3 Contributions: Voluntary99 Class 4 Contributions: on Profits of a Trade99 Tax Law99 National Insurance Contributions99