National Insurance Contributions Act 2015
SSCBA 1992 is amended as follows.
In section 9 (calculation of secondary Class 1 contributions), in subsection (1A), after paragraph (a) insert—.
In section 9A (the age-related secondary percentage), after subsection (1) insert—
After section 9A insert—
In section 176(1)(a) (regulations subject to affirmative procedure), after “section 9A(7);” insert— “ section 9B(4), (8) or (10); ”.
SSCB(NI)A 1992 is amended as follows.
In section 9 (calculation of secondary Class 1 contributions), in subsection (1A), after paragraph (a) insert—.
In section 9A (the age-related secondary percentage), after subsection (1) insert—
After section 9A insert—
In section 172(11A) (regulations subject to affirmative procedure), after “9A(7),” insert “ section 9B (4), (8) or (10), ”.
The amendments made by this section come into force—
for the purposes of making regulations under section 9B of SSCBA 1992 or section 9B of SSCB(NI)A 1992, at the end of the period of 2 months beginning with the day on which this Act is passed, and
for remaining purposes, on 6 April 2016.
Schedule 1 contains provision relating to Class 2 national insurance contributions.
The Treasury may by regulations make consequential, incidental or supplementary provision in connection with the provision made in Schedule 1.
Regulations under this section may modify any provision of an Act or an instrument made under an Act.
In subsection (2) “modify” includes amend, repeal or revoke.
Section 175(3) to (5) of SSCBA 1992 (various supplementary powers) applies to the power to make regulations conferred by this section.
Regulations under this section must be made by statutory instrument.
A statutory instrument containing (with or without other provision) regulations under this section that amend or repeal a provision of an Act may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
A statutory instrument containing regulations under this section that does not have to be approved in draft under subsection (6) is subject to annulment in pursuance of a resolution of either House of Parliament.
Part 1 of Schedule 2 applies Part 4 of FA 2014 (follower notices and accelerated payments) to Class 1, 1A, 1B and certain Class 2 contributions.
Part 2 of that Schedule applies Part 5 of that Act (promoters of tax avoidance schemes) to Class 1, 1A, 1B and certain Class 2 contributions.
Part 3 of that Schedule applies Parts 4 and 5 of that Act to Class 4 contributions.
Part 4 of that Schedule contains commencement and transitory provision.
Where a modification is made to Part 4 of FA 2014 (follower notices and accelerated payments) or Part 5 of that Act (promoters of tax avoidance schemes) that does not apply in relation to national insurance contributions (“the tax-only modification”), the Treasury may by regulations—
make provision for the purpose of applying the tax-only modification in relation to national insurance contributions (with or without modifications),
make provision in relation to national insurance contributions corresponding to the tax-only modification, or
otherwise modify the Part concerned, as it has effect in relation to national insurance contributions, in consequence of, or for the purpose of making provision supplementary or incidental to, the tax-only modification.
Regulations under this section—
may amend, repeal or revoke any provision of an Act or instrument made under an Act (whenever passed or made),
may make consequential, incidental, supplementary, transitional, transitory or saving provision, and
may make different provision for different cases, classes of national insurance contributions or purposes.
Regulations under this section must be made by statutory instrument.
A statutory instrument containing (with or without other provision) regulations under this section that amend or repeal a provision of an Act may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
A statutory instrument containing regulations under this section that does not have to be approved in draft under subsection (4) is subject to annulment in pursuance of a resolution of either House of Parliament.
In this section “national insurance contributions” means contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.
This section comes into force at the end of the period of 2 months beginning with the day on which this Act is passed.
In the Social Security (Categorisation of Earners) Regulations 1978 (S.I. 1978/1689) (“the 1978 GB regulations”), after regulation 5 insert—
In the Social Security (Categorisation of Earners) Regulations (Northern Ireland) 1978 (S.R. (NI) 1978 No. 401) (“the 1978 NI regulations”), after regulation 5 insert—
In section 2 of SSCBA 1992 (categories of earner), after subsection (2) insert—
In section 7 of SSCBA 1992 (“secondary contributor”), after subsection (2) insert—
In section 2 of SSCB(NI)A 1992 (categories of earner), after subsection (2) insert—
In section 7 of SSCB(NI)A 1992 (“secondary contributor”), after subsection (2) insert—
Subsections (1) and (2)—
are to be treated as having come into force on 6 April 2014 for the purposes of inserting regulation 5A(1) to (5), (6)(a) and (7), and
come into force for the purposes of inserting regulation 5A(6)(b) on the day on which this Act is passed.
