Explanatory note

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.