Social Security Contributions and Benefits (Northern Ireland) Act 1992

• (1) Except as may be prescribed, a day which falls within the adoption pay period shall not be treated as a day of incapacity for work for the purposes of determining, for this Act, whether it forms part of a period of incapacity for work for the purposes of incapacity benefit.

• (2) Regulations may provide that in prescribed circumstances a day which falls within the adoption pay period shall be treated as a day of incapacity for work for the purposes of determining entitlement to the higher rate of short-term incapacity benefit or to long-term incapacity benefit.

• (3) Regulations may provide that an amount equal to a person’s statutory adoption pay for a period shall be deducted from any such benefit in respect of the same period and a person shall be entitled to such benefit only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it.

• (4) Subject to subsections (5) and (6) below, any entitlement to statutory adoption pay shall not affect any right of a person in relation to remuneration under any contract of service (“contractual remuneration”).

• (5) Subject to subsection (6) below—

• (a) any contractual remuneration paid to a person by an employer of his in respect of a week in the adoption pay period shall go) towards discharging any liability of that employer to pay statutory adoption pay to him in respect of that week; and

• (b) any statutory adoption pay paid by an employer to a person who is an employee of his in respect of a week in the adoption pay period shall go towards discharging any liability of that employer to pay contractual remuneration to him in respect of that week.

• (6) Regulations may make provision as to payments which are, and those which are not, to be treated as contractual remuneration for the purposes of subsections (4) and (5) above.

• (7) In subsection (5) above, “week” means a period of seven days beginning with the day of the week on which the adoption pay period begins.

Crown employment—Part XIIZB

167ZQ

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.

Rate and period of pay

167ZR

• (1) The Department may with the concurrence of the Treasury make regulations modifying any provision of this Part of this Act in such manner as the Department thinks proper in its 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

• (c) in prescribed employment in connection with continental shelf operations.

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

• (a) for any provision of this Part of this Act 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 outside 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 offshore activities) were omitted would nevertheless fall within subsection (2) of that section.

Relationship with benefits and other payments, etc.

167ZS

• (1) In this part of this Act—

• “adoption pay period” has the meaning given by section 167ZN(2) above;

• “the Board” means the Commissioners of Inland Revenue

• “the Department” means the Department for Employment and Learning;

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

• “modifications” includes additions, omissions and amendments, and related expressions are to be read accordingly;

• “prescribed” means prescribed by regulations.

• (2) In this Part of this Act, “employee” means a person who is—

• (a) 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); ...

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

• (3) Regulations may provide—

• (a) for cases where a person who falls within the definition in subsection (2) above is not to be treated as an employee for the purposes of this Part of this Act; and

• (b) for cases where a person who would not otherwise be an employee for the purposes of this Part of this Act is to be treated as an employee for those purposes.

• (4) 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 person is an employee are to be treated as one.

• (5) In this Part of this Act, except sections 167ZN and 167ZP, “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 cases.

• (6) For the purposes of this Part of this Act, a person’s nominal weekly earnings shall, subject to subsection (8) 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 the contract of service with the employer in question.

• (7) For the purposes of subsection (6) above, “earnings” and “relevant period” shall have the meanings given to them by regulations.

• (8) In such cases as may be prescribed, a person’s normal weekly earnings shall be calculated in accordance with regulations.

• (9) 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 the person to elect for all of those contracts to be treated as one contract for the purposes of this Part of this Act or such provisions of this Part of this Act as may be prescribed.

• (10) Regulations under subsection (9) above 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;

• (c) the persons to whom, and the manner in which, notice of such an election is to be given;

• (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 two or more contracts is to be regarded for the purposes of statutory adoption pay as his employer under the contract.

• (11) The powers under subsections (9) and (10) above are without prejudice to any other power to make regulations under this Part of this Act.

• (12) In this Part of this Act, except section 167ZP(1) to (3), “regulations” means regulations made by the Department; and in relation to any such regulations sections 171 and 172 below have effect as if references to the Department were references to the Department for Employment and Learning.

• (13) Regulations under any of subsections (4) to (10) above must be made with the concurrence of the Board.

Part XIIZB: supplementary

167ZT

• (1) The Department may by regulations provide for this Part of this Act to have effect in relation to cases which involve adoption, but not the placement of a child for adoption under the law of any part of the United Kingdom, with such modifications as the regulations may prescribe.

