Social Welfare Act, 1988
|
Insertion of Chapter 1A in Part II of Principal Act. |
11.—The Principal Act is hereby amended by the insertion in Part II after Chapter 1 of the following Chapter: | |
“Chapter 1A | ||
INSURED PERSONS, SELF-EMPLOYMENT CONTRIBUTIONS | ||
Self-employed contributors. | ||
17A.—(1) Subject to this Act— | ||
(a) every person who, being over the age of 16 years and under pensionable age (not being a person included in any of the classes of person specified in Part IIA of the First Schedule) who has reckonable income or reckonable emoluments shall be a self-employed contributor for the purposes of this Act, regardless of whether he is also an employed contributor, | ||
(b) every person becoming for the first time either an employed contributor or a self-employed contributor shall there-by become insured under this Act and shall thereafter continue throughout his life to be so insured, and | ||
(c) in the case of a person who, not having been an employed contributor at any time, becomes for the first time a self-employed contributor the first day of the contribution year in which he becomes a self-employed contributor shall be regarded as the date of entry into insurance. | ||
(2) Subject to this Act, where a person ceases to be a self-employed contributor otherwise than by reason of attaining pensionable age and has qualifying contributions in respect of not less than 156 contribution weeks, he shall, on making application in the prescribed manner and within the prescribed period, be entitled to become an insured person paying contributions under this Act voluntarily (in this Act referred to as a voluntary contributor). | ||
(3) A voluntary contributor shall if he becomes a self-employed contributor cease to be a voluntary contributor. | ||
(4) Regulations may provide for— | ||
(a) including among self-employed contributors classes of person or part of any such class of person specified in or included in Part IIA of the First Schedule, | ||
(b) adding to the classes of person specified in Part IIA of the First Schedule, | ||
(c) the modification of any of the provisions of this Act relating to self-employed contributors. | ||
(5) Where regulations are proposed to be made for the purposes of subsection (4), a draft thereof shall be laid before each House of the Oireachtas and the regulations shall not be made until a resolution approving of the draft has been passed by each such House. | ||
(6) Subsection (1) shall come into operation on 6th April, 1988. | ||
Payment of contributions into Social Insurance Fund. | ||
17B.—(1) For the purposes of section 9 there shall, in addition to the contributions provided for by that section, be contributions (in this Act referred to as self-employment contributions) in respect of self-employed contributors. | ||
(2) Self-employment contributions shall be paid into the Social Insurance Fund. | ||
Rates of self-employment contributions and related matters. | ||
17C.—Self-employment contributions shall be paid by self-employed contributors in accordance with the following provisions: | ||
(a) Subject to paragraphs (b), (d) and (k), where in any contribution year a self-employed contributor has reckonable income there shall be payable by him a self-employment contribution which shall— | ||
(i) with effect from 6th April, 1988, be of an amount equal to 3 per cent. of the reckonable income or the amount of £208, whichever is the greater, | ||
(ii) with effect from 6th April, 1989, be of an amount equal to 4 per cent. of the reckonable income or the amount of £208, whichever is the greater, and | ||
(iii) with effect from 6th April, 1990, be of an amount equal to 5 per cent. of the reckonable income or the amount of £208, whichever is the greater. | ||
(b) Where for any contribution year a self-employed contributor is informed by the Revenue Commissioners that he is not required to make a return of income within the meaning of section 48 (1) of the Finance Act, 1986 , self-employment contributions shall be paid by the self-employed contributor (whether by instalments or otherwise as may be prescribed) amounting to £104 in respect of that contribution year. | ||
(c) Subject to paragraphs (d) and (k), where in any contribution year a payment is made to a self-employed contributor in respect of reckonable emoluments of that self-employed contributor, there shall be payable by him a self-employment contribution which shall— | ||
(i) with effect from 6th April, 1988, be of an amount equal to 3 per cent. of the reckonable emoluments or the amount of £208, whichever is the greater, | ||
(ii) with effect from 6th April, 1989, be of an amount equal to 4 per cent. of reckonable emoluments or the amount of £208, whichever is the greater, and | ||
(iii) with effect from 6th April, 1990, be of an amount equal to 5 per cent. of reckonable emoluments or the amount of £208, whichever is the greater. | ||
