Legalize / United Kingdom / Public General Act

Social Security Contributions and Benefits (Northern Ireland) Act 1992

Type Public General Act

Publication 1992-02-13

Last updated 2026-03-15

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(a) to exclude, limit or otherwise modify any provision of this Part of this Act, or

(b) to require an employee to contribute (whether directly or indirectly) towards any costs incurred by his employer under this Part of this Act.

(3) For the avoidance of doubt, any agreement between an employer and an employee authorising any deductions from statutory sick pay which the employer is liable to pay to the employee in respect of any period shall not be void by virtue of subsection (2)(a) above if the employer—

(a) is authorised by that or another agreement to make the same deductions from any contractual remuneration which he is liable to pay in respect of the same period, or

(b) would be so authorised if he were liable to pay contractual remuneration in respect of that period.

(4) For the purposes of this Part of this Act a day of incapacity for work in relation to a contract of service means a day on which the employee concerned is, or is deemed in accordance with regulations to be, incapable by reason of some specific disease or bodily or mental disablement of doing work which he can reasonably be expected to do under that contract.

(4A) Regulations under subsection (4) may make provision about whether an employee is deemed to be incapable (as referred to in that subsection) in relation to severe acute respiratory syndrome coronavirus 2 by reference to guidance or any other document published by the Regional Agency for Public Health and Social Well-being, Public Health England, NHS National Services Scotland, the Public Health Wales National Health Service Trust or any other person specified in the regulations as that guidance or other document is amended from time to time.

(5) In any case where an employee has more than one contract of service with the same employer the provisions of this Part of this Act shall, except in such cases as may be prescribed and subject to the following provisions of this Part of this Act, have effect as if the employer were a different employer in relation to each contract of service.

(6) Circumstances may be prescribed in which, notwithstanding the provisions of subsections (1) to (5) above, the liability to make payments of statutory sick pay is to be a liability of the Commissioners of Inland Revenue.

(7) Regulations under subsection (6) above must be made with the concurrence of the Commissioners of Inland Revenue

The qualifying conditions

Period of incapacity for work

148

(1) The first condition is that the day in question forms part of a period of incapacity for work.

(2) In this Part of this Act “period of incapacity for work” means any period of four or more consecutive days, each of which is a day of incapacity for work in relation to the contract of service in question.

(3) Any two periods of incapacity for work which are separated by a period of not more than 8 weeks shall be treated as a single period of incapacity for work.

(4) The Department may by regulations direct that a larger number of weeks specified in the regulations shall be substituted for the number of weeks for the time being specified in subsection (3) above.

(5) No day of the week shall be disregarded in calculating any period of consecutive days for the purposes of this section.

(6) A day may be a day of incapacity for work in relation to a contract of service, and so form part of a period of incapacity for work, notwithstanding that—

(a) it falls before the making of the contract or after the contract expires or is brought to an end; or

(b) it is not a day on which the employee concerned would be required by that contract to be available for work.

Period of entitlement

149

(1) The second condition is that the day in question falls within a period which is, as between the employee and his employer, a period of entitlement.

(2) For the purposes of this Part of this Act a period of entitlement, as between an employee and his employer, is a period beginning with the commencement of a period of incapacity for work and ending with whichever of the following first occurs—

(a) the termination of that period of incapacity for work;

(b) the day on which the employee reaches, as against the employer concerned, his maximum entitlement to statutory sick pay (determined in accordance with section 151 below);

(d) in the case of an employee who is, or has been, pregnant, the day immediately preceding the beginning of the disqualifying period.

(3) Schedule 11 to this Act has effect for the purpose of specifying circumstances in which a period of entitlement does not arise in relation to a particular period of incapacity for work.

(4) A period of entitlement as between an employee and an employer of his may also be, or form part of, a period of entitlement as between him and another employer of his.

(5) The Department may by regulations—

(a) specify circumstances in which, for the purpose of determining whether an employee’s maximum entitlement to statutory sick pay has been reached in a period of entitlement as between him and an employer of his, days falling within a previous period of entitlement as between the employee and any person who is or has in the past been an employer of his are to be counted; and

(b) direct that in prescribed circumstances an employer shall provide a person who is about to leave his employment, or who has been employed by him in the past, with a statement in the prescribed form containing such information as may be prescribed in relation to any entitlement of the employee to statutory sick pay.

(6) Regulations may provide, in relation to prescribed cases, for a period of entitlement to end otherwise than in accordance with subsection (2) above.

(7) In a case where the employee’s contract of service first takes effect on a day which falls within a period of incapacity for work, the period of entitlement begins with that day.

(8) In a case where the employee’s contract of service first takes effect between two periods of incapacity for work which by virtue of section 148(3) above are treated as one, the period of entitlement begins with the first day of the second of those periods.

(9) In any case where, otherwise than by virtue of section 6(1)(b) above, an employee’s earnings under a contract of service in respect of the day on which the contract takes effect do not attract a liability to pay secondary Class 1 contributions, subsections (7) and (8) above shall have effect as if for any reference to the contract first taking effect there were substituted a reference to the first day in respect of which the employee’s earnings attract such a liability.

(10) Regulations shall make provision as to an employer’s liability under this Part of this Act to pay statutory sick pay to an employee in any case where the employer’s contract of service with that employee has been brought to an end by the employer solely, or mainly, for the purpose of avoiding liability for statutory sick pay.

(11) Subsection (2)(d) above does not apply in relation to an employee who has been pregnant if her pregnancy terminated, before the beginning of the disqualifying period, otherwise than by confinement.

(12) In this section—

“confinement” is to be construed in accordance with section 167(1) below;

“disqualifying period” means—in relation to a woman entitled to statutory maternity pay, the maternity pay period; andin relation to a woman entitled to maternity allowance, the maternity allowance period;

“maternity allowance period” has the meaning assigned to it by section 35(2) above, and

“maternity pay period” has the meaning assigned to it by section 161(1) below.

Qualifying days

150

(1) The third condition is that the day in question is a qualifying day.

(2) The days which are for the purposes of this Part of this Act to be qualifying days as between an employee and an employer of his (that is to say, those days of the week on which he is required by his contract of service with that employer to be available for work or which are chosen to reflect the terms of that contract) shall be such day or days as may, subject to regulations, be agreed between the employee and his employer or, failing such agreement, determined in accordance with regulations.

(3) In any case where qualifying days are determined by agreement between an employee and his employer there shall, in each week (beginning with Sunday), be at least one qualifying day.

(4) A day which is a qualifying day as between an employee and an employer of his may also be a qualifying day as between him and another employer of his.

Limitations on entitlement, etc.

Limitations on entitlement

151

(1) Statutory sick pay shall not be payable for the first three qualifying days in any period of entitlement.

(2) An employee shall not be entitled, as against any one employer, to an aggregate amount of statutory sick pay in respect of any one period of entitlement which exceeds his maximum entitlement.

(3) The maximum entitlement as against any one employer is reached on the day on which the amount to which the employee has become entitled by way of statutory sick pay during the period of entitlement in question first reaches or passes the entitlement limit.

(4) The entitlement limit is an amount equal to 28 times the weekly rate applicable in accordance with section 153 below.

(5) Regulations may make provision for calculating the entitlement limit in any case where an employee’s entitlement to statutory sick pay is calculated by reference to different weekly rates in the same period of entitlement.

Notification of incapacity for work

152

(1) Regulations shall prescribe the manner in which, and the time within which, notice of any day of incapacity for work is to be given by or on behalf of an employee to his employer.

(2) An employer who would, apart from this section, be liable to pay an amount of statutory sick pay to an employee in respect of a qualifying day (the “day in question”) shall be entitled to withhold payment of that amount if—

(a) the day in question is one in respect of which he has not been duly notified in accordance with regulations under subsection (1) above; or

(b) he has not been so notified in respect of any of the first three qualifying days in a period of entitlement (a “waiting day”) and the day in question is the first qualifying day in that period of entitlement in respect of which the employer is not entitled to withhold payment—

(i) by virtue of paragraph (a) above; or

(ii) in respect of an earlier waiting day by virtue of this paragraph.