• (2) The Department may by regulations provide for this Part to have effect, with such modifications as may be prescribed, in relation to—

• (a) cases which involve a person who has applied, or intends to apply, with another person for a parental order under section 54 of the Human Fertilisation and Embryology Act 2008 and a child who is, or will be, the subject of the order,

• (b) cases which involve a person who has applied, or intends to apply, for a parental order under section 54A of that Act and a child who is, or will be, the subject of the order.

• (3) Regulations under subsection (2) may modify section 167ZL(8)(c) so as to enable regulations made by virtue of section 167ZL(8) to impose requirements to make statutory declarations as to—

• (a) eligibility to apply for a parental order under section 54 or 54A of the Human Fertilisation and Embryology Act 2008,

• (b) intention to apply for such an order.

PART XIIA — INCAPACITY FOR WORK

Power to apply Part XIIZB to other cases

167A

• (1) For the purposes of this Act, save as otherwise expressly provided, whether a person is capable or incapable of work shall be determined in accordance with this Part of this Act.

• (2) Regulations may make provision as to—

• (a) the information or evidence required for the purpose of determining whether a person is capable or incapable of work; and

• (b) the manner in which that information or evidence is to be provided;

and may provide that if a person without good cause fails to provide that information or evidence, or to do so in the manner required, he shall be treated as capable of work.

• (2A) In subsection (2)(a) above the reference to such information or evidence as is there mentioned includes information or evidence capable of being used for assisting or encouraging the person in question to obtain work or enhance his prospects of obtaining it.

• (3) Regulations may provide that in any case where it falls to be determined whether a person is capable of work—

• (a) he may be called to attend for such medical examination as may be required in accordance with regulations; and

• (b) if he fails without good cause to attend for or submit himself to such examination, he shall be treated as capable of work.

• (4) Regulations may prescribe for the purposes of this section—

• (a) matters which are or are not to be taken into account in determining whether a person does or does not have good cause for any act or omission; or

• (b) circumstances in which a person is or is not to be regarded as having or not having good cause for any act or omission.

• (5) All information supplied in pursuance of this section shall be taken for all purposes to be information relating to social security.

167B

• (1) Where a person has been engaged in remunerative work for more than 8 weeks in the 21 weeks immediately preceding the day with respect to which it falls to be determined whether he is or was incapable of work, the own occupation test is applicable in his case..

• (2) The own occupation test is whether he is incapable by reason of some specific disease or bodily or mental disablement of doing work which he could reasonably be expected to do in the course of the occupation in which he was so engaged.

• (3) Where for any purpose of this Act it is determined in relation to a person—

• (a) that the test applicable with respect to any day is the own occupation test; and

• (b) that he is on that test incapable of work,

that test remains applicable in his case until the end of the spell of incapacity beginning with that day or, as the case may be, in which that day falls, or until the 197th day of incapacity for work in that spell, whichever is the earlier.

• (4) For the purposes of subsection (3) above a day of incapacity for work means a day—

• (a) with respect to which it has been determined for any purpose of this Act that the person in question was incapable of work; or

• (b) in respect of which he was entitled to statutory sick pay; or

• (c) in the case of a woman, which falls within the maternity allowance period; or

• (d) which in accordance with regulations is to be treated for those purposes as a day of incapacity for work.

• (5) Any provision of this Act apart from subsection (4) above under or by virtue of which a day is or is not to be treated for any purpose as a day of incapacity for work shall be disregarded for the purposes of this section.

• (6) Provision may be made by regulations defining for the purposes of this section what is meant by “remunerative work”.

• (7) Provision may be made by regulations as to the application of this section in cases where a person engages in more than one occupation or in different kinds of work.

• (8) Regulations may provide that subsection (3) above shall have effect as if—

• (a) the reference there to 4 consecutive days were to such lesser number of days, whether consecutive or not, within such period of consecutive days as may be prescribed; and

• (b) for the reference to 8 weeks there were substituted a reference to such larger number of weeks as may be prescribed.

167C

• (1) Where the own occupation test is not applicable, or has ceased to apply, in the case of a person, the question whether the person is capable or incapable of work shall be determined in accordance with a personal capability assessment.

• (2) Provision shall be made by regulations—

• (a) defining a personal capability assessment by reference to the extent to which a person who has some specific disease or bodily or mental disablement is capable or incapable of performing such activities as may be prescribed;

• (b) as to the manner of assessing whether a person is, in accordance with a personal capability assessment, incapable of work.