(d) Contributions under paragraph (a) or (c) shall not be payable in any contribution year on so much (if any) of the reckonable income or reckonable emoluments for that year of a self-employed contributor as is in excess of £16,200. | ||
(e) The self-employment contribution payable by a self-employed contributor in accordance with paragraph (a), (b) or (c), whichever is appropriate, shall not be payable in the case of a self-employed contributor who is in receipt of any of the following: | ||
(i) a widow's (contributory) pension; | ||
(ii) a widow's (non-contributory) pension; | ||
(iii) deserted wife's benefit; | ||
(iv) deserted wife's allowance; | ||
(v) death benefit by way of widow's pension under section 50; | ||
(vi) a social assistance allowance under section 197; or | ||
(vii) a payment corresponding to a pension referred to in subparagraph (i) or (v) from the competent authority of a Member State (other than the State) of the European Communities under legislation to which the regulations of the Communities on the application of social security schemes to employed persons and their families moving within the territory of the European Communities apply. | ||
(f) During the period of three months beginning on 1st October, 1990, the Minister shall, in consultation with the Minister for Finance, review the provisions of this Chapter and of Chapters 7 and 11 insofar as they relate to self-employed contributors. | ||
(g) Subject to regulations under section 17D, where a self-employment contribution has been paid by a self-employed contributor of not less than the amount that he is liable to pay under paragraph (a) or the amount specified in paragraph (b), whichever is appropriate, he shall be regarded as having paid contributions for each contribution week in that contribution year and, where the contribution paid is less than the appropriate amount aforesaid no contribution shall be regarded as having been paid by the self-employed contributor in respect of any week of that contribution year. | ||
(h) The Minister may by regulations vary the sum specified in paragraph (d) and such variation shall take effect from the beginning of the contribution year following that in which the regulations are made. | ||
(i) Where regulations under paragraph (h) are proposed to be made, a draft of the proposed regulations shall be laid before each House of the Oireachtas and the regulations shall not be made until a resolution approving of the draft has been passed by each such House. | ||
(j) Subject to subsection (3) of section 17G, self-employment contributions shall be disregarded in determining whether the contribution conditions for any benefit other than old age (contributory) pension, widow's (contributory) pension or orphan's (contributory) allowance are satisfied. | ||
(k) A person who but for this paragraph would be liable for contributions of £208 under both paragraph (a) and paragraph (c) shall be liable only for a single contribution of £208. | ||
Regulations providing for determination of contributions payable. | ||
17D.—(1) Subject to subsection (2), regulations may provide for the determination of the contributions payable, the amount or rates of such contributions, and the contribution weeks in respect of which such contributions shall be regarded as having been paid, in the case of a person who— | ||
(a) becomes for the first time a self-employed contributor, | ||
(b) ceases to be a self-employed contributor, | ||
(c) is both an employed contributor and a self-employed contributor whether concurrently or not, | ||
(d) in any contribution year has reckonable emoluments but does not have reckonable income, | ||
(e) in any contribution year has both reckonable emoluments and reckonable income, | ||
(f) in any contribution year has reckonable emoluments which relate to a period less than the full year, or | ||
(g) in respect of the contribution year ended 5th April, 1989, is liable to pay a self-employment contribution of £104. | ||
(2) Regulations made under subsection (1) shall not cause an insured person to pay contributions on the excess over £16,200 of the aggregate of his total reckonable earnings, reckonable emoluments and reckonable income in any contribution year. | ||
(3) For the purposes of this section ‘contributions’ means employment contributions payable under section 10 and self-employment contributions payable under section 17C. | ||
Regulations varying rates of payment of self-employment contributions. | ||
17E.—(1) Regulations may alter the rates or amounts of self-employment contributions. | ||
(2) Where regulations under subsection (1) are proposed to be made, a draft thereof shall be laid before each House of the Oireachtas and the regulations shall not be made until a resolution approving of the draft has been passed by each such House. | ||
Regulations for collection of self-employment contributions, etc. | ||
17F.—(1) For the purposes of self-employment contributions payable under section 17C (b) and (c), regulations may provide for— | ||
(a) the time and manner of payment of self-employment contributions, | ||