(3) Where an employer withholds any amount of statutory sick pay under this section—

(a) the period of entitlement in question shall not be affected; and

(b) for the purposes of calculating his maximum entitlement in accordance with section 151 above the employee shall not be taken to have become entitled to the amount so withheld.

Rate of payment, etc.

Rate of payment

153

(1) Statutory sick pay shall be payable by an employer at the weekly rate of £118.75.

(2) The Department may by order—

(a) amend subsection (1) above so as to substitute different provision as to the weekly rate or rates of statutory sick pay; and

(b) make such consequential amendments as appear to the Department to be required of any provision contained in this Part of this Act.

(3) The amount of statutory sick pay payable by any one employer in respect of any day shall be the weekly rate applicable on that day divided by the number of days which are, in the week (beginning with Sunday) in which that day falls, qualifying days as between that employer and the employee concerned.

Recovery by employers of amounts paid by way of statutory sick pay

154

Power to substitute provisions for s. 154(2)

155

Miscellaneous

Relationship with benefits and other payments, etc

156

Schedule 12 to this Act has effect with respect to the relationship between statutory sick pay and certain benefits and payments.

Crown employment - Part XI

157

(1) Subject to subsection (2) below, the provisions of this Part of this Act apply in relation to persons employed by or under the Crown as they apply in relation to persons employed otherwise than by or under the Crown.

(2) The provisions of this Part of this Act do not apply in relation to persons serving as members of Her Majesty’s forces, in their capacity as such.

(3) For the purposes of this section Her Majesty’s forces shall be taken to consist of such establishments and organisations as may be prescribed by regulations made by the Secretary of State with the concurrence of the Treasury, being establishments and organisations in which persons serve under the control of the Defence Council.

Special classes of persons

158

(1) The Department may with the concurrence of the Treasury make regulations modifying this Part of this Act in such manner as the Department thinks proper in their application to any person who is, has been or is to be—

(a) employed on board any ship, vessel, hovercraft or aircraft; or

(b) outside Northern Ireland at any prescribed time or in any prescribed circumstances.

(2) Regulations under subsection (1) above may in particular provide—

(a) for any provision of this Part to apply to any such person, notwithstanding that it would not otherwise apply;

(b) for any such provision not to apply to any such person, notwithstanding that it would otherwise apply;

(c) for excepting any such person from the application of any such provision where he neither is domiciled nor has a place of residence in Northern Ireland;

(d) for the taking of evidence, for the purposes of the determination of any question arising under any such provision, in a country or territory other than Northern Ireland, by a British consular official or such other person as may be determined in accordance with the regulations.

Interpretation of Part XI and supplementary provisions

159

(1) In this Part of this Act—

“contract of service” (except in paragraph (a) of the definition below of “employee”) includes any arrangement providing for the terms of appointment of an employee;

“employee” means a person who is—gainfully employed in Northern Ireland either under a contract of service or in an office (including elective office) with earnings (within the meaning of Parts 1 to 5 above); .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .but subject to regulations, which may provide for cases where any such person is not to be treated as an employee for the purposes of this Part of this Act and for cases where any person who would not otherwise be an employee for those purposes is to be treated as an employee for those purposes;

“employer”, in relation to an employee and a contract of service of his, means a person who—under section 6 above is liable to pay secondary Class 1 contributions in relation to any earnings of the employee under the contract; orwould be liable to pay such contributions but for—the condition in section 6(1)(b); orthe employee being under the age of 16;

“period of entitlement” has the meaning given by section 149 above;

“period of incapacity for work” has the meaning given by section 148 above;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“prescribed” means prescribed by regulations;

“qualifying day” has the meaning given by section 150 above;

“week” means any period of 7 days.

(2) For the purposes of this Part of this Act an employee’s normal weekly earnings shall, subject to subsection (4) below, be taken to be the average weekly earnings which in the relevant period have been paid to him or paid for his benefit under his contract of service with the employer in question.

(3) For the purposes of subsection (2) above, the expressions “earnings” and “relevant period” shall have the meaning given to them by regulations.

(4) In such cases as may be prescribed an employee’s normal weekly earnings shall be calculated in accordance with regulations.

(5) Without prejudice to any other power to make regulations under this Part of this Act, regulations may specify cases in which, for the purposes of this Part of this Act or such of its provisions as may be prescribed—

(a) two or more employers are to be treated as one;

(b) two or more contracts of service in respect of which the same person is an employee are to be treated as one.

(6) Where, in consequence of the establishment of one or more Health and Social Services trusts under the Health and Personal Social Services (Northern Ireland) Order 1991, a person’s contract of employment is treated by a scheme under that Order as divided so as to constitute two or more contracts, regulations may make provision enabling him to elect for all of those contracts to be treated as one contract for the purposes of this Part of this Act or of such provisions of this Part of this Act as may be prescribed; and any such regulations may prescribe—

(a) the conditions that must be satisfied if a person is to be entitled to make such an election;

(b) the manner in which, and the time within which, such an election is to be made;

(d) the information which a person who makes such an election is to provide, and the persons to whom, and the time within which, he is to provide it;

(e) the time for which such an election is to have effect;

(f) which one of the person’s employers under the two or more contracts is to be regarded for the purposes of statutory sick pay as his employer under the one contract;

and the powers conferred by this subsection are without prejudice to any other power to make regulations under this Part of this Act.

(7) Regulations may provide for periods of work which begin on one day and finish on the following day to be treated, for the purposes of this Part of this Act, as falling solely within one or other of those days.

Part XII — Statutory Maternity Pay

Statutory maternity pay - entitlement and liability to pay

160

(1) Where a woman who is or has been an employee satisfies the conditions set out in this section, she shall be entitled, in accordance with the following provisions of this Part of this Act, to payments to be known as “statutory maternity pay”.

(2) The conditions mentioned in subsection (1) above are—

(a) that she has been in employed earner’s employment with an employer for a continuous period of at least 26 weeks ending with the week immediately preceding the 14th week before the expected week of confinement but has ceased to work for him . . . ;

(b) that her normal weekly earnings for the period of 8 weeks ending with the week immediately preceding the 14th week before the expected week of confinement are not less than the lower earnings limit in force under section 5(1)(a) above immediately before the commencement of the 14th week before the expected week of confinement; and

(c) that she has become pregnant and has reached, or been confined before reaching, the commencement of the 11th week before the expected week of confinement.

(3) The liability to make payments of statutory maternity pay to a woman is a liability of any person of whom she has been an employee as mentioned in subsection (2)(a) above.

(4) A woman shall be entitled to payments of statutory maternity pay only if—

(a) she gives the person who will be liable to pay it notice of the date from which she expects his liability to pay her statutory maternity pay to begin; and

(b) the notice is given at least 28 days before that date or, if that is not reasonably practicable, as soon as is reasonably practicable.

(5) The notice shall be in writing if the person who is liable to pay the woman statutory maternity pay so requests.

(6) Any agreement shall be void to the extent that it purports—

(a) to exclude, limit or otherwise modify any provision of this Part of this Act; or

(b) to require an employee or former employee to contribute (whether directly or indirectly) towards any costs incurred by her employer or former employer under this Part of this Act.

(7) For the avoidance of doubt, any agreement between an employer and an employee authorising any deductions from statutory maternity pay which the employer is liable to pay to the employee in respect of any period shall not be void by virtue of subsection (6)(a) above if the employer—

(a) is authorised by that or another agreement to make the same deductions from any contractual remuneration which he is liable to pay in respect of the same period, or

(b) would be so authorised if he were liable to pay contractual remuneration in respect of that period.

(8) Regulations shall make provision as to a former employer’s liability to pay statutory maternity pay to a woman in any case where the former employer’s contract of service with her has been brought to an end by the former employer solely, or mainly, for the purpose of avoiding liability for statutory maternity pay.

