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Section 8 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Section 143 and 145 of the Social Security Administration Act 1992 (SSAA 1992)

NIM01102 explains the background to the Class 1 NICs calculation changes introduced from 6 April 2003.

Section 8 of SSCBA 92 provides for the calculation of primary Class 1 contributions and Section 1 of the National Insurance Contributions Act 2002 substituted a new section 8 with effect from 6 April 2003.

Section 8 now provides that where a primary Class 1 contribution is payable as mentioned in section 6(1)(a) SSCBA 92, see NIM02010 and NIM02015, the amount of the contribution is the aggregate of:

• the main primary percentage on so much of the earner’s earnings paid in a tax week in respect of the employment in question as

• exceeds the Primary Threshold (or the prescribed equivalent), see NIM01008, but

• does not exceed the current Upper Earnings Limit (or the prescribed equivalent), see NIM01009, and

• the additional primary percentage on so much of the earner’s earnings as exceeds the Upper Earnings Limit (or the prescribed equivalent)

Section 8 also provides that for the tax years 6 April 2003 to 5 April 2009:

• the main primary percentage was 11% and
• the additional primary percentage was 1%.

»Ê¹ÚÌåÓýapp main primary percentage remains subject to alteration under sections 143 and 145 of the Social Security Administration Act 1992. »Ê¹ÚÌåÓýappse sections allow alterations to be made to the primary and secondary Class 1 NICs percentages. »Ê¹ÚÌåÓýapp additional primary percentage rate cannot be altered without further primary legislation.

Similar changes were made to the Social Security Contributions and Benefits (Northern Ireland) Act 1992.