• (3) Regulations may provide that, in any prescribed circumstances, a person to whom subsection (1) above applies shall, if the prescribed conditions are met, be treated as incapable of work in accordance with a personal capability assessment until such time as—

• (a) such an assessment has been carried out in his case, or

• (b) he falls to be treated as capable of work in accordance with regulations under section 167A(2) or (3) above or section 167E below.

• (4) Except in prescribed circumstances, a personal capability assessment carried out in the case of a person before the time when subsection (1) above applies to him shall be as effective for the purposes of that subsection as one carried out thereafter.

• (5) The Department may, in the case of a person who for any purpose of this Act has been determined to be incapable of work in accordance with a personal capability assessment (including one carried out by virtue of this subsection), require the question whether the person is capable or incapable of work to be determined afresh in accordance with a further personal capability assessment.

167D

• (1) Regulations may provide that a person shall be treated as capable of work, or as incapable of work, in such cases or circumstances as may be prescribed.

• (2) Regulations may, in particular, provide that a person shall be treated as capable of work if he does work of a prescribed description, or more than the prescribed amount of work of a prescribed description.

167E

• (1) Regulations may provide for disqualifying a person for receiving any benefit, allowance or other advantage under any provision for the purposes of which this Part of this Act applies, or, in such cases as may be prescribed, provide that a

person shall be treated as capable of work, if—

• (a) he has become incapable of work through his own misconduct;

• (b) he fails without good cause to attend for or submit himself to such medical or other treatment as may be required in accordance with the regulations; or

• (c) he fails without good cause to observe any prescribed rules of behaviour.

• (2) Regulations shall provide that any such disqualification shall be, or as the case may be that the person shall be treated as capable of work, for such period not exceeding 6 weeks as may be determined in accordance with Chapter II of Part II of the Social Security (Northern Ireland) Order 1998.

• (3) Regulations may prescribe for the purposes of this section—

• (a) matters which are or are not to be taken into account in determining whether a person does or does not have good cause for any act or omission; or

• (b) circumstances in which a person is or is not to be regarded as having or not having good cause for any act or omission.

167F

• (1) In determining whether a person is capable or incapable of work, there shall be disregarded any work which that person has undertaken as a councillor.

• (2) For this purpose “councillor” means a member of a district council.

• (3) The reference in subsection (1) above to the work which a person undertakes as a councillor shall be taken to include any work which he undertakes as a member of any body established under any statutory provision of which he is a member by virtue of his being a councillor.

• (4) In making any such determination as is mentioned in subsection (1) above a person shall be treated as having been incapable of work on any day which falls in the pre-commencement period and which—

• (a) would have been treated as a day on which he was so incapable, were there disregarded any work which he undertook (or was capable of undertaking) as a councillor; but

• (b) would not have been so treated apart from this subsection.

167G

• (1) The provisions of this Part of this Act do not apply—

• (a) for the purposes of Part V of this Act (benefit for industrial injuries: see section 94(6) above);

• (b) for the purposes of Part XI of this Act (statutory sick pay: see section 147(4) above); or

• (c) for such other purposes as may be prescribed.

• (2) In this Part of this Act—

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

• “week” means any period of 7 days.

Extent of entitlement and when payable: birth

Prohibition on recovery of employer’s contributions

3A

• (1) Subject to sub-paragraph (2) below, a person who is or has been liable to pay any secondary Class 1 or any Class 1A or Class 1B contributions shall not—

• (a) make, from earnings paid by him, any deduction in respect of any such contributions for which he or any other person is or has been liable;

• (b) otherwise recover any such contributions (directly or indirectly) from any person who is or has been a relevant earner; or

• (c) enter into any agreement with any person for the making of any such deduction or otherwise for the purpose of so recovering any such contributions.

• (2) Sub-paragraph (1) above does not apply to the extent that an agreement between—

• (a) a secondary contributor, and

• (b) any person (“the earner”) in relation to whom the secondary contributor is, was or will be such a contributor in respect of the contributions to which the agreement relates,

allows the secondary contributor to recover (whether by deduction or otherwise) the whole or any part of any secondary Class 1 contribution payable in respect of relevant employment income of that earner.