(9) The Department may by regulations—

(a) specify circumstances in which, notwithstanding subsections (1) to (8) above, there is to be no liability to pay statutory maternity pay in respect of a week;

(b) specify circumstances in which, notwithstanding subsections (1) to (8) above, the liability to make payments of statutory maternity pay is to be a liability of the Commissioners of Inland Revenue;

(d) provide that a woman is to be treated as being employed for a continuous period of at least 26 weeks where—

(i) she has been employed by the same employer for at least 26 weeks under two or more separate contracts of service; and

(ii) those contracts were not continuous;

(e) provide that any of the provisions specified in subsection (10) below shall have effect subject to prescribed modificationsin such cases as may be prescribed

(ea) provide that subsection (4) above shall not have effect, or shall have effect subject to prescribed modifications, in such cases as may be prescribed;

(f) provide for amounts earned by a woman under separate contracts of service with the same employer to be aggregated for the purposes of this Part of this Act; and

(g) provide that—

(i) the amount of a woman’s earnings for any period, or

(ii) the amount of her earnings to be treated as comprised in any payment made to her or for her benefit,

shall be calculated or estimated in such manner and on such basis as may be prescribed and that for that purpose payments of a particular class or description made or falling to be made to or by a woman shall, to such extent as may be prescribed, be disregarded or, as the case may be, be deducted from the amount of her earnings.

(10) The provisions mentioned in subsection (9)(e) above are—

(a) subsection (2)(a) and (b) above; and

(b) section 162(1) and (2) . . . below.

(11) Any regulations under subsection (9) above which are made by virtue of paragraph (b) of that subsection must be made with the concurrence of the Commissioners of Inland Revenue.

The maternity pay period

161

(1) Statutory maternity pay shall be payable, subject to the provisions of this Part of this Act, in respect of each week during a prescribed period (“the maternity pay period”) of a duration not exceeding 52 weeks.

(2) Subject to subsections (3) and (7), the maternity pay period shall begin with the 11th week before the expected week of confinement.

(3) Cases may be prescribed in which the first day of the period is to be a prescribed day after the beginning of the 11th week before the expected week of confinement, but not later than the day immediately following the day on which she is confined.

(3A) Regulations may provide for the duration of the maternity pay period as it applies to a woman to be reduced, subject to prescribed restrictions and conditions.

(3B) Regulations under subsection (3A) are to secure that the reduced period ends at a time—

(a) after a prescribed period beginning with the day on which the woman is confined; and

(b) when at least a prescribed part of the maternity pay period remains unexpired.

(3C) Regulations under subsection (3A) may, in particular, prescribe restrictions and conditions relating to—

(a) the end of the woman's entitlement to maternity leave;

(b) the doing of work by the woman;

(c) the taking of prescribed steps by the woman or another person as regards leave under Article 107E of the Employment Rights Order in respect of the child;

(d) the taking of prescribed steps by the woman or another person as regards statutory shared parental pay in respect of the child.

(3D) Regulations may provide for a reduction in the duration of the maternity pay period as it applies to a woman to be revoked, or to be treated as revoked, subject to prescribed restrictions and conditions.

(4) Except in such cases as may be prescribed, statutory maternity pay shall not be payable to a woman by a person in respect of any week during any part of which she works under a contract of service with him.

(5) It is immaterial for the purposes of subsection (4) above whether the work referred to in that subsection is work under a contract of service which existed immediately before the maternity pay period or a contract of service which did not so exist.

(6) Except in such cases as may be prescribed, statutory maternity pay shall not be payable to a woman in respect of any week after she has been confined and during any part of which she works for any employer who is not liable to pay her statutory maternity pay.

(7) Regulations may provide that this section shall have effect subject to prescribed modifications in relation—

(a) to cases in which a woman has been confined before the 11th week before the expected week of confinement; and

(b) to cases in which—

(i) a woman is confined at any after the end of the week immediately preceding the 11th week, before the expected week of confinement; and

(ii) the maternity pay period has not then commenced for her.

(8) In subsections (1), (4) and (6) “week” means a period of 7 days beginning with the day of the week on which the maternity pay period begins.

Rates of payment

162

(1) Statutory maternity pay shall be payable to a woman—

(a) at the earnings-related rate, in respect of the first 6 weeks in respect of which it is payable; and

(b) at whichever is the lower of the earnings-related rate and such weekly rate as may be prescribed, in respect of the remaining portion of the maternity pay period.

(1A) In subsection (1) “week” means any period of 7 days.

(2) The earnings-related rate is a weekly rate equivalent to 90 per cent. of a woman’s normal weekly earnings for the period of 8 weeks immediately preceding the 14th week before the expected week of confinement.

(3) The weekly rate prescribed under subsection (1)(b) above must not be less than the weekly rate of statutory sick pay for the time being specified in section 153(1) above or, if two or more such rates are for the time being so specified, the higher or highest of those rates.

(4) Where for any purpose of this Part of this Act or of regulations it is necessary to calculate the daily rate of statutory maternity pay, the amount payable by way of statutory maternity pay for any day shall be taken as one seventh of the weekly rate.

Recovery of amounts paid by way of statutory maternity pay

163

(1) Regulations shall make provision for the payment by employers of statutory maternity pay to be funded by the Commissioners of Inland Revenue to such extent as may be prescribed.

(2) Regulations under subsection (1) shall—

(a) make provision for a person who has made a payment of statutory maternity pay to be entitled, except in prescribed circumstances, to recover an amount equal to the sum of—

(i) the aggregate of such of those payments as qualify for small employers’ relief; and

(ii) an amount equal to 92 per cent of the aggregate of such of those payments as do not so qualify; and

(b) include provision for a person who has made a payment of statutory maternity pay qualifying for small employers’ relief to be entitled, except in prescribed circumstances, to recover an additional amount, determined in such manner as may be prescribed—

(i) by reference to secondary Class 1 contributions paid in respect of statutory maternity pay;

(ii) by reference to secondary Class 1 contributions paid in respect of statutory sick pay; or

(iii) by reference to the aggregate of secondary Class 1 contributions paid in respect of statutory maternity pay and secondary Class 1 contributions paid in respect of statutory sick pay.

(3) For the purposes of this section a payment of statutory maternity pay which a person is liable to make to a woman qualifies for small employers’ relief if, in relation to that woman’s maternity pay period, the person liable to make the payment is a small employer.

(4) For the purposes of this section “small employer”, in relation to a woman’s maternity pay period, shall have the meaning assigned to it by regulations, and, without prejudice to the generality of the foregoing, any such regulations—

(a) may define that expression by reference to the amount of a person’s contributions payments for any prescribed period; and

(b) if they do so, may in that connection make provision for the amount of those payments for that prescribed period—

(i) to be determined without regard to any deductions that may be made from them under this section or under any other enactment or instrument; and

(ii) in prescribed circumstances, to be adjusted, estimated or otherwise attributed to him by reference to their amount in any other prescribed period.

(5) Regulations under subsection (1) may, in particular, make provision—

(a) for funding in advance as well as in arrear;

(b) for funding, or the recovery of amounts due under provision made by virtue of subsection (2)(b), by means of deductions from such amounts for which employers are accountable to the Commissioners of Inland Revenue as may be prescribed, or otherwise;

(6) Where in accordance with any provision of regulations under subsection (1) an amount has been deducted from an employer’s contributions payments, the amount so deducted shall (except in such cases as may be prescribed) be treated for the purposes of any provision made by or under any enactment in relation to primary or secondary Class 1 contributions—

(a) as having been paid (on such date as may be determined in accordance with the regulations), and

(b) as having been received by the Commissioners of Inland Revenue,

towards discharging the employer’s liability in respect of such contributions.

(7) Regulations under any provision of this section shall be made by the Secretary of State.

(8) Regulations under this section must be made with the concurrence of the Commissioners of Inland Revenue.

(9) In this section “contributions payments”, in relation to an employer, means any payments which the employer is required, by or under any enactment, to make in discharge of any liability in respect of primary or secondary Class 1 contributions.

Relationship with benefits and other payments, etc

164

Schedule 13 to this Act has effect with respect to the relationship between statutory maternity pay and certain benefits and payments.

Crown employment - Part XII

165

The provisions of this Part of this Act apply in relation to women employed by or under the Crown as they apply in relation to women employed otherwise than by or under the Crown.

