OpenLegislation

Section 142 Destination of contributions.C1

Northern Ireland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Contributions received by the F1Inland Revenue. . . shall be paid by them into the National Insurance Fund after deducting F2. . . the appropriate health service allocation . . . .

(2)

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

F3(2A)

F4The reference to contributions in subsection (1) above includes payments on account of contributions made in accordance with regulations under section 3(5) of the Contributions and Benefits Act (payments on account of directors’ contributions).

(3)

The additions paid under section 1(5) of the Contributions and Benefits Act shall be paid, in accordance with any directions given by the F5Treasury, into the National Insurance Fund.

F6(4)

There shall be paid into the National Insurance Fund—

(a)

so much of any interest recovered by the Inland Revenue by virtue of paragraph 6 of Schedule 1 to the Contributions and Benefits Act F7or section 101 of the Finance Act 2009 F8, or from persons in Northern Ireland by virtue of paragraph 6 of Schedule 2 to the Great Britain Contributions and Benefits Act (the text of which is set out as Schedule 2 to the Contributions and Benefits Act), as remains after the deduction by them of any administrative costs attributable to its recovery,

(b)

the amounts apportioned to F9contributions under sub-paragraph (6) of paragraph 7 of Schedule 1 to the Contributions and Benefits Act in respect of the penalties mentioned in that sub-paragraph, and

(c)

so much of any penalty otherwise imposed by virtue of that paragraph and recovered by the Inland Revenue as remains after the deduction by them of any administrative costs attributable to its recovery.

F10(F114ZA)

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

(4ZB)

F12Subsection (4)(b) and (c) above shall have effect notwithstanding any provision which treats a penalty under section 98 or 98A of the Taxes Management Act 1970 as if it were tax charged in an assessment and due and payable.

F13(4A)

The sums recovered by the F14Inland Revenue under regulations made under paragraph 7A F15, 7B or 7BZA of Schedule 1 to the Contributions and Benefits Act in respect of interest or penalties shall be paid into the National Insurance Fund.

C2(5)

In subsection (1) above “the appropriate health service allocation” means F16F1750 per cent of the product of the additional rate together with—

(a)

in the case of primary Class 1 contributions, F182.05 per cent. of the amount estimated to be that of F19so much of the earnings in respect of which those contributions were paid as exceeded F20the primary threshold but did not exceed the upper earnings limit;

(b)

in the case of secondary Class 1 contributions, F211.9 per cent. of the amount estimated to be that of the total earnings in respect of which F22primary Class 1 contributions were paid;

(c)

in the case of Class 1A contributions, 1.9 per cent. of the amount estimated to be the aggregate of the F23general earnings F24and the amounts chargeable to income tax under section 403 of the Income Tax (Earnings and Pensions) Act 2003 used in calculating those contributions;

F25(ca)

in the case of Class 1B contributions, 1.9 per cent. of the amount estimated to be the aggregate of the F26general earnings and the amounts of income tax in respect of which those contributions were paid;

(d)

in the case of Class 2 contributions, 15.5 per cent. of the amount estimated to be the total of those contributions;

(e)

in the case of Class 3 contributions, 15.5 per cent. of the amount estimated to be the total of those contributions;

F27(ea)

in the case of Class 3A contributions, 15.5 per cent of the amount estimated to be the total of those contributions; and

(f)

in the case of Class 4 contributions, F282.15 per cent of the amount estimated to be that of so much of the profits or gains, or earnings, in respect of which those contributions were paid as exceeded the lower limit specified in paragraph (a) of subsection (3) of section 15, and in paragraph (a) of subsection (1A) of section 18, of the Contributions and Benefits Act but did not exceed the upper limit specified in those subsections.

F29(5A)

In subsection (5) above “the product of the additional rate” means the amount estimated to be the aggregate of—

(a)

so much of the total of primary Class 1 contributions as is attributable to section 8(1)(b) of the Contributions and Benefits Act (additional primary percentage);

(b)

so much of the total of Class 4 contributions under section 15 of that Act as is attributable to subsection (3)(b) of that section (additional Class 4 percentage); and

(c)

so much of the total of Class 4 contributions payable by virtue of section 18 of that Act as is attributable to subsection (1A)(b) of that section (additional Class 4 percentage).

(6)

In F30subsections (5) and (5A) above “estimated” means estimated by the F31Inland Revenue in any manner which the Inland Revenue consider to be appropriate and which the Treasury has approved.

F32(6A)

In the case of earners paid other than weekly, the reference in subsection (5)(a) above to F33the primary threshold or the upper earnings limit shall be taken as a reference to the equivalent of that threshold or limit prescribed under section 5(4) of the Contributions and Benefits Act.

F34(7)

Whenever the Treasury makes an order under section 162(7) of the Great Britain Administration Act (destination of contributions — national health service allocation), the order may also make corresponding provision for Northern Ireland.

(8)

No order under subsection (7) above shall substitute a figure which represents an increase or decrease in the appropriate health service allocation of more than—

(a)

0.1 per cent. of the relevant earnings, in the case of paragraph (a) or (b);

(b)

0.1 per cent. of the relevant aggregate, in the case of paragraph (c) F35or (ca);

(c)

4 per cent. of the relevant contributions, in the case of paragraph (d) F36, (e) or (ea) ; or

(d)

0.2 per cent. of the relevant earnings, in the case of paragraph (f).

(9)

From the health service allocation in respect of contributions of any class there shall be deducted such amount as the F37Inland Revenue may estimate to be the portion of the total expenses incurred by F38them or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and the remainder shall be paid by the Inland Revenue to the relevant Northern Ireland Department towards the cost of the health service in Northern Ireland.

