The Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1994

Made: 7th March 1994

Coming into operation: 6th April 1994

Now, therefore, the Department of Health and Social Services for Northern Ireland, in exercise of the powers conferred on it by section 129 of the Social Security Administration (Northern Ireland) Act 1992[^f00004] and Article 4(3) of the Social Security (Northern Ireland) Order 1993[^f00005] and of all other powers enabling it in that behalf, and with the consent of the Department of Finance and Personnel in so far as its consent is required, hereby makes the following order:

Citation, commencement and interpretation

1

• (1) This order may be cited as the Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1994 and shall come into operation on 6th April 1994.

• (2) In this order “the Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992[^f00006].

• (3) The Interpretation Act (Northern Ireland) 1954[^f00007] shall apply to this order as it applies to a Measure of the Northern Ireland Assembly.

Weekly earnings and percentage rate figures for secondary earnings brackets

2

In section 9(3) of the Act[^f00008] (secondary earnings brackets and appropriate percentage rates)—

• (a) for the weekly earnings figure £94·99 and the percentage rate figure 4·6, specified in respect of Bracket 1, there shall be substituted respectively, the figures £99·99 and 3·6;

• (b) for the weekly earnings figures £95·00 and £139·99 and the percentage rate figure 6·6, specified in respect of Bracket 2, there shall be substituted respectively the figures £100·00, £144·99 and 5·6;

• (c) for the weekly earnings figures £140·00 and £194·99 and the percentage rate figure 8·6, specified in respect of Bracket 3, there shall be substituted respectively the figures £145·00, £199·99 and 7·6;

• (d) for the weekly earnings figure £195·00 and the percentage rate figure 10·4, specified in respect of Bracket 4, there shall be substituted respectively the figures £200·00 and 10·2.

Rate of, and small earnings exception from, Class 2 contributions

3

In section 11 of the Act[^f00009] (Class 2 contributions)—

• (a) in subsection (1) (weekly rate) for “£5·55” there shall be substituted “£5·65”;

• (b) in subsection (4) (small earnings exception) for “£3,140” there shall be substituted “£3,200”.

Amount of Class 3 contributions

4

In section 13(1) of the Act[^f00010] (amount of Class 3 contributions) for “£5·45” there shall be substituted “£5·55”.

Amount of, and lower and upper limits for, Class 4 contributions

5

In sections 15(3) and 18(1) of the Act[^f00011] (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—

• (a) for “6·3 per cent.” (amount of contribution) there shall be substituted in each of those sections “7·3 per cent.”;

• (b) for “£6,340” (lower limit) wherever it appears there shall be substituted in each of those sections “£6,490”;

• (c) for “£21,840” (upper limit) there shall be substituted in each of those sections “£22,360”.

Prescribed percentage of estimated benefit expenditure

6

Article 4 (3) of the Social Security (Northern Ireland) Order 1993 shall have effect with respect to the tax year 1994-95 and the prescribed percentage of estimated benefit expenditure for the financial year ending in that tax year shall be 16 per cent.

Signed

Sealed with the Official Seal of the Department of Health and Social Services for Northern Ireland on

W. G. Purdy — Assistant Secretary — 7th March 1994.

The Department of Finance and Personnel hereby consents to Article 6 of the foregoing order.

Sealed with the Official Seal of the Department of Finance and Personnel on

R. Miller — Assistant Secretary — 7th March 1994.

Explanatory note

(This note is not part of the Order.)

This order corresponds to an order (S.I. 1994/544) made by the Secretary of State for Social Security under sections 141(4) and (5), 142(2), 143(1), 145(2) and 189(1) and (3) of the Social Security Administration Act 1992 and section 2(2) and (8) of the Social Security Act 1993.

The order increases the amounts of weekly earnings specified in, and reduces the percentage rates appropriate to, the secondary earnings brackets in section 9(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Act”), which determine the amount of secondary Class 1 contributions payable under the Act (Article 2). The amounts of weekly earnings are increased, in respect of Bracket 1 from £94·99 to £99·99, in respect of Bracket 2 from £95·00 and £139·99 to £100·00 and £144·99 respectively, in respect of Bracket 3 from £140·00 and £194·99 to £145·00 and £199·99 respectively and in respect of Bracket 4 from £195·00 to £200·00. The percentage rates are reduced, in respect of Bracket 1 from 4·6 to 3·6 per cent., in respect of Bracket 2 from 6·6 to 5·6 per cent., in respect of Bracket 3 from 8·6 to 7·6 per cent. and in respect of Bracket 4 from 10·4 to 10·2 per cent.

The order increases the rate of Class 2 and amount of Class 3 contributions specified in sections 11(1) and 13(1) of the Act from £5·55 to £5·65 and from £5·45 to £5·55 respectively (Articles 3(a) and 4). It also increases, from £3,140 to £3,200, 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 (Article 3(b)).

The order increases the amount of Class 4 contributions payable by increasing the percentage rate specified in sections 15(3) and 18(1) of the Act at which those contributions are charged from 6·3 to 7·3 per cent. It also increases, from £6,340 to £6,490 and from £21,840 to £22,360 respectively, the lower and upper limits of profits or gains specified in those sections between which Class 4 contributions are payable (Article 5).

The order provides for Article 4(3) of the Social Security (Northern Ireland) Order 1993 to have effect for the tax year 1994-95. It also provides that the amount of appropriated money to be paid into the Northern Ireland National Insurance Fund in that year shall not exceed in aggregate 16 per cent. of the estimated benefit expenditure for the financial year ending in that tax year (Article 6).

Footnotes

[^f00001]: S.I. 1994/544

[^f00002]: 1992 c. 5

[^f00003]: 1993 c. 3

[^f00004]: 1992 c. 8

[^f00005]: S.I. 1993/592 (N.I. 2)

[^f00006]: 1992 c. 7; relevant amending provision is S.R. 1993 No. 60

[^f00007]: 1954 c. 33 (N.I.)

[^f00008]: Section 9(3) was amended by Article 2 of S.R. 1993 No. 60

[^f00009]: Section 11(1) and (4) was amended by Article 3 of S.R. 1993 No. 60

[^f00010]: Section 13(1) was amended by Article 4 of S.R. 1993 No. 60

[^f00011]: Sections 15(3) and 18(1) were amended by Article 5 of S.R. 1993 No. 60