Regulation 21 Annual maxima for those with more than one employmentF1C1C2

For the purposes of section 19(1) and (2) of the Act (power to prescribe maximum amounts of contributions and repayments of excess) if an earner is employed in more than one employment his liability in any year—

shall not exceed an amount which equals the amount found in accordance with paragraph (2).

The amount is found as follows.

• Step One

  Calculate—

  $$53\times \left(\mathrm{UEL}-\mathrm{PT}\right)$$

  • Here UEL is the upper earnings limit, and PT the primary threshold, specified for the year.

• Step Two

  Multiply the result of Step One by F48% .

• Step Three

  Add together, in respect of all of the employed earner’s employments, so much of the earnings in each of those employments as exceeds the primary threshold and does not exceed the upper earnings limit.

• Step Four

  From the sum produced by Step Three subtract the amount found by the formula in Step One.

• Step Five

  If the result produced by Step Four is a positive value, multiply it by F52 per cent.

  If that result is nil or a negative value, it is treated for the purposes of Step Eight as nil.

• Step Six

  Add together, in respect of all of the employed earner’s employments, so much of the earnings in each of those employments as exceeds the upper earnings limit.

• Step Seven

  Multiply the sum produced by Step Six by F62 per cent.

• Step Eight

  Add together the amounts produced by Steps Two, Five and Seven.

  The result of Step Eight is the annual maximum, subject to the further qualifications in paragraphs (3) and (4).

F7For the purpose only of determining the extent of the earner’s liability for contributions under paragraph (2), the amount of a primary Class 1 contribution which is paid at a rate less than F8the rate specified as the main primary percentage because the earner is a married woman who has made an election to pay contributions at the reduced rate as mentioned in regulation 127, shall be treated as equal to the amount of the primary Class 1 contribution which would be payable if the election had not been made.

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Notwithstanding paragraphs (1) to (4), an earner shall be liable, in the first instance, for the full amount of the contributions which would have been payable but for this regulation.