Paragraphs (4) and (5) of regulation 5A have effect in relation to arrangements entered into on or after 6 April 2014 the main purpose, or one of the main purposes of which, is to secure that a person is not treated, under a provision mentioned in paragraph (6)(b) of that regulation, as the secondary Class 1 contributor in respect of payments of earnings to or for the benefit of an employed earner in respect of an employment.
But regulation 5A(5) only applies as a result of arrangements mentioned in subsection (8) in relation to payments of earnings that are made on or after the day on which this Act is passed.
In subsections (7) to (9) references to regulation 5A are to regulation 5A—
inserted by subsection (1) into the 1978 GB regulations;
inserted by subsection (2) into the 1978 NI regulations.
The amendments made by subsections (1) and (2) are without prejudice to any power to make regulations amending or revoking the provision inserted.
In section 165 of SSAA 1992 (adjustments between the National Insurance Fund and Consolidated Fund)—
in subsection (5)(a), for the words from “other” to “Act 2014” substitute “ relevant legislation ”;
after subsection (5A) insert—
In section 145 of SSA(NI)A 1992 (adjustments between the National Insurance Fund and Consolidated Fund)—
in subsection (5)(a), for the words from “other” to “Act 2014” substitute “ relevant legislation ”;
after subsection (5A) insert—
In this Act—
“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005;
“WRA 2007” means the Welfare Reform Act 2007;
Part 5 of FA 2014 (promoters of tax avoidance schemes) has effect with the following modifications.
In section 276 (limitation of defence of reasonable care), the reference in subsection (1) to a document of a kind listed in the Table in paragraph 1 of Schedule 24 to FA 2007 includes a document, relating to relevant contributions, in relation to which that Schedule applies (and, accordingly, the reference to that Schedule in subsection (2) of that section includes that Schedule as it so applies).
“FA”, followed by a year, means the Finance Act of that year;
“WRA 2012" means the Welfare Reform Act 2012.
“PA 2014” means the Pensions Act 2014;
“SSAA 1992" means the Social Security Administration Act 1992;
The Social Security Contributions (Transfer of Functions, etc) (Northern Ireland) Order 1999 is amended as follows.
In Article 7 (decisions by officers of HMRC), after paragraph (1) insert—
In Schedule 3 (transfer of other functions to the Treasury or Board), omit paragraph 13.
In Schedule 8 (further consequential amendments), omit paragraphs 1 and 5(7).
“SSAA 1992" means the Social Security Administration Act 1992;
This Act may be cited as the National Insurance Contributions Act 2015.
Subject to subsection (3), this Act extends to England and Wales, Scotland and Northern Ireland.
An amendment, repeal or revocation made by this Act has the same extent as the provision amended, repealed or revoked.
Section 2
SSCBA 1992 is amended as follows.
In section 1 (outline of contributory system), in subsection (2)(c), omit “weekly”.
For section 11 (liability for Class 2 contributions) substitute—
Section 12 (late paid Class 2 contributions) is amended as follows. In subsection (1), after “Class 2 contribution” insert “ under section 11(6) ”. In subsection (2), for “to (5)” substitute “ and (4) ”. In subsection (3), for “(4) to (6)” substitute “ (4) and (6) ”. Omit subsection (5). In subsection (6)— Omit subsection (7). In subsection (8)—
In section 18 (Class 4 contributions recoverable under regulations), in subsection (1)(b), for “subsection (3)” substitute “ subsection (8) ”.
In section 35A (appropriate weekly rate of maternity allowance under section 35), in subsection (5)(c)—
in sub-paragraph (i), after “she” insert “ has ”;
in sub-paragraph (ii), for “was excepted (under section 11(4) above) from liability for” substitute “ could have paid, but has not paid, ”.
In section 35B (state maternity allowance for participating wife or civil partner of self-employed earner), in subsection (1)(c), for “is liable to pay” substitute “ has paid ”.
In section 176(1)(a) (parliamentary control: instruments subject to affirmative procedure), for “section 11(3)” substitute “ section 11(8) or (9) ”.
Schedule 1 (supplementary provisions) is amended as follows. In paragraph 7B, omit sub-paragraph (7). After paragraph 7BA insert— In paragraph 8(1), omit paragraphs (j) and (k).
“JA 1995" means the Jobseekers Act 1995;
SSCB(NI)A 1992 is amended as follows.
The amendments made by this Schedule, other than those mentioned in paragraph 36, have effect for the tax year 2015-16 and subsequent tax years.
