SOCIAL SECURITY Citation, commencement and interpretation 1 1 These Regulations may be cited as the Social Security (Contributions) (Amendment No. 5) Regulations (Northern Ireland) 1996 and shall come into operation on 6th April 1997. 2 In these Regulations “the principal Regulations ” means the Social Security (Contributions) Regulations (Northern Ireland) 1979 . Amendment of regulation 1 of the principal Regulations 2 In regulation 1(2) of the principal Regulations (interpretation)— a after the definition of “company” there shall be inserted the following definition— “COMPS employment” means employment in respect of which minimum payments are made to a money purchase pension scheme contracted out under section 5(3) of the Pension Schemes (Northern Ireland) Act 1993 (requirements for certification of schemes); ; b after the definition of “contributory benefit” there shall be inserted the following definitions— “COSRS employment” means employment which qualifies an earner for a pension provided by a salary related scheme contracted out under section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 ; “director” means— in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body; in relation to a company whose affairs are managed by a single director or similar person, that director or person; any person in accordance with whose directions or instructions the company’s directors as defined in paragraphs ( a ) and ( b ) of this definition are accustomed to act; and for this purpose a person is not to be treated as such a person by reason only that the directors act on advice given by him in his professional capacity; . Amendment of regulation 5A of the principal Regulations 3 In regulation 5A(2) of the principal Regulations (earnings period for earnings to be aggregated where the earnings periods for those earnings otherwise would be of different lengths) for sub-paragraph ( b ) there shall be substituted the following sub-paragraphs— b where the earnings are derived from employments which include any contracted-out employment and any non-contracted-out employment and the employed earner is not a person in respect of whom minimum contributions are paid by the Department in accordance with section 39 of the Pension Schemes (Northern Ireland) Act 1993 , and i any of the contracted-out employments is COMPS employment, the earnings period in respect of the earnings derived from that COMPS employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments; ii the contracted-out employment is COSRS employment only, the earnings period in respect of the earnings derived from that COSRS employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments; or bb where the earnings are derived from employments which are contracted-out employments only, and— i any of the employments is COMPS employment, the earnings period in respect of the earnings derived from that COMPS employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments; ii all of those employments are COSRS employment, the shorter, or as the case may be the shortest, of the earnings periods derived from such employments; and . Amendment of regulation 32 of the principal Regulations 4 1 Regulation 32 of the principal Regulations (return of contributions) shall be amended in accordance with paragraphs (2) and (3) of this regulation. 2 In paragraph (2) — a for “Article 3(9) of the 1986 Order” there shall be substituted “section 40(1) of the Pension Schemes (Northern Ireland) Act 1993 ”; b for sub-paragraph ( d ) there shall be substituted the following sub-paragraphs— d any amount of primary Class 1 contributions at the percentages applying under section 37(1) of the Pension Schemes (Northern Ireland) Act 1993 (reduced rates of Class 1 contributions) in respect of COSRS employment as specified in head (i), (ii) or (iii) of this sub-paragraph— i where the amount paid at the contracted-out percentage is equal to or exceeds 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage in excess of 53 times the amount, calculated at the initial primary percentage rate specified in section 8(2)( a ) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (calculation of primary Class 1 contributions), payable on earnings at the lower earnings limit for that year and the amount paid at the contracted-out percentage if any; ii where the amount paid at the contracted-out percentage is less than 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage; iii where no amount has been paid at the contracted-out percentage, the amount paid at the normal percentage; e any amount of primary Class 1 contributions at the percentages applying under section 38A of the Pension Schemes (Northern Ireland) Act 1993 (reduced rates of Class 1 contributions, and rebates) in respect of COMPS employment as specified in head (i), (ii) or (iii) of this sub-paragraph— i where the amount paid at the contracted-out percentage is equal to or exceeds 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage in excess of 53 times the amount, calculated at the initial primary percentage rate specified in section 8(2)( a ) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, payable on earnings at the lower earnings limit for that year and the amount paid at the contracted-out percentage if any; ii where the amount paid at the contracted-out percentage is less than 53 times the amount payable on earnings at the upper earnings limit for that year, the amount paid at the normal percentage; iii where no amount has been paid at the contracted-out percentage, the amount paid at the normal percentage. . 3 In paragraph (2A) — a for “Article 3(9)” there shall be substituted “section 40(1)”; b for “sub-paragraph ( d ) of that paragraph shall be returned before those specified in sub-paragraph ( c )” there shall be substituted “sub-paragraph ( c ) of that paragraph shall be returned after those specified in sub-paragraphs ( d ) and ( e )”. Amendment of regulation 35 of the principal Regulations 5 In regulation 35(1) of the principal Regulations (calculation of return of contributions) after sub-paragraph ( f ) there shall be added the following sub-paragraph— g in the case of such contributions paid in error in respect of any person, the amount of any payment made by the Department under section 38A(3) of the Pension Schemes (Northern Ireland) Act 1993 (reduced rates of Class 1 contributions, and rebates: age-related rebates). . Amendment of regulation 68 of the principal Regulations 6 In regulation 68(2) of the principal Regulations (repayment of Class 4 contributions which are not due) for sub-paragraph ( b ) there shall be substituted the following sub-paragraph— b the said application is made within a period of— i 6 years beginning with 6th April in the year of assessment next following that in respect of which the payment was made where the application is in respect of any year of assessment ending before 6th April 1996, ii 5 years beginning with 1st February in the year of assessment next following that in respect of which the payment was made where the application is in respect of any year of assessment beginning on or after 6th April 1996, or iii if later than head (i) or (ii) of this sub-paragraph, 2 years beginning with 6th April in the year of assessment next following that in which the payment was made. . Amendment of Schedule 1 to the principal Regulations 7 1 Schedule 1 to the principal Regulations (application of Income Tax (Employments) Regulations 1973 to earnings-related contributions and Class 1A contributions) shall be amended in accordance with paragraphs (2) to (4) of this regulation. 2 In Regulation 13A (recording of Class 1A contributions) for “75 days” there shall be substituted “105 days”. 3 In Regulation 26C (payment of Class 1A contributions)— a in paragraph (1)— i “the provisions of paragraph (2) of this Regulation and to” shall be omitted, ii for “19th June” there shall be substituted “19th July”; b paragraph (2) shall be omitted. 4 In— a Regulation 27(2A) and (3)( b ) (employer failing to pay earnings-related contributions or Class 1A contributions); b Regulation 27B(1), (2)( a ), (3) and (5) (specified amount of Class 1A contributions); c Regulation 28(1)( b ) (recovery of earnings-related contributions or Class 1A contributions); d Regulation 32(5) (inspection of employer’s records), “or (2)” shall be omitted. Sealed with the Official Seal of the Department of Health and Social Services for Northern Ireland on 17th September 1996. John O'Neill Assistant Secretary The Commissioners of Inland Revenue hereby concur S. C. T. Matheson C. W. Corlett Two of the Commissioners of Inland Revenue 18th September 1996.