Paragraph 14

Where an earner’s earnings paid in any period before the tax year 1987-88—

it shall be assumed for the purposes of sections 58(4) and 61(2) that his earnings paid in that period were such that, taking the rate specified in Bracket 3 as the appropriate rate, the same amount of primary Class 1 contributions fell to be paid in respect of them as in fact fell to be paid in respect of them; and in this paragraph “Bracket 3” has the meaning given in section 9(3) of the M1Social Security Contributions and Benefits Act 1992.

Section 63(3) applies for the purposes of sub-paragraph (1), in so far as it applies as respects section 58(4), as if the reference in paragraph (b) of section 63(3) to earnings included a reference to earnings relevant for any purpose of that sub-paragraph.

Where the F1Inland Revenue have acted in pursuance of section 63(3) as applied by sub-paragraph (2) and F2they subsequently ascertain the amount of those earnings—