• (2A) But an agreement in respect of relevant employment income is to be disregarded for the purposes of sub-paragraph (2) to the extent that it relates to —

• (a) relevant employment income which is employment income of the earner by virtue of Chapter 3A of Part 7 of ITEPA 2003 (employment income: securities with artificially depressed market value), or

• (b) any contribution, or any part of any contribution, liability to which arises as a result of regulations being given retrospective effect by virtue of section 4B(2) (earnings: power to make retrospective provision in consequence of retrospective tax legislation).

• (2B) For the purposes of sub-paragraphs (2) and (2A) “relevant employment income”, in relation to the earner, means—

• (a) an amount that counts as employment income of the earner under section 426 of ITEPA 2003 (restricted securities: charge on certain post-acquisition events),

• (b) an amount that counts as employment income of the earner under section 438 of that Act (convertible securities: charge on certain post-acquisition events), or

• (c) a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above.

• (3) Sub-paragraph (2) above does not authorise any recovery (whether by deduction or otherwise)—

• (a) in pursuance of any agreement entered into before 19th May 2000; or

• (b) in respect of any liability to a contribution arising before the day of the passing of the Child Support, Pensions and Social Security Act 2000.

• (4) In this paragraph—

• “agreement” includes any arrangement or understanding (whether or not legally enforceable); and

• “relevant earner”, in relation to a person who is or has been liable to pay any contributions, means an earner in respect of whom he is or has been so liable.

Transfer of liability to be borne by earner

3B

• (1) This paragraph applies where—

• (a) an election is jointly made by—

• (i) a secondary contributor, and

• (ii) a person (“the earner”) in relation to whom the secondary contributor is or will be such a contributor in respect of contributions on relevant employment income of the earner,

for the whole or a part of any liability of the secondary contributor to contributions on any such income to be transferred to the earner; and

• (b) the election is one in respect of which the Inland Revenue have, before it was made, given by notice to the secondary contributor their approval to both—

• (i) the form of the election; and

• (ii) the arrangements made in relation to the proposed election for securing that the liability transferred by the election will be met.

• (1A) In this paragraph “relevant employment income”, in relation to the earner, means—

• (a) an amount that counts as employment income of the earner under section 426 of ITEPA 2003 (restricted securities: charge on certain post-acquisition events),

• (b) an amount that counts as employment income of the earner under section 438 of that Act (convertible securities: charge on certain post-acquisition events), or

• (c) a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above,

and references to contributions on relevant employment income are references to any secondary Class 1 contributions payable in respect of that income.

• (2) Any liability which—

• (a) arises while the election is in force, and

• (b) is a liability to pay the contributions on relevant employment income of the earner, or the part of it, to which the election relates,

shall be treated for the purposes of this Act, the Administration Act and Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 as a liability falling on the earner, instead of on the secondary contributor.

• (3) Subject to sub-paragraphs (7)(b) and (7B) below, an election made for the purposes of sub-paragraph (1) above shall continue in force from the time when it is made until whichever of the following first occurs, namely—

• (a) it ceases to have effect in accordance with its terms;

• (b) it is revoked jointly by both parties to the election;

• (c) notice is given to the earner by the secondary contributor terminating the effect of the election.

• (4) An approval given to the secondary contributor for the purposes of sub-paragraph (1)(b) above may be given either—

• (a) for an election to be made by the secondary contributor and a particular person; or

• (b) for all elections to be made, or to be made in particular circumstances, by the secondary contributor and particular persons or by the secondary contributor and persons of a particular description.

• (5) The grounds on which the Inland Revenue shall be entitled to refuse an approval for the purposes of sub-paragraph (1)(b) above shall include each of the following—

• (a) that it appears to the Inland Revenue that adequate arrangements have not been made for securing that the liabilities transferred by the proposed election or elections will be met by the person or persons to whom they would be so transferred; and

• (b) that it appears to the Inland Revenue that they do not have sufficient information to determine whether or not grounds falling within paragraph (a) above exist.

• (6) If, at any time after they have given an approval for the purposes of sub-paragraph (1)(b) above, it appears to the Inland Revenue—

• (a) that the arrangements that were made or are in force for securing that liabilities transferred by elections to which the approval relates are met are proving inadequate or unsatisfactory in any respect, or

• (b) that any election to which the approval relates has resulted, or is likely to result, in the avoidance or non-payment of the whole or any part of any secondary Class 1 contributions,

the Inland Revenue may withdraw the approval by notice to the secondary contributor.

