Section 18 Class 4 contributions recoverable under regulations.

England, Wales and Scotland

C1(1)

F1The Inland Revenue may by regulations make provision so that where—

(a)

an earner, in respect of any one or more employments of his, is treated by regulations under section 2(2)(b) above as being self-employed; and

(b)

in any tax year he has earnings from any such employment (one or more) which fall within paragraph (b)(i) of F2subsection (8) of section 11 above but is not liable for a higher weekly rate of Class 2 contributions by virtue of regulations under that subsection; and

(c)

the total of those earnings exceeds F3£12,570,

he is to be liable, in respect of those earnings, to pay a Class 4 contribution F4....

F5(1A)

The amount of a Class 4 contribution payable by virtue of regulations under this section is equal to the aggregate of—

(a)

the main Class 4 percentage of so much of the total of the earnings referred to in subsection (1)(b) above as exceeds F6£12,570 but does not exceed F7£50,270; and

(b)

the additional Class 4 percentage of so much of that total as exceeds £50,270;

but the figures specified in this subsection are subject to alteration under section 141 of the Administration Act.

(2)

F8In relation to Class 4 contributions payable by virtue of regulations under this section, F9regulations made by the Inland Revenue may—

(a)

apply any of the provisions of Schedule 1 to this Act (except a provision conferring power to make regulations); and

(b)

make any such provision as may be made by regulations under that Schedule, except paragraph 6 F10or 7BZA.

Annotations

Textual amendments

F1: Words in s. 18(1) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 18(2); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F2: Words in s. 18(1)(b) substituted (with effect for the tax year 2015-16 and subsequent tax years) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 paras. 5, 36
F3: Sum in s. 18(1)(c) substituted (6.4.2023) by National Insurance Contributions (Increase of Thresholds) Act 2022 (c. 16), s. 2(3)(4)
F4: Words in s. 18(1) repealed (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2
F5: S. 18(1A) inserted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 3(3), 8(2)
F6: Sum in s. 18(1A)(a) substituted (6.4.2023) by National Insurance Contributions (Increase of Thresholds) Act 2022 (c. 16), s. 2(3)(4)
F7: Sum in s. 18(1A) substituted (6.4.2021) by The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2021 (S.I. 2021/157), regs. 1, 5(2)
F8: Words in s. 18(2) substituted (25.2.1999 for specified purposes, 1.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(2)(a), Sch. 1 para. 7; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F9: Words in s. 18(2) substituted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 18(3); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F10: Words in s. 18(2)(b) inserted (1.9.2004) by National Insurance Contributions and Statutory Payments Act 2004 (c. 3), s. 13, Sch. 1 para. 1(3); S.I. 2004/1943, art. 5(a)(i)

Modifications

C1: S. 18(1): power to amend conferred (1.7.1992) by Social Security Administration Act 1992 (c. 5), ss. 141(5), 192(4)

Notes on Part I

Modifications

C1: Pt. 1 modified (2.4.1999) by The New Deal (25 plus) (Miscellaneous Provisions) Order 1999 (S.I. 1999/779), arts. 1(1), 2
C2: Pt. 1 modified (6.4.2001) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), regs. 1(1), 125 (as amended (6.4.2017) by S.I. 2017/416, regs. 1(2), 2; (6.4.2019) by S.I. 2019/555, regs. 1(2), 2)
C3: Pt. 1 modified (13.9.2001) by The New Deal (Lone Parents) (Miscellaneous Provisions) Order 2001 (S.I. 2001/2915), arts. 1(1), 2
C4: Pt. 1 modified (for the tax year 2022-23) by Health and Social Care Levy Act 2021 (c. 28), s. 5(2) (with s. 7(2)) (which Act was repealed (25.10.2022) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), s. 1 (with savings and transitional modifications of Pt. 1 in s. 2, Sch. paras. 1-3, 5))
C5: Pt. 1 modified (in relation to the tax year 2023-24) by National Insurance Contributions (Reduction in Rates) Act 2023 (c. 57), Sch. para. 1(1)-(3)