Special classes of persons

166

(1) The Department may with the concurrence of the Treasury make regulations modifying this Part of this Act in such manner as the Department thinks proper in their application to any person who is, has been or is to be—

(a) employed on board any ship, vessel, hovercraft or aircraft;

(b) outside Northern Ireland at any prescribed time or in any prescribed circumstances; or

(2) Regulations under subsection (1) above may in particular provide—

(a) for any provision of this Part to apply to any such person, notwithstanding that it would not otherwise apply;

(b) for any such provision not to apply to any such person, notwithstanding that it would otherwise apply;

(c) for excepting any such person from the application of any such provision where he neither is domiciled nor has a place of residence in any part of Northern Ireland;

(d) for the taking of evidence, for the purposes of the determination of any question arising under any such provision, in a country or territory other than Northern Ireland, by a British consular official or such other person as may be determined in accordance with the regulations.

(3) In this section “continental shelf operations” means any activities which, if paragraphs (a) and (d) of subsection (8) of section 11 of the Petroleum Act 1998 (application of civil law to certain off-shore activities) were omitted, would nevertheless fall within subsection (2) of that section.

Interpretation of Part XII, etc

167

(1) In this Part of this Act—

“confinement” means—labour resulting in the issue of a living child, orlabour after 24 weeks of pregnancy resulting in the issue of a child whether alive or dead,and “confined” shall be construed accordingly; and where a woman’s labour begun on one day results in the issue of a child on another day she shall be taken to be confined on the day of the issue of the child or, if labour results in the issue of twins or a greater number of children, she shall be taken to be confined on the day of the issue of the last of them;

“dismissed” is to be construed in accordance with Part XI of the Employment Rights (Northern Ireland) Order 1996;

“employee”means a woman who is—gainfully employed in Northern Ireland either under a contract of service or in an office (including elective office) with earnings (within the meaning of Parts 1 to 5 above); ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . but subject to regulations made with the concurrence of the Commissioners of Her Majesty’s Revenue and Customs which may provide for cases where any such woman is not to be treated as an employee for the purposes of this Part of this Act and for cases where a woman who would not otherwise be an employee for those purposes is to be treated as an employee for those purposes;

“employer”, in relation to a woman who is an employee, means a person who—under section 6 above is liable to pay secondary Class 1 contributions in relation to any of her earnings; orwould be liable to pay such contributions but for—the condition in section 6(1)(b); orthe employee being under the age of 16;

“maternity pay period” has the meaning assigned to it by section 161(1) above;

“modifications” includes additions, omissions and amendments, and related expressions shall be construed accordingly;

“prescribed” means specified in or determined in accordance with regulations;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1A) In this Part, except section 161(1), (4) and (6), section 162(1) and paragraph 3(2) of Schedule 13, “week” means a period of 7 days beginning with Sunday or such other period as may be prescribed in relation to any particular case or class of case.

(2) Without prejudice to any other power to make regulations under this Part of this Act, regulations may specify cases in which, for the purposes of this Part of this Act or of such provisions of this Part of this Act as may be prescribed—

(a) two or more employers are to be treated as one;

(b) two or more contracts of service in respect of which the same woman is an employee are to be treated as one.

(3) Where, in consequence of the establishment of one or more Health and Social Services trusts under the Health and Personal Social Services (Northern Ireland) Order 1991, a woman’s contract of employment is treated by a scheme under that Order as divided so as to constitute two or more contracts, regulations may make provision enabling her to elect for all of those contracts to be treated as one contract for the purposes of this Part of this Act or of such provisions of this Part of this Act as may be prescribed; and any such regulations may prescribe—

(a) the conditions that must be satisfied if a woman is to be entitled to make such an election;

(b) the manner in which, and the time within which, such an election is to be made;

(d) the information which a woman who makes such an election is to provide, and the persons to whom, and the time within which, she is to provide it;

(e) the time for which such an election is to have effect;

(f) which one of the woman’s employers under the two or more contracts is to be regarded for the purposes of statutory maternity pay as her employer under the one contract;

and the powers conferred by this subsection are without prejudice to any other power to make regulations under this Part of this Act.

(4) For the purposes of this Part of this Act a woman’s normal weekly earnings shall, subject to subsection (6) below, be taken to be the average weekly earnings which in the relevant period have been paid to her or paid for her benefit under the contract of service with the employer in question.

(5) For the purposes of subsection (4) above “earnings” and “relevant period” shall have the meanings given to them by regulations.

(6) In such cases as may be prescribed a woman’s normal weekly earnings shall be calculated in accordance with regulations.

(7) Regulations under any of subsections (2) to (6) above must be made with the concurrence of the Commissioners of Inland Revenue.

Part XIII — General

Interpretation

Application of Act in relation to territorial waters

168

In this Act—

(a) any reference to Northern Ireland includes a reference to the territorial waters of the United Kingdom adjacent to Northern Ireland;

(b) any reference to the United Kingdom includes a reference to the territorial waters of the United Kingdom.

Age

169

For the purposes of this Act a person—

(a) is over or under a particular age if he has or, as the case may be, has not attained that age; and

(b) is between two particular ages if he has attained the first but not the second.

Interpretation

170

In this Act—

“the 1975 Act” means the Social Security (Northern Ireland) Act 1975;

“the 1986 Order” means the Social Security (Northern Ireland) Order 1986;

“the Administration Act” means the Social Security Administration (Northern Ireland) Act 1992;

“the Consequential Provisions Act” means the Social Security (Consequential Provisions) (Northern Ireland) Act 1992;

“the Department” means (except in Parts XIIZA , 12ZB , 12ZC and 12ZD above) the Department of Health and Social Services for Northern Ireland;

“the Department of Economic Development” means the Department of Economic Development in Northern Ireland;

“the Department of the Environment” means the Department of the Environment for Northern Ireland;

“the Department of Finance and Personnel” means the Department of Finance and Personnel in Northern Ireland;

the Employment Rights Order” means the Employment Rights (Northern Ireland) Order 1996;

“the Great Britain Administration Act” means the Social Security Administration Act 1992;

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

“the National Insurance Fund” means the Northern Ireland National Insurance Fund;

“the Old Cases Act” means the Industrial Injuries and Diseases (Northern Ireland Old Cases) Act 1975;

“the Pensions Act” means the Pension Schemes (Northern Ireland) Act 1993;

“the Pensions Order” means the Social Security Pensions (Northern Ireland) Order 1975;

“statutory provision” has the meaning assigned by section 1(f) of the Interpretation Act (Northern Ireland) 1954.

Subordinate legislation

Regulations and orders - general

171

(1) Subject to any provision providing for regulations or orders to be made by the Treasury or the Commissioners of Inland Revenue and to any specific provision of this Act, regulations and orders under this Act shall be made by the Department.

(2) Any power conferred by this Act on the Department to make regulations or orders is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979.

(3) Except in the case of an order under section 141(3) above and in so far as this Act otherwise provides, any power conferred by this Act to make regulations or an order may be exercised—

(a) either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;

(b) so as to make, as respects the cases in relation to which it is exercised—

(i) the full provision to which the power extends or any less provision (whether by way of exception or otherwise),

(ii) the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act,

(iii) any such provision either unconditionally or subject to any specified condition;

and where such a power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes; and powers to make regulations or an order for the purposes of any one provision of this Act are without prejudice to powers to make regulations or an order for the purposes of any other provision.

(4) Without prejudice to any specific provision of this Act, any power conferred by this Act to make regulations or an order (other than the power conferred by section 141(3)) includes power to make thereby such incidental, supplementary, consequential or transitional provision as appears to the authority making the regulations or order to be expedient for the purposes of the regulations or order.

(5) Without prejudice to any specific provision of this Act, a power conferred by any provision of this Act except—

(a) sections 25B(2)(a), 30, 47(6) . . . and 141(3) and paragraph 3(9) of Schedule 7; and

(b) section 121(1) in relation to the definition of “payments by way of occupational or personal pension”; and

to make regulations or an order includes power to provide for a person to exercise a discretion in dealing with any matter.