• (7) The withdrawal by the Inland Revenue of any approval given for the purposes of sub-paragraph (1)(b) above—

• (a) may be either general or confined to a particular election or to particular elections; and

• (b) shall have the effect that the election to which the withdrawal relates has no effect on contributions on relevant employment income if—

• (i) that income is within sub-paragraph (1A)(a) or (b) and the securities, or interest in securities, to which it relates were or was acquired after the withdrawal date, or

• (ii) that income is within sub-paragraph (1A)(c) and the right to acquire securities to which it relates was acquired after that date.

• (7A) In sub-paragraph (7)(b) “the withdrawal date” means—

• (a) the date on which notice of the withdrawal of the approval is given, or

• (b) such later date as the Inland Revenue may specify in that notice.

• (7B) An election is void for the purposes of sub-paragraph (1) to the extent that it relates to —

• (a) relevant employment income which is employment income of the earner by virtue of Chapter 3A of Part 7 of ITEPA 2003 (employment income: securities with artificially depressed market value), or

• (b) any liability, or any part of any liability, to a contribution arising as a result of regulations being given retrospective effect by virtue of section 4B(2) (earnings: power to make retrospective provision in consequence of retrospective tax legislation).

• (8) Where the Inland Revenue have refused or withdrawn their approval for the purposes of sub-paragraph (1)(b) above, the person who applied for it or, as the case may be, to whom it was given may appeal ... against the Inland Revenue’s decision.

• (9) On an appeal under sub-paragraph (8) above that is notified to the tribunal, the tribunal may—

• (a) dismiss the appeal;

• (b) remit the decision appealed against to the Inland Revenue with a direction to make such decision as the tribunal thinks fit; or

• (c) in the case of a decision to withdraw an approval, quash that decision and direct that that decision is to be treated as never having been made.

• (10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respect of income which, before the election was made, counted as employment income for a tax year by virtue of Part 7 of ITEPA 2003.

• (11) Regulations made by the Inland Revenue may make provision with respect to the making of elections for the purposes of this paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, in particular—

• (a) prescribe the matters that must be contained in such an election;

• (b) provide for the manner in which such an election is to be capable of being made and of being confined to particular liabilities or the part of particular liabilities; and

• (c) provide for the making of applications for such approvals and for the manner in which those applications are to be dealt with.

• (12) Where—

• (a) an election is made under this paragraph before the end of the period of three months beginning with the date of the passing of the Child Support, Pensions and Social Security Act 2000, and

• (b) that election is expressed to relate to liabilities for contributions arising on or after 19th May 2000 and before the making of the election, this paragraph shall have effect in relation to those liabilities as if sub-paragraph (2) above provided for them to be deemed to have fallen on the earner (instead of on the secondary contributor); and the secondary contributor shall accordingly be entitled to reimbursement from the earner for any payment made by that contributor in or towards the discharge of any of those liabilities.

• (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (14) In this paragraph “tribunal” means the First-tier Tribunal or, where determined under Tribunal Procedure Rules, the Upper Tribunal;

Class 1B contributions

5A

Regulations made by the Inland Revenue may make provision for calculating the amount of Class 1B contributions so as to avoid fractional amounts.

7A

• (1) This paragraph applies where paragraph 7 above applies; and in this paragraph “contributions return” has the same meaning as in that paragraph.

• (2) Without prejudice to paragraph 7(2) above or to the other powers of the Inland Revenue to penalise omissions or errors in returns, regulations made by the Treasury may provide for the Inland Revenue to impose penalties in respect of a person who, in making a contributions return, fraudulently or negligently—

• (a) fails to provide any information or computation that he is required to provide; or

• (b) provides any such information or computation that is incorrect.

• (3) Regulations under sub-paragraph (2) above shall—

• (a) prescribe the rates of penalty, or provide for how they are to be ascertained;

• (b) provide for the penalty to be imposed by the Inland Revenue within 6 years after the date on which the penalty is incurred;

• (c) provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;

• (d) prescribe the means by which the penalty is to be enforced; and

• (e) provide for enabling the Inland Revenue, in their discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.

Collection of contributions otherwise than through PAYE system

7B

• (1) The Treasury may by regulations provide that, in such cases or circumstances as may be prescribed, Class 1, Class 1A, Class 1B or Class 2 contributions shall be paid to the Inland Revenue in a manner different from that in which income tax in relation to which PAYE regulations apply is payable.

