Social Welfare (Transitional Arrangements) (Alignment of Income Tax Year With Calendar Year) Regulations, 2001
Statutory Instruments
Source: Statutory Instruments

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paragraphs: This Order may be cited as the Social Welfare (Transitional Arrangements) (Alignment of Income Tax Year with Calendar Year) Regulations, 2001.
Commencement.
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paragraphs: These Regulations come into operation on 1 January 2002.
Definitions.
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paragraphs: (1) In these Regulations-
“2001 contribution year” means the contribution year beginning on 6 April, 2001 and ending on 31 December, 2001;
“benefit” means any benefit described in section 30 of the Principal Act;
“the Principal Act” means the Social Welfare (Consolidation) Act, 1993 ;
“the Regulations of 1994” means the Social Welfare (Consolidated Payments Provisions) Regulations, 1994 ( S.I. No. 417 of 1994 );
“the Regulations of 1996” means the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 ( S.I. No. 312 of 1996 ).
(2) In these Regulations, save where the context otherwise requires, a reference to a section is to a section of the Principal Act.
Additional contributions.
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paragraphs: (1) Subject to sub-article (3), for the purpose of any right to benefit, in the case of an insured person who has paid at least one employment contribution (other than an employment contribution paid in accordance with article 88 of the Regulations of 1996), optional contribution or voluntary contribution in respect of the 2001 contribution year, 14 additional employment, optional or voluntary contributions shall be treated as paid in respect of him or her in respect of that contribution year in accordance with sub-article (2).
(2) (a) The contributions to be treated as paid under sub-article (1) shall be -
(i) employment contributions, in any case where a person has paid at least one employment contribution in the 2001 contribution year,
(ii) optional contributions, in any case where a person has paid at least one optional contribution in the 2001 contribution year but has not paid an employment contribution in that contribution year, or
(iii) voluntary contributions, in any case where a person has paid at least one voluntary contribution in the 2001 contribution year but has not paid an optional or an employment contribution in that contribution year.
(b) In any case where an insured person has paid more than one employment contribution, the 14 additional employment contributions shall be treated as paid at a rate equal to the highest rate of employment contribution paid by the insured person.
(3) (a) A contribution treated as paid in accordance with this article, which if paid by the insured person would be a qualifying contribution within the meaning of the Principal Act for the purpose of satisfying any of the contribution conditions for entitlement to benefit specified in paragraph (b), shall be treated as a qualifying contribution, as appropriate, for those purposes and for no other purpose.
(b) The contribution conditions specified for the purposes of paragraph (a) are the contributions conditions set out in -
(i) sections 32(1) (b), 38(a) (i) (B), 41B(1) (a) (ii) (B), 41H(1) (a) (i) (B), 43(1) (b), 82C(1) (a), 82C(1) (c), 84(1) (c), 89(1) (c), 96(1) (b), 102(1) (b) and 115(1) (b) (i), 115(1) (b) (ii), 115(1) (b) (iii) and 115(1) (b) (iv) or
(ii) articles 19(a), 40(1), 49(1), 67D(1) (b) (ii), 67D(1) (c) (ii), 67D(2) and 67E(b) of the Regulations of 1994.
Additional credited contributions.
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paragraphs: (1) Subject to sub-article (2), for the purpose of any right to benefit, in the case of an insured person who is not awarded additional contributions in accordance with article 4 of these Regulations, and who, other than in accordance with this article, has been credited with at least one employment contribution in respect of the 2001 contribution year, 14 additional employment contributions shall be credited in respect of that person in respect of that year.
(2) Employment contributions credited under sub-article (1) shall be reckonable only for the those purposes for which the employment contribution referred to in sub-article (1) which was credited other than in accordance with this article, are reckonable.
Transitional provisions - Regulations of 1994.
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paragraphs: (1) For the purposes of determining entitlement to disability benefit under Chapter 1 or unemployment benefit under Chapter 3 of Part II of the Regulations of 1994, in respect of the benefit year commencing on 7 January, 2002 and ending on 5 January, 2003, the definition of “governing contribution year” contained in article 3 of the Regulations of 1994 shall be construed as if the words “second last complete contribution year” were substituted for the words “last complete contribution year”.
(2) For the purpose of determining the rate of maternity benefit payable under section 39(1) and adoptive benefit payable under section 41I (1), in respect of the benefit year commencing on 7 January, 2002 and ending on 5 January, 2003, articles 22(1) and 25E shall be construed as if the words “second last complete income tax year” were substituted for the words “last complete income tax year”.
(3) For the purposes of determining whether the contribution condition contained at section 41B (1) (b) for receipt of health and safety benefit is satisfied in respect of the benefit year commencing on 7 January, 2002 and ending on 5 January, 2003, article 25A (1) (a) of the Regulations of 1994 (inserted by article 7 of the Social Welfare (Consolidated Payments Provisions) (Amendment) Regulations, 1995 ( S.I. No. 26 of 1995 )) shall be construed as if the words “second last complete contribution year” were substituted for the words “last complete contribution year”.
