Social Security PART 1 General Citation and commencement 1 These Regulations may be cited as the Social Security (Contributions) (Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2016 and come into force on 6th April 2016. PART 2 Limits and thresholds for National Insurance contributions Amendment of upper profits limit for Class 4 National Insurance contributions 2 In sections 15(3) and 18(1A) of the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (Class 4 contributions recoverable under the Income Tax Acts and under regulations), for “£42,385” (upper limit) in each place where it appears substitute “£43,000”. Amendments to the Social Security (Contributions) Regulations 2001 3 The Social Security (Contributions) Regulations 2001 are amended as follows. 4 In regulation 10 (earnings limits and thresholds)— a in the introductory words— i for “ and 9A” substitute “, 9A and 9B”; ii for “2015” substitute “2016”; b in paragraph (b) (upper earnings limit: primary Class 1 contributions), for “£815” substitute “£827”; c after paragraph (d) (secondary threshold: secondary Class 1 contributions), omit “and”; d in paragraph (e) (upper secondary threshold: secondary Class 1 contributions in relation to the Under 21 group)— i for “£815” substitute “£827”; and ii immediately before the end of that paragraph insert— ; and f the upper secondary threshold for secondary Class 1 contributions in relation to relevant apprentices (for the upper limit of zero-rate secondary Class 1 contributions) shall be £827 . 5 In regulation 11 (prescribed equivalents)— a in paragraph (1)— i in the introductory words for “and the primary and secondary thresholds” substitute “, the primary and secondary thresholds and the upper secondary thresholds”; and ii in sub-paragraph (a)— aa for “and 9(1)” substitute “9(1), 9A(9), and 9B(6)”; and bb for “and the calculation of secondary Class 1 contributions” substitute “, the calculation of secondary Class 1 contributions, the calculation of secondary Class 1 contributions in relation to the Under 21 age group and the calculation of secondary Class 1 contributions in relation to relevant apprentices”; b in paragraph (2A)— i in sub-paragraph (a) for “£3,532” substitute “£3,583”; and ii in sub-paragraph (b) for “£42,385” substitute “£43,000”; c in paragraph (3B)— i in sub-paragraph (a) for “£3,532” substitute “£3,583”; and ii in sub-paragraph (b) for “£42,385” substitute “£43,000”; d after sub-paragraph (3B) insert— 3C Subject to paragraphs (4) and (5), the prescribed equivalents of the upper secondary threshold for secondary Class 1 contributions in relation to relevant apprentices shall be— a where the earnings period is a month, £3,583; b where the earnings period is a year, £43,000; c where the earnings period is a multiple of a week, the amount calculated by dividing the figure in sub-paragraph (b) by 52 and multiplying the result by the corresponding multiple; d where the earnings period is a multiple of a month, the amount calculated by dividing the figure in sub-paragraph (b) by 12 and multiplying the result by the corresponding multiple; e in any other case, the amount calculated by dividing the figure in sub-paragraph (b) by 365 and multiplying the result by the number of days in the earnings period concerned. ; e in paragraph (4), for “ and paragraph (3B)(c) and (d)” substitute “, paragraph (3B)(c) and (d) and paragraph (3C)(c) and (d)”; and f in paragraph (5), for “ and paragraph (3B)(e)” substitute “, paragraph (3B)(e) and paragraph (3C)(e)”. PART 3 National Insurance Funds Prescribed percentage of estimated benefit expenditure – Great Britain 6 Section 2(2) of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament) has effect with respect to the tax year 2016-17 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent. Prescribed percentage of estimated benefit expenditure – Northern Ireland 7 Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into Northern Ireland National Insurance Fund out of appropriated money) has effect with respect to the tax year 2016-17 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent. George Hollingbery Mel Stride Two of the Lords Commissioners of Her Majesty’s Treasury 10th March 2016