• (2) Regulations under this paragraph may, in particular—

• (a) provide for returns to be made to the Inland Revenue by such date as may be prescribed;

• (b) prescribe the form in which returns are to be made, or provide for returns to be made in such form as the Inland Revenue may approve;

• (c) prescribe the manner in which contributions are to be paid, or provide for contributions to be paid in such manner as the Inland Revenue may approve;

• (d) prescribe the due date for the payment of contributions;

• (e) require interest to be paid on contributions that are not paid by the due date, and provide for determining the date from which such interest is to be calculated;

• (f) provide for interest to be paid on contributions that fall to be repaid;

• (g) provide for determining the date from which interest to be charged or paid pursuant to regulations under paragraph (e) or (f) above is to be calculated;

• (h) provide for penalties to be imposed in respect of a person who—

• (i) fails to submit, within the time allowed, a return required to be made in accordance with regulations under paragraph (a) above;

• (ii) in making such a return, fraudulently or negligently fails to provide any information or computation that he is required to provide;

• (iii) in making such a return, fraudulently or negligently provides any incorrect information or computation; or

• (iv) fails to pay Class 2 contributions by the due date;

• (i) provide for a penalty imposed pursuant to regulations under paragraph (h) above to carry interest from the date on which it becomes payable until payment.

• (3) Where—

• (a) a decision relating to contributions falls to be made under Article 9, 10, 11, 13 or 15 of the Social Security (Northern Ireland) Order 1998 or section 22 of the Administration Act; 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 (2)(e) above shall not require any such interest to be paid until the decision has been made.

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

• (5) Regulations under sub-paragraph (2)(h) above shall—

• (a) prescribe the rates of penalty, or provide for how they are to be ascertained;

• (b) ... provide for the penalty to be imposed by the Inland Revenue—

• (i) within 6 years after the date on which the penalty is incurred; or

• (ii) where the amount of the penalty is to be ascertained by reference to the amount of any contributions payable, at any later time within 3 years after the final determination of the amount of those contributions;

• (c) provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;

• (d) prescribe the means by which the penalty is to be enforced; and

• (e) provide for enabling the Inland Revenue, in their discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.

• (5A) Regulations under this paragraph may, in relation to any penalty imposed by such regulations, make provision applying (with or without modifications) any enactment applying for the purposes of income tax that is contained in Part X of the Taxes Management Act 1970 (penalties).

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

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

• (8) Interest or penalties may be charged by virtue of regulations under this paragraph in respect of a period before the coming into operation of Article 54 of the Social Security (Northern Ireland) Order 1998 but only to the extent that interest or penalties would have been chargeable if the contributions in question had been recoverable, in respect of that period, by virtue of regulations under paragraph 6 above.

• (9) Any reference to contributions in sub-paragraph (1) above shall be construed as including a reference to any interest or penalty payable, in respect of contributions, by virtue of regulations under paragraph (e) or (h) of sub-paragraph (2) above.

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

• (a) the rate from time to time prescribed 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.

7BA

The Inland Revenue may by regulations provide for amounts in respect of contributions or interest that fall to be paid or repaid in accordance with any regulations under this Schedule to be set off, or to be capable of being set off, in prescribed circumstances and to the prescribed extent, against any such liabilities under regulations under this Schedule of the person entitled to the payment or repayment as may be prescribed.

Interest and penalties chargeable concurrently with Inland Revenue

7C

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

Note: This Schedule is subject to alteration by orders made by the Department under section 132 of the Administration Act.

SCHEDULE 4A

PART I — THE AMOUNT

1

• (1) The amount referred to in section 45(2)(c) above is to be calculated as follows—

• (a) take for each tax year concerned the amount for the year which is found under the following provisions of this Schedule;

• (b) add the amounts together;

• (c) divide the sum of the amounts by the number of relevant years;

• (d) the resulting amount is the amount referred to in section 45(2)(c) above, except that if the resulting amount is a negative one the amount so referred to is nil.

• (2) For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section ... 39C(1) ... or 48B(2) above, in a case where the deceased spouse died under pensionable age, or by virtue of section 39C(1) above, in a case where the deceased cohabiting partner died under pensionable age or by virtue of section 39C(1) ... or 48B(2) above, in a case where the deceased civil partner died under pensionable age, the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

• (3) The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the entitlement to the additional pension commences.