(4) For the purposes of determining entitlement to treatment benefit under Chapter 9 of Part II of the Regulations of 1994 in respect of the benefit year commencing on 7 January, 2002 and ending on 5 January, 2003, the definition of “relevant contribution year” contained in article 67A of the Regulations of 1994, shall be construed as if the words “second last complete contribution year” were substituted for the words “last complete contribution year” and the words “either the second last or the third last complete contribution year” were subsituted for the words “either of the last two complete contributions years”.
Amendment of Regulations of 1996
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paragraphs: The Regulations of 1996 are amended by -
(a) the substitution in article 3 for the definition of “income tax month” of the following definition:
‘“income tax month” means a month beginning on the 1st day of any of the months of January to December in any contribution year and ending on the last day of that month;’, and
(b) the substitution in article 72A (2) (inserted by article 3 of the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 3) (Refunds) Regulations, 1999, ( S.I. No. 176 of 1999 )) for the words “5th day of April, 2004” of the words “31st day of December 2003”.
Transitional provisions - Regulations of 1996.
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paragraphs: (1) In the application of article 92 of the Regulations of 1996 in respect of the contribution year beginning on 6 April, 2001 and ending on 31 December, 2001 the amount “ £1,850” shall be substituted for the amount “ £2,500”.
(2) Chapter II of Part III of the Regulations of 1996 shall not apply to contributions treated as paid in accordance with these Regulations.
Transitional provisions -
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paragraphs: For the purposes of regarding contributions as being paid in accordance with section 18(1) (e) in respect of the 2001 contribution year, section 18 (1) (e) shall be construed as if the words “he shall be regarded as having paid 52 contributions in that contribution year” were substituted for the words “he shall be regarded as having paid contributions for each contribution week in that contribution year”.
GIVEN under the Official Seal of the Minister for Social, Community and Family Affairs, this 10th day of December, 2001.
DERMOT AHERN
Minister for Social, Community and Family Affairs.
The Minister for Finance hereby consents to the making of the foregoing Regulations.
GIVEN under the Official Seal of the Minister for Finance this 20th day of December, 2001
CHARLIE MC CREEVY
Minister for Finance.
EXPLANATORY NOTE
(This note is not part of the Instrument and does not purport to be a legal interpretation.
With effect from 1st January, 2002 the Income Tax year and the calendar year will be aligned and consequently, the period 6 April, 2001 to 31 December, 2001 will comprise a ‘short’ tax year. These Regulations contain the transitional arrangements necessary to preserve entitlement to social insurance-based benefits, to ensure that people are not adversely affected by the 39 week Income Tax Year.
The Regulation contains the following provisions:
Article 4(1) provides that fourteen (14) additional employment, optional or voluntary social insurance contributions will be awarded in the ‘short’ transitional tax year, 6 April to 31 December, 2001. Article 4(2) (b) provides that where a person has paid more than one class of employment contribution, the 14 additional contributions will be awarded at the highest rate.
Article 4(3) specifies the manner in which these additional contributions will be reckonable for the purpose of qualifying for social insurance benefits. They will be reckonable as qualifying contributions -
* for all contribution conditions requiring a certain number of contributions paid or credited in a Governing Contribution Year,
* where a minimum number of paid contributions is required in the Governing Contribution Year, and
* for the purposes of the yearly average tests used for pensions.
Article 5 provides for the award of fourteen (14) additional credited contributions where a person is not awarded any additional contributions, in accordance with Article 4, and has at least one credited contribution in the relevant period.
Article 6 contains amendments to the Social Welfare (Consolidated Payments Provisions) Regulations, 1994 (S.I. No. 417/94). Article 6(1) provides that in the Benefit year 2002 (i.e. the period 7th January 2002 to 5th January 2003), for the purposes of qualifying for Disability Benefit and Unemployment Benefit, the appropriate Governing Contribution Year will be the contribution year commencing on 6th April 2000 and ending 5th April 2001.
Maternity and Adoptive Benefit payment rates are determined on the basis of a woman's reckonable earnings in the last complete income tax year before the beginning of the Benefit Year in which the claim is made. Article 6 (2) provides that in the 2002 Benefit Year the Income Tax Year 6th April 2000 to 5th April 2001 will be applicable.
Article 6(3) provides that, for the purposes of determining entitlement to Health and Safety Benefit in the Benefit Year 2002, the appropriate Governing Contribution Year will be 6th April 2000 to 5th April 2001. Article 6 (4) provides that, for the purposes of determining entitlement to Treatment Benefit in the Benefit Year 2002, the appropriate Relevant Contribution Year will be April 2000 to April 2001.
Article 7 provides for the amendment of the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 ( S.I. No. 312 of 1996 ). Article 7 (1) (a) contains a necessary amendment to the definition of “income tax month” which is defined in relation to time limits for remittance of social insurance contributions. Article 7(1) (b) amends a date in relation to refund of PRSI contributions in respect of Seafarers from 5th April 2004 to 31st December 2003.
Article 7 (2) provides that the additional insurance contributions awarded in accordance with these Regulations are excluded from the provisions governing refund of contributions.
Article 8 provides that the minimum amount below which self-employment contributions are payable will be 74% of the normal annual rate in the ‘short’ transitional Income Tax Year.
Article 9 amends the Social Welfare (Consolidation) Act to provide that, in the ‘short’ Income Tax Year, 52 contributions will be recorded in respect of all self-employed people who discharge their liability.