(5A) But regulations under—

(a) section 147(4) in relation to severe acute respiratory syndrome coronavirus 2, or

(b) section 155B,

may provide for a person to exercise a discretion in dealing with any matter under those regulations.

(6) Any power conferred by this Act to make regulations relating to housing benefit shall include power to make different provision for different areas.

(6A) Regulations under Part VII of this Act relating to housing benefit administered by the Department of the Environment under section 126(3)(b) of the Administration Act shall not be made without the consent of that Department.

(7) Any power of the Department under any provision of this Act, except the provisions mentioned in subsection (5)(a) and (b) above and Part IX, to make any regulations or order, where the power is not expressed to be exercisable with the consent of the Department of Finance and Personnel shall if that Department so directs be exercisable only in conjunction with it.

(8) Any power under any of sections 116 to 119 above to modify provisions of this Act or the Administration Act extends also to modifying so much of any other provision of this Act or that Act as re-enacts provisions of the 1975 Act which replaced provisions of the National Insurance (Industrial Injuries) Measures (Northern Ireland) 1966 to 1974.

(9) A power to make regulations under any of sections 116 to 119 above shall be exercisable in relation to any enactment passed or made after this Act which is directed to be construed as one with this Act, but this subsection applies only so far as a contrary intention is not expressed in the enactment, and is without prejudice to the generality of any such direction.

(10) Any power of the Secretary of State, the Treasury or the Commissioners of Inland Revenue under this Act to make regulations or orders is exercisable by statutory instrument, and subsections (3) to (5) above apply to those regulations or orders as they apply to regulations or orders made by the Department.

(11) Any power of the Secretary of State to make an order under section 155A(1) above or regulations under section 116, 155A(4), 157 or 163 above shall if the Treasury so direct be exercisable only in conjunction with them.

(12) Any reference in this section or section 172 below to an order or regulations under this Act includes a reference to an order or regulations made under any provision of an enactment passed or made after this Act which is directed to be construed as one with this Act; but this subsection applies only so far as a contrary intention is not expressed in the enactment, and is without prejudice to the generality of any such direction.

Assembly, etc. control of regulations and orders

172

(1) The regulations and orders to which this subsection applies shall be laid before the Assembly after being made and shall take effect on such date as may be specified in the regulations or order, but shall (without prejudice to the validity of anything done thereunder or to the making of new regulations or a new order) cease to have effect upon the expiration of a period of six months from that date unless at some time before the expiration of that period the regulations have, or the order has, been approved by a resolution of the Assembly.

(2) Subsection (1) above applies to—

(a) regulations made by the Department under section ... 19(6), 28(3), 30DD(5)(b) or (c), ... 104(3), ... ... above or section 167ZE(1) ... ... or any of sections 167ZU to 167ZZ2 or sections 167ZZ9 to 167ZZ12 above;

(aa) the first regulations made by virtue of section 23A(3)(c) above;

(b) regulations prescribing payments for the purposes of the definition of “payments by way of occupational or personal pension” in section 121(1) above;

(c) an order made by the Department under section 25B(1), 28(2), 35A(7), ... , ... 144(3)(b) or 153(2) ... or 155A(1) above.

(3) Subsection (1) above does not apply to—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) regulations under any provision mentioned in subsection (2)(a) above ... which are to be made for the purpose of consolidating regulations thereby revoked;

(c) regulations which, in so far as they are made under any provision mentioned in subsection (2)(a) above ... , only replace provisions of previous regulations with new provisions to the same effect.

(4) Subject to subsections (4A) , (7) , (7A) and (7B) below, all regulations and orders made by the Department under this Act, other than regulations or orders to which subsection (1) above applies, shall be subject to negative resolution.

(4A) Subsection (4) above does not apply to a statutory rule which contains an order appointing the first or second appointed year or designating the flat rate introduction year (within the meaning of section 121(1) above).

(5) Section 41(3) of the Interpretation Act (Northern Ireland) 1954 (laying statutory instruments or statutory documents before the Assembly) shall apply in relation to any instrument or document which by virtue of any provision of this Act is required to be laid before the Assembly as if it were a statutory instrument or statutory document within the meaning of that Act.

(6) This subsection applies to any regulations or order made under this Act which—

(a) but for subsection (7) below, would be subject to negative resolution, and

(b) are or is contained in a statutory rule which includes any regulations or order subject to the confirmatory procedure.

(7) Any regulations or order to which subsection (6) above applies shall not be subject to negative resolution, but shall be subject to the confirmatory procedure.

(7A) An order under section 167ZBA(6) shall not be made unless a draft has been laid before, and approved by a resolution of, the Assembly.

(7B) The first regulations under section 167ZZ19 must not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the Assembly.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Subject to subsections (11) to (11B) below, regulations made under this Act by the Secretary of State , the Treasury or the Commissioners of Inland Revenue shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(10) This subsection applies to any regulations made under this Act which—

(a) but for subsection (11) below, would be subject to annulment in pursuance of a resolution of either House of Parliament, and

(b) are, or is, contained in an instrument which is subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament.

(11) Any regulations to which subsection (10) above applies shall not be subject as mentioned in paragraph (a) of that subsection, but shall be subject to the procedure described in paragraph (b) of that subsection.

(11ZA) A statutory instrument containing (whether alone or with other provisions) regulations under section 5 specifying the lower earnings limit for—

(a) the tax year following the designated tax year (see section 5(4) of the Pensions Act 2007), or

(b) any subsequent tax year,

shall not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

(11ZB) A statutory instrument containing (whether alone or with other provisions) regulations under section 5 specifying the upper earnings limit shall not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

(11A) A statutory instrument containing (whether alone or with other provisions) regulations made by virtue of section 4B(2), 4C, 9A(7), section 9B(4), (8) or (10), 10ZC, 11(8) or (9) , 14A, 18, 18A, 19(4) and (5), 117 , 118 or 141 or an order under section 155A shall not be made unless a draft of the instrument has been laid before Parliament and been approved by resolution of each House of Parliament.

(11B) Subsection (11A) above does not apply to a statutory instrument by reason only that it contains —

(a) regulations under section 117 which the instrument states are made for the purpose of making provision consequential on provision under section 129 or 142(7) of the Administration Act,

(b) regulations under powers conferred by any provision mentioned in that subsection which are to be made for the purpose of consolidating regulations to be revoked in the instrument, or

(c) regulations which, in so far as they are made under powers conferred by any provision mentioned in that subsection, only replace provisions of previous regulations with new provisions to the same effect.

(11C) In the case of a statutory instrument containing (whether alone or with other provisions) regulations made by virtue of section 4B(2) to which subsection (11A) above applies, the draft of the instrument must be laid before Parliament before the end of the period of 12 months beginning with the appropriate date.

(11D) For the purposes of subsection (11C), the “appropriate date” means—

(a) where the corresponding retrospective tax provision was passed or made before the day on which the National Insurance Contributions Act 2006 was passed, the date upon which that Act was passed, and

(b) in any other case, the date upon which the corresponding retrospective tax provision was passed or made.

(11E) For the purposes of subsection (11D), “the corresponding retrospective tax provision” in relation to the regulations means—

(a) the retrospective tax provision mentioned in subsection (1) of section 4B in relation to which the regulations are to be made by virtue of subsection (2) of that section, or

(b) where there is more than one such tax provision, whichever of those provisions was the first to be passed or made.

(12) In this section—

“the Assembly” means the Northern Ireland Assembly;

“the confirmatory procedure” means the procedure described in subsection (1) above;

“subject to negative resolution” has the meaning assigned by section 41(6) of the Interpretation Act (Northern Ireland) 1954 (but as if the regulations or orders in question were statutory instruments within the meaning of that Act).

Supplementary

Short title, commencement and extent

173

(1) This Act may be cited as the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

(2) This Act is to be read, where appropriate, with the Administration Act and the Consequential Provisions Act.

(3) The enactments consolidated by this Act are repealed, in consequence of the consolidation, by the Consequential Provisions Act.

(4) Except as provided in Schedule 4 to the Consequential Provisions Act, this Act shall come into force on 1st July 1992.

(5) Except as provided by this section, this Act extends to Northern Ireland only.

