Citation, commencement and effect

1.-(1) These Regulations may be cited as the Social Security (Contributions) (Amendment) Regulations 2012 and come into force on 26th March 2012.

(2) The amendments made by regulation 2 shall have effect in relation to contributions paid in respect of the tax year 2011-12 and subsequent tax years.

Amendment of the Social Security (Contributions) Regulations 2001

2.-(1) The Social Security (Contributions) Regulations 2001(3) are amended as follows.

(2) In regulation 21 (annual maxima for those with more than one employment)-

(a)in paragraph (2)-

(i)in Step Two for "11 per cent" substitute "12 per cent";

(ii)in Step Five for "1 per cent" substitute "2 per cent";

(iii)in Step Seven for "1 per cent" substitute "2 per cent"; and

(b)in paragraph (3) for "11 per cent" substitute "12 per cent".

(3) In regulation 100 (annual maxima of Class 4 contributions due under section 15 of the Social Security Contributions and Benefits Act)-

(a)in paragraph (3)-

(i)in Step Two for "8 per cent" substitute "9 per cent";

(ii)in Step Five for "" substitute "";

(iii)in Step Eight for "1 per cent" substitute "2 per cent";

(iv)in Step Nine for "1 per cent" substitute "2 per cent"; and

(b)in paragraph (4) for "11 per cent" substitute "12 per cent".

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Contributions) Regulations 2001 ("the principal Regulations") to reflect various recent changes to the rates in respect of National Insurance contributions ("NICs").

Regulations 21 and 100 of the principal Regulations provide, in the case of those with more than one employment, for the computation of annual maxima for Class 1 and Class 4 NICs respectively.

Regulation 2 ensures that the calculations of the annual maxima to be made after the 2011-12 tax year has ended, and after the end of subsequent tax years, in respect of contributions paid for the relevant tax year takes account of changes to the rates of NICs made by the National Insurance Contributions Act 2011 (c.3). That Act included provision to increase from 6th April 2011 the main rates of primary Class 1 and Class 4 NICs from 11% to 12% and from 8% to 9% respectively and the additional rates of primary Class 1 and Class 4 NICs from 1% to 2%.

A Tax Information and Impact Note covering this instrument has been published and is available on the HMRC website at http://www.hmrc.gov.uk/the library/tiins.htm.