• (4) The second alternative number is the number of tax years in the period—

• (a) beginning with the tax year in which the deceased spouse, civil partner or cohabiting partner attained the age of 16 or, if later, 1978-79; and

• (b) ending immediately before the tax year in which the deceased spouse, civil partner or cohabiting partner would have attained pensionable age if he had notdied earlier.

• (5) For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section 48BB(5) above, in a case where the deceased spouse or civil partner died under pensionable age, the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

• (6) The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the deceased spouse or civil partner dies.

• (7) The second alternative number is the number of tax years in the period—

• (a) beginning with the tax year in which the deceased spouse or civil partner attained the age of 16 or, if later, 1978-79; and

• (b) ending immediately before the tax year in which the deceased spouse or civil partner would have attained pensionable age if he had not died earlier.

• (8) In this paragraph “relevant year” has the same meaning as in section 44 above.

PART II — SURPLUS EARNINGS FACTOR

2

• (1) This Part of this Schedule applies if for the tax year concerned there is a surplus in the pensioner’s earnings factor.

• (2) The amount for the year is to be found as follows—

• (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

• (b) multiply the amount of each such part in accordance with the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year;

• (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

• (d) add together the amounts calculated under paragraph (c) above.

• (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40 + 2N
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10 + N/2
Band 3.	Exceeding 3LET - 2QEF	20 + N

• (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned falls before 2010–11 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10
Band 3.	Exceeding 3LET - 2QEF	20

• (4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET ...	10

• (5) Regulations may provide, in relation to persons attaining pensionable age after such date as may be prescribed, that the amount found under this Part of this Schedule for the second appointed year or any subsequent tax year is to be calculated using only so much of the surplus in the pensioner’s earnings factor for that year as falls into Band 1 in the table in sub-paragraph (4) above.

• (6) For the purposes of the tables in this paragraph—

• (a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

• (b) “LET” means the low earnings threshold for that year as specified in section 44A above;

• (c) “QEF” means the qualifying earnings factor for the tax year concerned;

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) In the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

• (8) In this paragraph “final relevant year” has the same meaning as in section 44 above.

PART III — CONTRACTED-OUT EMPLOYMENT, ETC.

Introduction

3

• (1) This Part of this Schedule applies if the following condition is satisfied in relation to each tax week in the tax year concerned.

• (2) The condition is that any earnings paid to or for the benefit of the pensioner in the tax week in respect of employment were in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme or by an appropriate personal pension scheme.

• (3) If the condition is satisfied in relation to one or more tax weeks in the tax year concerned, Part II of this Schedule does not apply in relation to the year.

The amount

4

The amount for the year is amount C where—

• (a) amount C is equal to amount A minus amount B, and

• (b) amounts A and B are calculated as follows.

Amount A

5

• (1) Amount A is to be calculated as follows.

• (2) If there is an assumed surplus in the pensioner’s earnings factor for the year—

• (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

• (b) multiply the amount of each such part in accordance with the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year;

• (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

• (d) add together the amounts calculated under paragraph (c) above.

• (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40 + 2N
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10 + N/2
Band 3.	Exceeding 3LET - 2QEF	20 + N

• (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned falls before 2010–11 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10
Band 3.	Exceeding 3LET - 2QEF	20

• (4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET ...	10

Amount B (first case)

6

• (1) Amount B is to be calculated in accordance with this paragraph if the pensioner’s employment was entirely employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme.

• (2) If there is an assumed surplus in the pensioner’s earnings factor for the year—

• (a) multiply the amount of the assumed surplus in accordance with the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year;

• (b) multiply the amount found under paragraph (a) above by the percentage specified in sub-paragraph (3) below.

• (3) The percentage is—

• (a) 20 + N if the person attained pensionable age after the end of the first appointed year but before 6th April 2009;

• (b) 20 if the person attained pensionable age on or after 6th April 2009.

Amount B (second case)

7

• (1) Amount B is to be calculated in accordance with this paragraph if the pensioner’s employment was entirely employment qualifying him for a pension provided by an appropriate personal pension scheme.

• (2) If there is an assumed surplus in the pensioner’s earnings factor for the year—

• (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

• (b) multiply the amount of each such part in accordance with the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year;

• (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

• (d) add together the amounts calculated under paragraph (c) above.