(6) Section 116(2) and this section also extend to Great Britain.

SCHEDULE 1

Class 1 contributions where earner employed in more than one employment

1

(1) For the purposes of determining whether Class 1 contributions are payable in respect of earnings paid to an earner in a given week and, if so, the amount of the contributions—

(a) all earnings paid to him or for his benefit in that week in respect of one or more employed earner’s employments under the same employer shall, except as may be provided by regulations, be aggregated and treated as a single payment of earnings in respect of one such employment; and

(b) earnings paid to him or for his benefit in that week by different persons in respect of different employed earner’s employments shall in prescribed circumstances be aggregated and treated as a single payment of earnings in respect of one such employment;

and regulations may provide that the provisions of this sub-paragraph shall have effect in cases prescribed by the regulations as if for any reference to a week there were substituted a reference to a period prescribed by the regulations.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Where any single payment of earnings is made in respect of two or more employed earner’s employments under different employers, liability for Class 1 contributions shall be determined by apportioning the payment to such one or more of the employers as may be prescribed, and treating a part apportioned to any employer as a separate payment of earnings by him.

(8) Where earnings are aggregated under sub-paragraph (1)(b) above, liability (if any) for the secondary contribution shall be apportioned, in such manner as may be prescribed, between the secondary contributors concerned.

(8A) Regulations under any provision of this paragraph shall be made by the Inland Revenue.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings not paid at normal intervals

2

Regulations made by the Inland Revenue may, for the purposes of Class 1 contributions, make provision as to the intervals at which payments of earnings are to be treated as made.

Method of paying Class 1 contributions

3

(1) Where earnings are paid to an employed earner and in respect of that payment liability arises for primary and secondary Class 1 contributions, the secondary contributor shall (except in prescribed circumstances), as well as being liable for any secondary contribution of his own, be liable in the first instance to pay also the earner’s primary contribution or a prescribed part of the earner’s primary contribution , on behalf of and to the exclusion of the earner; and for the purposes of this Act and the Administration Act contributions paid by the secondary contributor on behalf of the earner shall be taken to be contributions paid by the earner.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) A secondary contributor shall be entitled, subject to and in accordance with regulations, to recover from an earner the amount of any primary Class 1 contribution paid or to be paid by him on behalf of the earner; and, subject to sub-paragraphs (3A) to (5) below but notwithstanding any other provision in any enactment, regulations under this sub-paragraph shall provide for recovery to be made by deduction from the earner’s earnings, and for it not to be made in any other way.

(3A) Sub-paragraph (3B) applies where a person (“the employee”) who is employed by a particular employer (“the employer”) receives earnings in a form other than money (“non-monetary earnings”) from the employer in a tax year.

(3B) If and to the extent that regulations so provide, the employer may recover from the employee, in the prescribed manner, any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of those earnings.

(4) Sub-paragraph (5) below applies in a case where—

(a) a person (“the employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and

(b) the employee receives from the employer in the cessation year, after the cessation of the employment, or in the next tax year non-monetary earnings.

(5) If and to the extent that regulations so provide, the employer may recover from the employee in such manner as may be prescribed any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of—

(a) the non-monetary earnings mentioned in sub-paragraph (4) above; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

(6) Regulations under any provision of this paragraph shall be made by the Inland Revenue.

General provisions as to Class 1 contributions

4

Regulations made by the Inland Revenue may, in relation to Class 1 contributions, make provision—

(a) for calculating the amounts payable according to a scale prepared from time to time by the Inland Revenue or otherwise adjusting them so as to avoid fractional amounts or otherwise facilitate computation;

(b) for requiring that the liability in respect of a payment made in a tax week, in so far as the liability depends on any conditions as to a person’s age or retirement, shall be determined as at the beginning of the week or as at the end of it;

(c) for securing that liability is not avoided or reduced by a person following in the payment of earnings any practice which is abnormal for the employment in respect of which the earnings are paid; and

(d) without prejudice to sub-paragraph (c) above, for enabling the Inland Revenue, where they are satisfied as to the existence of any practice in respect of the payment of earnings whereby the incidence of Class 1 contributions is avoided or reduced by means of irregular or unequal payments, to give directions for securing that such contributions are payable as if that practice were not followed.

Class 1A contributions

5

Regulations made by the Inland Revenue may—

(a) make provision for calculating the amount of Class 1A contributions so as to avoid fractional amounts;

(b) modify section 10 above in relation to cases where something is provided or made available by reason of two or more employed earner’s employments under different employers.

Power to combine collection of contributions with tax

6

(1) Regulations made by the Inland Revenue may—

(a) provide for Class 1, Class 1A, Class 1B or Class 2 contributions to be paid, accounted for and recovered in a similar manner to income tax in relation to which PAYE regulations have effect;

(b) apply or extend with or without modification in relation to such contributions any of the provisions of the Income Tax Acts or of PAYE regulations;

(c) make provision for the appropriation of the payments made by any person between his liabilities in respect of income tax and contributions.

(2) Without prejudice to the generality of sub-paragraph (1) above, the provision that may be made by virtue of paragraph (a) of that sub-paragraph includes in relation to Class 1 , Class 1A or Class 1B contributions—

(a) provision for requiring the payment of interest on sums due in respect of Class 1 or Class 1A contributions which are not paid by the due date, for determining the date (being, in the case of Class 1 contributions, not less than 14 days after the end of the tax year in respect of which the sums are due) from which such interest is to be calculated and for enabling the repayment or remission of such interest;

(b) provision for requiring the payment of interest on sums due in respect of Class 1 or Class 1A contributions which fall to be repaid and for determining the date . . . from which such interest is to be calculated;

(c) provision for, or in connection with, the imposition and recovery of penalties in relation to any returns required to be made which relate to Class 1 or Class 1A contributions, but subject to sub-paragraph (7) and paragraph 7 below;

and any reference to contributions or income tax in paragraph (b) or (c) of sub-paragraph (1) above shall be construed as including a reference to any interest or penalty in respect of contributions or income tax, as the case may be.

(3) The rate of interest applicable for any purpose of this paragraph shall be—

(a) the rate from time to time prescribed for that purpose under section 178 of the Finance Act 1989 for the purpose of any enactment (whether or not extending to Northern Ireland) if prescribed by regulations made by virtue of this paragraph; or

(b) such other rate as may be prescribed by such regulations.

(4) Where—

(a) a decision relating to contributions falls to be made under or by virtue of Article 7, 9 or 10 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999; and

(b) the decision will affect a person’s liability for, or the amount of, any interest due in respect of those contributions, regulations under sub-paragraph (1) above shall not require any such interest to be paid until the decision has been made.

(4A) Regulations under sub-paragraph (1) above shall not require the payment of interest on a sum due in respect of a Class 1B contribution if a relevant tax appeal has been brought but not finally determined; and “a relevant tax appeal” means an appeal against a determination as to the amount of income tax in respect of which the person liable to pay the Class 1B contribution is accountable in accordance with the relevant PAYE settlement agreement.

(4B) Interest required to be paid, by virtue of sub-paragraph (2)(a) or (b) above, by regulations under sub-paragraph (1) above shall be paid without any deduction of income tax and shall not be taken into account in computing any income, profits or losses for any tax purposes.

(4C) Interest payable under section 101 of the Finance Act 2009 (late payment interest on sums due to HMRC) on sums due in respect of Class 1 contributions is not to be taken into account in computing any income, profits or losses for any tax purposes.

(5) The Secretary of State may by regulations made with the concurrence of the Inland Revenue make such provision as he considers expedient in consequence of any provision made by or under section 4A, 155A or 163 above.

(6) Provision made in regulations under sub-paragraph (5) above may in particular require the inclusion—

(a) in returns, certificates and other documents; or

(b) in any other form of record;

which the regulations require to be kept or produced or to which those regulations otherwise apply, of such particulars relating to relevant payments or benefits within the meaning of section 4A above or (as the case may be) to statutory sick pay, statutory maternity pay or deductions or payments made by virtue of section 163(1) above as may be prescribed by those regulations.