In section 1 (outline of contributory system), in subsection (2)(c), omit “weekly”.
The amendments made by paragraphs 4, 9(2), 13, 18(2), 27 and 31 have effect in relation to a Class 2 contribution in respect of a week in the tax year 2015-16 or a subsequent tax year.
For section 11 (liability for Class 2 contributions) substitute—
The Treasury may by regulations made by statutory instrument make transitional or transitory provision or savings in connection with the coming into force of any of the amendments made by this Schedule.
Section 12 (late paid Class 2 contributions) is amended as follows. In subsection (1), after “Class 2 contribution” insert “ under section 11(6) ”. In subsection (2), for “to (5)” substitute “ and (4) ”. In subsection (3), for “(4) to (6)” substitute “ (4) and (6) ”. Omit subsection (5). In subsection (6)— Omit subsection (7). In subsection (8)—
In section 18 (Class 4 contributions recoverable under regulations), in subsection (1)(b), for “subsection (3)” substitute “ subsection (8) ”.
In section 35A (appropriate weekly rate of maternity allowance under section 35), in subsection (5)(c)—
in sub-paragraph (i), after “she” insert “ has ”;
in sub-paragraph (ii), for “was excepted (under section 11(4) above) from liability for” substitute “ could have paid, but has not paid, ”.
In section 35B (state maternity allowance for participating wife or civil partner of self-employed earner), in subsection (1)(c), for “is liable to pay” substitute “ has paid ”.
In section 172(11A) (instruments subject to Parliamentary affirmative procedure), for “11(3)” substitute “ 11(8) or (9) ”.
Schedule 1 (supplementary provisions) is amended as follows. In paragraph 7B, omit sub-paragraph (7). After paragraph 7BA insert— In paragraph 8(1), omit paragraphs (j) and (k).
SSAA 1992 is amended as follows.
For the purposes of section 204 (circumstances in which a follower notice may be given), Condition B is also met if, in a relevant contributions dispute, a person disputes liability for relevant contributions on the basis mentioned in subsection (3) of that section (regardless of whether the notification of dispute was given on that basis).
For the purposes of section 219 (circumstances in which an accelerated payment notice may be given), Condition B is also met if, in a relevant contributions dispute, a person disputes liability for relevant contributions on the basis mentioned in subsection (3) of that section (regardless of whether the notification of dispute was given on that basis).
Subsection (7) of section 226 (penalty for failure to pay accelerated payment) applies in relation to a penalty under that section imposed by virtue of this Part of this Schedule, but the reference in that subsection to tax does not include relevant contributions. But in their application by virtue of sub-paragraph (1), the provisions of Schedule 56 to FA 2009 mentioned in that subsection have effect—
In this Part of this Schedule— and references to sections are to sections of FA 2014, unless otherwise indicated.
“accelerated payment notice” means an accelerated payment notice under Chapter 3 of Part 4 of FA 2014;
“contributory benefit” means—
a contributory benefit under Part 2 of SSCBA 1992,
a jobseeker’s allowance under JA 1995,
an employment and support allowance under Part 1 of WRA 2007,
any corresponding benefit in Northern Ireland;
“HMRC” means Her Majesty’s Revenue and Customs;
Class 1 contributions;
In section 141 (annual review of contributions), in subsection (4)—
in paragraph (a), for “section 11(1)” substitute “ section 11(2) and (6) ”;
in paragraph (b), for the words from “amount” to the end substitute “ small profits threshold for the purposes of Class 2 contributions ”.
Section 143 (power to alter contributions with a view to adjusting the level of the National Insurance Fund) is amended as follows. In subsection (1)(c), for “section 11(1)” substitute “ section 11(2) and (6) ”. In subsection (3)—
In section 145 (power to alter primary and secondary contributions), in subsection (4)(a)—
for “section 11(1)” substitute “ section 11(2) and (6) ”;
omit “in that subsection”.
SSC(TF)A 1999 is amended as follows.
In section 4 (recovery of contributions where income tax recovery provisions not applicable)—
in paragraph (a), for “, Class 1B and Class 2” substitute “ and Class 1B ”;
after paragraph (a) insert—.
In section 8 (decisions by officers of HMRC), after subsection (1) insert—
In Schedule 3 (transfer of other functions to the Treasury or Board), omit paragraph 12.
In Schedule 9 (further consequential amendments), omit paragraphs 3 and 7(7).
The Social Security (Contributions) Regulations 2001 are amended as follows.