(b) the collection and the recovery of and the furnishing of details in relation to self-employment contributions, | ||
(c) the charging of interest on arrears of self-employment contributions, | ||
(d) the waiving of interest due on arrears of self-employment contributions, | ||
(e) the estimation of amounts due in respect of self-employment contributions and appeals in relation to such estimates, | ||
(f) the furnishing of returns by employers in relation to periods of insurable self-employment, | ||
(g) the deduction by an employer from the reckonable emoluments of a self-employed contributor of any self-employment contribution reasonably believed by the employer to be due by the contributor, and adjustment in any case of overdeduction, and | ||
(h) any matter ancillary or incidental to any of the matters referred to in any of the preceding paragraphs of this subsection. | ||
(2) Without prejudice to the generality of subsection (1), regulations under that subsection may provide for the assignment of any function relating | ||
to a matter referred to in that subsection to the Collector-General or to such person as may be specified. | ||
(3) The provisions of any enactment or instrument made under statute relating to the estimation, collection or recovery of income tax or the inspection of records for those purposes or relating to appeals in relation to income tax shall with any necessary modifications apply in relation to self-employment contributions in respect of reckonable emoluments that the Collector-General is obliged to collect as they apply in relation to income tax. | ||
(4) Self-employment contributions payable by a self-employed contributor for a contribution year under section 17 C (a) in respect of reckonable income shall be assessed, charged and paid in all respects as if they were an amount of income tax and they may be stated in one sum (hereafter in this subsection referred to as the ‘aggregated sum’) with the income tax contained in any computation of or assessment to income tax made by or on the self-employed contributor for the year of assessment (within the meaning of the Income Tax Acts) which coincides with the contribution year and for this purpose the self-employed contributions may be so stated notwithstanding that there is no amount of income tax contained in the said computation or assessment and all the provisions of the Income Tax Acts, other than any such provisions in so far as they relate to the granting of any allowance, deduction or relief, shall apply as if the aggregated sum were a single sum of income tax. | ||
(5) Where an election made or deemed to be made under section 195 of the Income Tax Act, 1967 , has effect for the year of assessment the self-employment contributions payable by a wife shall be charged, collected and recovered as if they were the contributions of her husband provided that the question as to the amount of the self-employment contributions so payable in respect of the husband or the wife shall not be affected by the provisions of this subsection. | ||
(6) In any proceedings instituted by virtue of this Act, a certificate purporting to be signed by the Collector-General or by an officer duly appointed by the Minister in that behalf which certifies that an amount in respect of employment or self-employment contribution is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable. | ||
Voluntary contributions. | ||
17G.—(1) A voluntary contribution in the case of a person who becomes a voluntary contributor under section 17A (2) shall be at the rate of £208 in a contribution year payable at such time or times and in such manner as the Minister may prescribe. | ||
(2) Subject to subsection (3), voluntary contributions paid by a person under subsection (1) shall be disregarded for all benefit other than old age (contributory) pension, widow's (contributory) pension and orphan's (contributory) allowance. | ||
(3) Self-employment contributions paid by a person who, being a voluntary contributor becomes a self-employed contributor on or after 6th April, 1988, and any subsequent voluntary contributions paid by such persons, shall also be reckonable for— | ||
(a) in the case of a person whose rate of voluntary contribution, immediately before ceasing to be a voluntary contributor, was determined under section 11 (1) (b) (i), deserted wife's benefit, | ||
(b) in the case of a person whose rate of voluntary contribution, immediately before ceasing to be a voluntary contributor, was determined under section 11 (1) (b) (ii), retirement pension, deserted wife's benefit and death grant, and | ||
(c) in the case of a person whose rate of voluntary contribution, immediately before ceasing to be a voluntary contributor, was determined under section 11 (1) (b) (iii), retirement pension and death grant. | ||
(4) A voluntary contribution paid under subsection (1) shall be regarded as having been paid for each contribution week in that contribution year. | ||
(5) This section shall come into operation on 6th April, 1988.”. |