(7) Section 98 of the Taxes Management Act 1970 shall apply in relation to regulations made under sub-paragraph (1) or (5) as it applies in relation to PAYE regulations.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special penalties in the case of certain returns

7

(1) This paragraph applies where regulations under sub-paragraph (1) of paragraph 6 above make provision requiring any return which is to be made in accordance with a specified provision of regulations under that sub-paragraph (the “contributions return”) to be made—

(a) at the same time as any specified return required to be made in accordance with a provision of PAYE regulations or regulations made under section 70(1)(a) or 71 (sub-contractors) of the Finance Act 2004 to which section 98A of the Taxes Management Act 1970 applies (the “tax return”); or

(b) if the circumstances are such that the return mentioned in paragraph (a) above does not fall to be made, at a time defined by reference to the time for making that return, had it fallen to be made;

and, in a case falling within paragraph (b) above, any reference in the following provisions of this paragraph to the tax return shall be construed as a reference to the return there mentioned.

(2) Where this paragraph applies, regulations under paragraph 6(1) above may provide that section 98A of the Taxes Management Act 1970 (penalties for late, fraudulent or negligent returns) shall apply in relation to any specified provision of regulations in accordance with which the contributions return is required to be made; and where they so provide then, subject to the following provisions of this paragraph—

(a) that section shall apply in relation to the contributions return as it applies in relation to the tax return; and

(b) sections 100 to 100D and 102 to 105 of that Act shall apply in relation to a penalty under section 98A of that Act to which a person is liable by virtue of this sub-paragraph as they apply in relation to any other penalty under that section.

(3) Where a person has been required to pay a penalty under paragraph (a) of subsection (2) of section 98A of that Act (first 12 months’ default) in consequence of a failure in respect of a tax return, he shall not also be required to pay a penalty under that paragraph in respect of any failure in respect of the associated contributions return.

(4) In any case where—

(a) a person is liable to a penalty under subsection (2)(b) or (4) of that section (tax-related penalties) in respect of both a tax return and its associated contributions return, and

(b) an officer of the Inland Revenue authorised for the purposes of section 100 of that Act has determined that a penalty is to be imposed under that provision in respect of both returns,

the penalty so imposed shall be a single penalty of an amount not exceeding the limit determined under sub-paragraph (5) below.

(5) The limit mentioned in sub-paragraph (4) above is an amount equal to the sum of—

(a) the maximum penalty that would have been applicable under subsection (2)(b) or (4) of section 98A of that Act (as the case may be) for a penalty in relation to the tax return only; and

(b) the maximum penalty that would have been so applicable in relation to the associated contributions return only.

(6) So much of any single penalty imposed by virtue of sub-paragraph (4) above as is recovered by the Inland Revenue shall, after the deduction of any administrative costs of the Inland Revenue attributable to its recovery, for the purposes of making any payment into the National Insurance Fund be apportioned between income tax and contributions in the ratio T:C, where—

T is the maximum penalty that could have been imposed under the provision in question in relation to the tax return only; and

C is the maximum penalty that could have been so imposed in relation to the associated contributions return only.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Sub-paragraph (6) above shall have effect notwithstanding any provision which treats a penalty under section 98A of that Act as if it were tax charged in an assessment and due and payable.

(9) In the application of section 98A of that Act by virtue of this paragraph, any reference to a year of assessment shall be construed, in relation to a contributions return, as a reference to the tax year corresponding to that year of assessment.

(10) In the application of section 100D of that Act (court proceedings for penalties in cases of fraud) by virtue of this paragraph—

(a) subsection (2) shall have effect with the omission of the words “England, Wales or” and paragraphs (a) and (b); and

(b) subsection (3) shall have effect with the omission of the words from “instituted in England and Wales” to “and any such proceedings” and the substitution for “that Part of that Act” of “ Part II of the Crown Proceedings Act 1947 ”.

(11) In the application of section 103 of that Act (time limit for recovery) by virtue of this paragraph—

(a) any reference in subsection (1) to tax shall be taken to include a reference to Class 1 , Class 1A and Class 1B contributions;

(b) any penalty by virtue of sub-paragraph (4) above shall be regarded as a penalty in respect of the tax return in question; and

(c) where, by virtue of subsection (2) (death), subsection (1)(b) does not apply in relation to a penalty under section 98A(2)(b) or (4) of that Act in respect of a tax return, it shall also not apply in relation to a penalty so imposed in respect of the associated contributions return.

(12) A penalty under section 98A of that Act as it applies by virtue of this paragraph shall not be imposed where—

(a) a decision relating to contributions falls to be made under or by virtue of Article 7, 9 or 10 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, and has not yet been made; and

(b) the decision will affect a person’s liability for the penalty, or the amount of it.

(13) For the purposes of this paragraph—

(a) “contributions return” and “tax return” shall be construed in accordance with sub-paragraph (1) above; and

(b) a contributions return and a tax return are “associated” if the contributions return is required to be made—

(i) at the same time as the tax return, or

(ii) where sub-paragraph (1)(b) above applies, at a time defined by reference to the time for making the tax return.

General regulation - making powers

8

(1) The appropriate authority may by regulations provide—

(a) for requiring persons to maintain, in such form and manner as may be prescribed, records—

(i) of the earnings paid by them to and in respect of earners, and

(ii) of the contributions paid or payable in respect of earnings so paid,

for the purpose of enabling the incidence of liability for contributions of any class to be determined, and to retain the records for so long as may be prescribed;

(aa) for requiring persons to maintain, in such form and manner as may be prescribed, records of such matters as may be prescribed for purposes connected with the employment allowance provisions (within the meaning of the National Insurance Contributions Act 2014), and to retain the records for so long as may be prescribed;

(b) for requiring persons to maintain, in such form and manner as may be prescribed, records of such matters as may be prescribed for the purpose of enabling the incidence of liability for Class 1A or Class 1B contributions to be determined, and to retain the records for so long as may be prescribed;

(c) for treating primary Class 1 contributions, when payable on the primary contributor’s behalf by the secondary contributor, but not paid, as actually paid where the failure to pay is shown not to have been with the consent or connivance of, or attributable to any negligence on the part of, the primary contributor and, in the case of contributions so treated, for treating them also as paid at a prescribed time or in respect of a prescribed period;

(ca) for requiring a secondary contributor to notify a person to whom any of his liabilities are transferred by an election under paragraph 3B above of—

(i) any transferred liability that arises;

(ii) the amount of any transferred liability that arises; and

(iii) the contents of any notice of withdrawal by the Inland Revenue of any approval that relates to that election;

(d) for treating, for the purpose of any entitlement to benefit, contributions paid at or after any prescribed time as paid at some other time (whether earlier or later) or, in the case of contributions paid after the due date for payment, or at such later date as may be prescribed, as not having been paid;

(e) for enabling contributions to be treated as paid in respect of a tax year earlier or later than that in respect of which they were actually paid;

(f) for treating (for the purposes of Class 2 contributions) a week which falls partly in one, and partly in another, tax year as falling wholly within one or the other of those tax years;

(g) for treating contributions of the wrong class, or at the wrong rate, or of the wrong amount, as paid on account of contributions properly payable (notwithstanding section 14 above, in the case of Class 3 contributions) or as paid (wholly or in part) in discharge of a liability for a contributions equivalent premium;

(h) for the repayment, in prescribed cases, of the whole or a prescribed part of any contributions paid by reference to earnings which have become repayable;

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ia) for the repayment, in prescribed cases, of the whole or a prescribed part of a Class 1A or of a Class 1B contribution;

(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(l) without prejudice to paragraph (g) above, for enabling—

(i) the whole or part of any payment of secondary Class 1 contributions to be treated as a payment of Class 1A contributions or a Class 1B contribution;

(ii) the whole or part of any payment of Class 1A contributions to be treated as a payment of secondary Class 1 contributions , a Class 1B contribution or Class 2 contributions;

(iia) the whole or part of anypayment of a Class 1Bcontribution to be treated as a payment of secondary Class 1 contributions, Class 1A contributions or Class 2 contributions;

(iii) the whole or part of any payment of Class 2 contributions to be treated as a payment of secondary Class 1 contributions , Class 1A contributions or a Class 1B contribution;

(m) for the return of the whole or any prescribed part of any contributions paid either in error or in such circumstances that, under any provision of Part I of this Act or of regulations, they fall to be repaid;

(n) for treating a person as being an employed earner, notwithstanding that his employment is outside Northern Ireland;

(o) for treating a person’s employment as continuing during periods of holiday, unemployment or incapacity for work and in such other circumstances as may be prescribed;

(p) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(q) for any other matters incidental to the payment, collection or return of contributions.