• (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40 + 2N
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10 + N/2
Band 3.	Exceeding 3LET - 2QEF	20 + N

• (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned falls before 2010–11 is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET but not exceeding 3LET - 2QEF	10
Band 3.	Exceeding 3LET - 2QEF	20

• (4A) The appropriate table for persons attaining pensionable age on or after 6th April 2009 where the tax year concerned is 2010–11 or a subsequent tax year is as follows—

Amount of surplus	Amount of surplus	Percentage
Band 1.	Not exceeding LET	40
Band 2.	Exceeding LET ...	10

Interpretation

8

• (1) In this Part of this Schedule “salary related contracted-out scheme”, “money purchase contracted-out scheme” and “appropriate personal pension scheme” have the same meanings as in the Pensions Act.

• (2) For the purposes of this Part of this Schedule the assumed surplus in the pensioner’s earnings factor for the year is the surplus there would be in that factor for the year if section 44A(1) of the Pensions Act (no primary Class 1 contributions deemed to be paid) did not apply in relation to any tax week falling in the year.

• (3) Section 44A above shall be ignored in applying section 44(6) above for the purposes of calculating amount B.

• (4) For the purposes of this Part of this Schedule—

• (a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

• (b) “LET” means the low earnings threshold for that year as specified in section 44A above;

• (c) “QEF” is the qualifying earnings factor for the tax year concerned;

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) In the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

• (6) In this Part of this Schedule “final relevant year” has the same meaning as in section 44 above.

PART IV — OTHER CASES

9

The Department may make regulations containing provisions for finding the amount for a tax year in—

• (a) cases where the circumstances relating to the pensioner change in the course of the year;

• (b) such other cases as the Department thinks fit.

5A

• (1) This paragraph applies where W (referred to in paragraph 5 above) is a woman—

• (a) whose deceased spouse was a man, or

• (b) who falls within paragraph 7(3) below.

• (2) Where the spouse dies before 6th October 2002, the amounts referred to in paragraph 5(2)(a) above are the following—

• (a) an amount equal to one-half of the increase mentioned in paragraph 5(1)(b) above,

• (b) the appropriate amount, and

• (c) an amount equal to any increase to which the spouse had been entitled under paragraph 5 above.

• (3) Where the spouse dies after 5th October 2002, the amounts referred to in paragraph 5(2)(a) above are the following—

• (a) one-half of the appropriate amount ... , and

• (b) one-half of any increase to which the spouse had been entitled under paragraph 5 above.

1A

Regulations under paragraph 1 above must be made with the concurrence of the Treasury.

1

Except as may be prescribed, a day which falls within the maternity pay period shall not be treated as a day of incapacity for work for the purposes of determining, for this Act, whether it forms part of a period of incapacity for work for the purposes of incapacity benefit.

2

• (1) Regulations may provide that in prescribed circumstances a day which falls within the maternity pay period shall be treated as a day of incapacity for work for the purpose of determining entitlement to the higher rate of short-term incapacity benefit or to long-term incapacity benefit.

• (2) Regulations may provide that an amount equal to a woman’s statutory maternity pay for a period shall be deducted from any such benefit in respect of the same period and a woman shall be entitled to such benefit only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it.

3

• (1) Subject to sub-paragraphs (2) and (3) below, any entitlement to statutory maternity pay shall not affect any right of a woman in relation to remuneration under any contract of service (“contractual remuneration”).

• (2) Subject to sub-paragraph (3) below—

• (a) any contractual remuneration paid to a woman by an employer of hers in respect of a week in the maternity pay period shall go towards discharging any liability of that employer to pay statutory maternity pay to her in respect of that week; and

• (b) any statutory maternity pay paid by an employer to a woman who is an employee of his in respect of a week in the maternity pay period shall go towards discharging any liability of that employer to pay contractual remuneration to her in respect of that week.

• (2A) In sub-paragraph (2) “week” means a period of 7 days beginning with the day of the week on which the maternity pay period begins.

• (3) Regulations may make provision as to payments which are, and those which are not, to be treated as contractual remuneration for the purposes of sub-paragraphs (1) and (2) above.

SCHEDULE

Note:

2

The Table does not contain any entries in respect of Article 2(3) of the Social Security Pensions (Northern Ireland) Order 1975 (NI 15) under which, with certain exceptions, that Order and the Social Security (Northern Ireland) Act 1975 (c. 15) have effect as if the provisions of the Order were contained in the Social Security (Northern Ireland) Act 1975. The effect is that the general provisions of the Social Security (Northern Ireland) Act 1975 apply to the provisions of that Order.

3

The Table does not show the effect of transfer of functions orders.

Editorial notes