Part 4 of FA 2014 (follower notices and accelerated payments) has effect with the following modifications.
This paragraph applies in a case in which, by virtue of this Part of this Schedule, a follower notice is given by virtue of section 204(2)(a). For the purposes of section 208 (penalty if corrective action not taken in response to follower notice), the necessary corrective action is taken in respect of the denied advantage if (and only if)— Accordingly— Terms used in this paragraph that are defined for the purposes of section 208 have the same meaning as in that section.
This paragraph applies in relation to an accelerated payment (see section 223(2)) so far as (but only so far as) it represents understated tax (see section 220) that consists of an additional amount that would be due and payable in respect of relevant contributions (“the understated contributions”). The accelerated payment is a payment of the understated contributions (and not a payment on account of them). Accordingly, subsections (3) and (7) to (9) of section 223 do not apply in relation to the accelerated payment. The accelerated payment must be paid before the end of the payment period regardless of whether P brings a NICs appeal that relates to the understated contributions. Section 117A of SSAA 1992 and section 111A of SSA(NI)A 1992 (issues arising in proceedings: contributions etc) do not apply to proceedings for the recovery of any amount of the accelerated payment that is unpaid at the end of the payment period. A certificate of an officer of Revenue and Customs under section 25A of CRCA 2005 (certificates of debt) that the accelerated payment has not been paid is to be treated as conclusive evidence that the amount is unpaid. If some or all of the understated contributions are subsequently repaid to P— In sub-paragraph (7) “benefit” means a contributory benefit or a statutory payment. Terms used in this paragraph that are defined for the purposes of section 223 have the same meaning as in that section.
A penalty under section 208 or 226 imposed by virtue of this Part of this Schedule may be recovered as if it were an amount of relevant contributions which is due and payable. Section 117A of SSAA 1992 or (as the case may be) section 111A of SSA(NI)A 1992 (issues arising in proceedings: contributions etc) has effect in relation to proceedings before a court for recovery of the penalty as if the assessment of the penalty were a NICs decision as to whether the person is liable for the penalty. Accordingly, section 211(4)(b) (assessment of penalty to be enforced as if it were an assessment to tax) does not apply in relation to a penalty under section 208 imposed by virtue of this Part of this Schedule.
In regulation 125 (share fishermen), in paragraph (c), for “section 11(1) of the Act (Class 2 contributions), be £3.40” substitute “section 11(2) and (6) of the Act (Class 2 contributions), be £3.45”. The amendment made by sub-paragraph (1) is without prejudice to any power to make regulations amending or revoking the provision amended.
In regulation 127 (elections by married women and widows), in paragraph (3)(b), after “Class 2 contribution” insert “, nor shall she be entitled to pay any such contribution,”. The amendment made by sub-paragraph (1) is without prejudice to any power to make regulations amending or revoking the provision inserted.
Section 4
“PA 2014” means the Pensions Act 2014;
References to tax or a relevant tax, other than references to particular taxes, include relevant contributions.
References to a charge to tax include a liability to pay relevant contributions and references to a person being chargeable to tax, or to tax being charged, are to be construed accordingly.
References to an assessment to tax include a NICs decision relating to a person’s liability for relevant contributions.
References to a tax enquiry include a relevant contributions dispute.
A “relevant contributions dispute” arises if—
without making a NICs decision, HMRC notifies a person in writing that HMRC considers the person to be liable to pay an amount of relevant contributions, and
the person notifies HMRC in writing (a “notification of dispute”) that the person disputes liability for some or all of the contributions (“the disputed contributions”).
The relevant contributions dispute is in progress, in relation to the notification of dispute, during the period which—
begins with the day on which the person gives the notification of dispute, and
ends (at which point it is to be treated as completed) with the day on which—
the disputed contributions are paid in full,
HMRC and the person enter into an agreement in writing as to the person’s liability for the disputed contributions and any amount of those contributions that the person is to pay under that agreement is paid,
an officer of Revenue and Customs makes a NICs decision in relation to the person’s liability for the disputed contributions, or
without making a NICs decision, HMRC notifies the person in writing that HMRC no longer considers the person to be liable to pay the disputed contributions.
References to a return into which a tax enquiry is in progress include a notification of dispute in relation to which a relevant contributions dispute is in progress.
References to a tax appeal include a NICs appeal.