(1A) In sub-paragraph (1), “the appropriate authority” means the Treasury, except that, in relation to—

(a) provision made by virtue of paragraph (d) of that sub-paragraph, and

(b) provision made by virtue of paragraph (q) of that sub-paragraph in relation to the matters referred to in paragraph (d),

it means the Department acting with the concurrence of the Inland Revenue.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

The Treasury may by regulations provide that—

(a) for the purpose of determining whether a contribution is payable in respect of any person, or

(b) for determining the amount or rate of any contribution,

he is to be treated as having attained at the beginning of a week, or as not having attained until the end of a week, any age which he attains during the course of that week.

Sickness payments counting as remuneration

10

(1) The Treasury may by regulations make provision as to the manner in which, and the person through whom, any sickness payment which, by virtue of section 4(1) above, is to be treated as remuneration derived from employed earner’s employment is to be made.

(2) In any case where regulations made under sub-paragraph (1) above have the effect of requiring a registered friendly society (within the meaning of the Friendly Societies Act 1974) to make amendments to its rules, the amendments may, notwithstanding any provision of those rules, be made in accordance with the procedure prescribed by regulations made by the Chief Registrar of Friendly Societies for the purposes of this paragraph.

(3) The power conferred by sub-paragraph (2) above on the Chief Registrar of Friendly Societies to make regulations shall be exercisable by statutory instrument, and—

(a) the Statutory Instruments Act 1946 shall apply to that power as if the Chief Registrar were a Minister of the Crown, and

(b) section 171(3) to (5) above shall apply to those regulations as they apply to regulations made by the Department.

SCHEDULE 2

Interpretation

1

In this Schedule—

(a) “the Act of 1988” means the Income and Corporation Taxes Act 1988;

(ab) “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

(ac) “ITA 2007” means the Income Tax Act 2007;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Method of computing profits or gains

2

Subject to the following paragraphs, Class 4 contributions shall be payable in respect of the full amount of all profits—

(a) which are the profits of any relevant trade, profession or vocation which is not carried on wholly outside the United Kingdom, and

(b) which are chargeable to income tax under Chapter 2 of Part 2 of ITTOIA 2005.

Reliefs

3

(1) For the purposes of computing the amount of profits ... in respect of which Class 4 contributions are payable, relief shall be available under, and in the manner provided by, the following provisions of ITA 2007—

(a) sections 64 and 72 (set-off of trade losses against general income), but only where loss arises from activities the profits ... of which would be brought into computation for the purposes of Class 4 contributions;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) section 89 (carry-back of terminal losses).

(2) The following relief provisions ... shall not apply, that is to say—

(a) Chapter I of Part VII of the Act of 1988 and Chapters 2 and 3 of Part 3 and sections 457, 458 and 459 of ITA 2007 (personal reliefs);

(b) section 383 of ITA 2007 (relief for payment of interest);

(d) sections 88 and 94 of ITA 2007 (treatment of interest as a loss for purposes of carry-forward or carry-back);

(f) sections 619 and 620 (premiums or other consideration under annuity contracts and trust schemes).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Where in the year 1990-1991 or any subsequent year of assessment for which a person claims and is allowed relief by virtue of sub-paragraph (1) above there falls to be made in computing his net income for income tax purposes a deduction in respect of any loss in any relevant trade, profession or vocation—

(a) the amount of the deduction shall, as far as may be, be treated for the purpose of the charge to Class 4 contributions as reducing the person’s profits ... for that year of any relevant trade, profession or vocation, and

(b) any excess shall be treated for that purpose as reducing such profits ... for subsequent years (being deducted as far as may be from those of the immediately following year, whether or not the person claims or is entitled to claim relief under this paragraph for that year, and, so far as it cannot be so deducted, then from those of the next year, and so on).

(5) Relief shall be allowed, in respect of—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) payments under section 383 of ITA 2007 (relief for payment of interest), being payments for which relief from income tax is or can be given,

(i) section 900(2) of ITA 2007 (commercial payments made by individuals),

(ii) section 903(5) of that Act (patent royalties), or

(iii) section 906(5) of that Act (certain royalties etc where usual place of abode of owner is abroad),

(d) so much of any payment from which a sum representing income tax must be deducted under section 910(2) of ITA 2007 (proceeds of a sale of patent rights: payments to non-UK residents) as is equal to the amount referred to in that provision as “the chargeable amount”, or

(e) a payment from which a sum representing income tax must be deducted as a result of a direction under section 944(2) of ITA 2007 (tax avoidance: certain payments to non-UK residents),

so far as the payment is incurred wholly or exclusively for the purposes of any relevant trade, profession or vocation, by way of deduction from or set-off against profits ... chargeable to Class 4 contributions for the year in which the payments are made; and, in the case of any insufficiency of the profits ... of that year, the payments shall be carried forward and deducted from or set off against the profits ... of any subsequent year (being deducted or set off as far as may be from or against the profits ... of the immediately following year, whether or not relief can be claimed under this paragraph for that year, and so far as it cannot be so deducted, from or against those of the next year, and so on).

Partnerships

4

(1) Where a trade or profession is carried on by two or more persons jointly, the liability of any one of them in respect of Class 4 contributions shall arise in respect of his share of the profits ... of that trade or profession (so far as immediately derived by him from carrying it on); and for this purpose his share shall be aggregated with his share of the profits ... of any other trade, profession or vocation (so far as immediately derived by him from carrying it on or exercising it).

(2) Where sub-paragraph (1) above applies, the Class 4 contributions for which a person is liable in respect of the profits ... of the trade or profession carried on jointly (aggregated, where appropriate, as mentioned in that sub-paragraph) shall be charged on him separately.

Trustees, etc.

5

In any circumstances in which apart from this paragraph a person would—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) by virtue of section 8 of ITTOIA 2005 be assessed and charged to Class 4 contributions in respect of profits ... received or receivable by him in the capacity of trustee,

such contributions shall not be payable either by him or by any other person.

Other provisions

6

(1) Section 86 of the Taxes Management Act 1970 (interest on overdue tax) shall apply in relation to any amount due in respect of Class 4 contributions as it applies in relation to income tax; and section 824 of the Act of 1988 (repayment supplements) shall, with the necessary modifications, apply in relation to Class 4 contributions as it applies in relation to income tax.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

Where an assessment has become final and conclusive for the purposes of income tax for any year, that assessment shall also be final and conclusive for the purposes of computing liability for Class 4 contributions; and no allowance or adjustment of liability, on the ground of diminution of income or loss, shall be taken into account in computing profits ... chargeable to Class 4 contributions unless that allowance or adjustment has previously been made on an application under the special provisions of the Income Tax Acts relating to it, or falls to be allowed under paragraph 3(5) of this Schedule.

8

The provisions of Part V of the Taxes Management Act 1970 (appeals, etc.) shall apply with the necessary modifications in relation to Class 4 contributions as they apply in relation to income tax; but nothing in this Schedule affects the extent to which the Income Tax Acts apply with respect to any decision falling to be made—

(a) under subsection (1) of section 17 above or subsection (1) of section 17 of the Northern Ireland Contributions and Benefits Act as to whether by regulations under that subsection a person is excepted from liability for Class 4 contributions, or his liability is deferred; or

(b) under regulations made by virtue of section 17(3) or (4) or 18 above or section 17(3) or (4) or 18 of the Northern Ireland Contributions and Benefits Act.

...

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 3

Part I — The Conditions

Unemployment benefit

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short-term incapacity benefit

2

(1) The contribution conditions for short-term incapacity benefit are the following.

(2) The first condition is that—

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