51²è¹Ý

Section 8 of the Social Security Contributions and 51²è¹Ý Act 1992 (SSCBA 1992)

National Insurance Contributions Act 2002 (NICA 2002)

NIM01106 explains the changes to the structure of Class 1 NICs from 6 April 2003 provided by new section 8, Social Security Contributions and 51²è¹Ý Act 1992 (SSCBA) and introduced as part of the National Insurance Contributions Act 2002.

Section 8(3) SSCBA 92 provides that primary Class 1 NICs are subject to alteration for special cases. One of those special cases is married women and widows.

NIM30000 onwards provides detailed guidance on the liability for Class 1 NICs for certain married women and widows.

The National Insurance Contributions Act 2002 amended section 19(4)(a) of SSCBA 92 which provides for a reduced rate of Class 1 NICs to be paid by certain married women and widows. The amendment restricts the reduction available by providing for it to operate only on Class 1 contributions payable at the main primary percentage.

This means that those married women and widows with entitlement to pay reduced rate Class 1 NICs will pay:

• a reduced main primary percentage on so much of their earnings paid in a tax week in respect of their employment as
• exceeds the Primary Threshold (or the prescribed equivalent) but
• does not exceed the current Upper Earnings Limit (or the prescribed equivalent) and
• the additional primary percentage on so much of the earner’s earnings as exceeds the Upper Earnings Limit (or the prescribed equivalent)

For the tax year beginning 6 April 2003 to 5 April 2009:

• the main primary percentage for employees with a valid reduced rate election was 4.85% and
• the additional primary percentage was 1%

Note that the married women’s reduced rate can never apply to the additional primary percentage.