(10)

Any amounts deducted in accordance with subsection (9) above shall be paid by the F39Inland Revenue into the Consolidated Fund.

F40(11)

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

(12)

The Inland Revenue may make regulations modifying this section, in such manner as they think appropriate, in relation to the contributions of persons referred to in the following provisions of the Contributions and Benefits Act—

(a)

section 116(2) (H.M. Forces);

(b)

section 117(1) (mariners, airmen, etc.),

and in relation to any contributions which are reduced under section 6(5) of that Act.

Annotations

Textual amendments

F1

Words in s. 142(1) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(2) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F2

Words in s. 142(1), and s. 142(2) repealed (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 7, Sch. 2 (with effect for 2003-2004 and subsequent tax years)

F3

S. 142(2A) inserted (9.9.1998) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(1); S.R. 1998/312, art. 2(a), Sch. Pt. I

F4

Words in s. 142(2A) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 34(2) (with effect for 2003-2004 and subsequent tax years)

F5

Word in s. 142(3) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(4) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F6

S. 142(4) substituted (24.3.1999 for certain purposes, otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2), 3(1), Sch. 1 para. 31(2) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F7

Words in s. 142(4)(a) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments), Appointed Days and Consequential Provisions Order 2014 (S.I. 2014/992), arts. 1(1), 6

F8

Words in s. 142(4)(a) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 34(3) (with effect for 2003-2004 and subsequent tax years)

F9

Word in s. 142(4)(b) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(5) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F10

S. 142(4ZA) repealed (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 4(3)(a), Sch. 2; S.I. 2004/1943, art. 5(a)(iv)

F11

S. 142(4ZA)(4ZB) inserted (1.4.1999) by S.I. 1999/671, art. 5, Sch. 4 para. 11 (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F12

Words in s. 142(4ZB) substituted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 4(3)(b); S.I. 2004/1943, art. 5(a)(iv)

F13

S. 142(4A) inserted (6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(2); S.R. 1999/102, art. 2(d), Sch. Pt. III

F14

Words in s. 142(4A) substituted (24.3.1999 for certain purposes, otherwise 1.4.1999) by S.I. 1999/671, arts. 1(2), 3(1), Sch. 1 para. 31(3) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F15

Words in s. 142(4A) substituted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 4(3)(c); S.I. 2004/1943, art. 5(a)(iv)

F16

Words in s. 142(5) inserted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(a) (with effect for 2003-2004 and subsequent tax years)

F17

Word in s. 142(5) substituted (6.4.2011) by National Insurance Contributions Act 2011 (c. 3), ss. 3, 13(1)

F18

Words in s. 142(5)(a) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(b) (with effect for 2003-2004 and subsequent tax years)

F19

Words in s. 142(5)(a) substituted retrospective to 1.7.1992 by S.I. 1994/765 (N.I. 4), art. 4(1)(3)

F20

Words in s. 142(5) substituted (22.12.1999 for certain purposes, otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 9(2); S.I. 1999/3420, art. 2

F21

Words in s. 142(5)(b)(c)(ca) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(c) (with effect for 2003-2004 and subsequent tax years)

F22

Words in s. 142(5)(b) substituted (6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(3); S.R. 1999/72, art. 2(b), Sch.

F23

Words in s. 142(5)(c) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 206(a) (with Sch. 7)

F24

Words in s. 142(5)(c) inserted (6.4.2020 except in relation to termination awards received on or after 6.4.2020 in respect of employment which was terminated before 6.4.2020, or termination awards which are received in instalments where the first instalment of the termination award was received before 6.4.2020) by National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019 (c. 23), ss. 2(11), 5(3); S.I. 2020/285, reg. 2

F25

S. 142(5)(ca) inserted (9.9.1998 for certain purposes, otherwise 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 61(2); S.R. 1998/312, art. 2, Sch. Pt. II

F26

Words in s. 142(5)(ca) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 206(b) (with Sch. 7)

F27

S. 142(5)(ea) inserted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 22(2); S.I. 2015/1670, art. 2(b)

F28

Words in s. 142(5)(f) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(2)(d) (with effect for 2003-2004 and subsequent tax years)

F29

S. 142(5A) inserted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 5(3) (with effect for 2003-2004 and subsequent tax years)

F30

Words in s. 142(6) substituted (8.7.2002) by National Insurance Contributions Act 2002 (c. 19), s. 6, Sch. 1 para. 34(4) (with effect for 2003-2004 and subsequent tax years)

F31

Words in s. 142(6) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(7) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F32

S. 142(6A) inserted retrospective to 1.7.1992 by S.I. 1994/765 (N.I. 4), art 4(2)(3)

F33

Words in s. 142(6A) substituted (22.12.1999 for certain purposes, otherwise 6.4.2000) by 1999 c. 30, s. 74, Sch. 10 para. 9(3); S.I. 1999/3420, art. 2

F34

S. 142(7) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(8) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F35

Words in s. 142(8)(b) inserted (9.9.1998 for certain purposes, otherwise 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 77(4); S.R. 1998/312, art. 2, Sch. Pt. II

F36

Words in s. 142(8)(c) substituted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 22(3); S.I. 2015/1670, art. 2(b)

F37

Words in s. 142(9) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(9) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F38

Words in s. 142(12) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(12) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F39

Words in s. 142(10) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 45(10) (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

F40

S. 142(11) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 45(11), Sch. 9 Pt. I (subject to transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6 of the said S.R.)

Modifications

C1

S. 142 modified (for the tax year 2022-23) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), Sch. para. 7(2)(3) (with Sch. 8)

C2

S. 142(5) applied (temp.) (20.10.2021) by Health and Social Care Levy Act 2021 (c. 28), s. 5(6) (with s. 7(2))