A “NICs appeal” means—
an appeal, under section 11 of SSC(TF)A 1999 or Article 10 of the Social Security Contributions (Transfer of Functions, etc) (Northern Ireland) Order 1999 (S.I. 1999/671), against a NICs decision relating to relevant contributions, or
an appeal against any determination of—
an appeal within paragraph (a), or
an appeal within this paragraph.
A reference to a provision of Part 7 of FA 2004 (disclosure of tax avoidance schemes) (a “DOTAS provision”) includes a reference to— whenever the regulations are made. Regulations under section 132A of SSAA 1992 may disapply, or modify the effect of, sub-paragraph (1).
The definition of “relevant tax” in section 200 (“relevant tax”) has effect as if relevant contributions were listed in it.
In section 212 (aggregate penalties), references to a “relevant penalty provision” include— The Treasury may by regulations disapply, or modify the effect of, sub-paragraph (1)(a) or (b). The Treasury may by regulations modify section 212 as it has effect in relation to a relevant penalty provision by virtue of sub-paragraph (1)(b) or (c). Section 175(3) to (5) of SSCBA 1992 (various supplementary powers) applies to a power to make regulations conferred by this paragraph. Regulations under this paragraph must be made by statutory instrument. A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of either House of Parliament.
This paragraph applies where— P must pay the disputed contributions (see sub-paragraph (8))— Subsections (4) and (5) of section 117A of SSAA 1992 or (as the case may be) of section 111A of SSA(NI)A 1992 (decision of officer of HMRC not conclusive if subject to appeal and proceedings for recovery to be adjourned pending appeal) do not apply to proceedings before a court for recovery of the disputed contributions. Accordingly, if proceedings have been adjourned under subsection (5) of either of those sections, they cease to be adjourned, so far as they relate to the recovery of the disputed contributions, from the end of the applicable period under sub-paragraph (2). A certificate of an officer of Revenue and Customs under section 25A of CRCA 2005 (certificates of debt) that the disputed contributions have not been paid is to be treated as conclusive evidence that the disputed contributions are unpaid. If some or all of the disputed contributions are subsequently repaid to P— In sub-paragraph (6) “benefit” means a contributory benefit or a statutory payment. In this paragraph “the disputed contributions” means the relevant contributions to which the NICs appeal relates so far as they are disputed tax specified in the notice under section 221(2)(b).
In section 227 (withdrawal, modification or suspension of accelerated payment notice), subsection (9) has effect as if the provisions mentioned there included paragraph 18(2) of this Schedule.
In section 255 (power to obtain information and documents), references to a person’s tax position include the person’s position as regards deductions or repayments of relevant contributions, or of sums representing relevant contributions, that the person is required to make by or under an enactment.
In this Part of this Schedule—
“relevant contributions” means the following contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992—
Class 1 contributions;
Class 1A contributions;
Class 1B contributions;
Class 2 contributions which must be paid but in relation to which section 11A of the Act in question (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2) of that Act) does not apply;
references to sections are to sections of FA 2014, unless otherwise indicated.
References to tax, other than in references to particular taxes, include relevant contributions.
References to a tax advantage include the avoidance or reduction of a liability to pay relevant contributions.
A reference to a provision of Part 7 of FA 2004 (disclosure of tax avoidance schemes) (a “DOTAS provision”) includes a reference to— whenever the regulations are made. Regulations under section 132A of SSAA 1992 may disapply, or modify the effect of, sub-paragraph (1).
“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005;
In section 253 (duty of persons to notify the Commissioners), references to a tax return include a return relating to relevant contributions that is required to be made by or under an enactment.
The definition of “tax” in section 283(1) (interpretation) has effect as if relevant contributions were listed in it.
In section 16 of SSCBA 1992 (application of Income Tax Acts and destination of Class 4 contributions), in subsection (1), at the end of paragraph (c) insert and.
Parts 1 and 3 of this Schedule come into force at the end of the period of 2 months beginning with the day on which this Act is passed. Part 2 of this Schedule comes into force—
Before the coming into force of the repeals in section 4C of SSCBA 1992 made by Part 1 of Schedule 14 to >WRA 2012 (abolition of benefits superseded by universal credit), the reference in paragraph 22 to a jobseeker’s allowance is to be treated as a reference to a contribution-based jobseeker’s allowance (within the meaning of JA 1995).
Before the coming into force of the repeal of section 22(8) of SSCBA 1992 made by Part 1 of Schedule 14 to >WRA 2012 (abolition of benefits superseded by universal credit), the reference in paragraph 22 to an employment and support allowance is to be treated as a reference to a contributory allowance (within the meaning of Part 1 of WRA 2007).