S.I. No. 121/1991 - Social Welfare (Miscellaneous Provisions For Self-Employed Contributors) (Amendment) Regulations, 1991.

S.I. No. 121 of 1991.

SOCIAL WELFARE (MISCELLANEOUS PROVISIONS FOR SELF-EMPLOYED CONTRIBUTORS) (AMENDMENT) REGULATIONS, 1991.

The Minister for Social Welfare, in exercise of the powers conferred on him by section 3 of the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981 ), by section 17D of that Act (inserted by section II of the Social Welfare Act, 1988 (No. 7 of 1988)) and by section 16 of the Social Welfare Act, 1988 , hereby makes the following Regulations:—

1 Short title

1. These Regulations may be cited as the Social Welfare (Miscellaneous Provisions for Self-Employed Contributors) (Amendment) Regulations, 1991.

2 Commencement.

2. These Regulations shall come into operation on the 6th day of April, 1991.

3 Interpretation.

3. In these Regulations—

"the Principal Act" means the Social Welfare (Consolidation) Act, 1981 ;

"the Principal Regulations" means the Social Welfare (Miscellaneous Provisions for Self-Employed Contributors) Regulations, 1988 ( S.I. No. 62 of 1988 ).

4 Determination of self-employment contributions payable

4. The Principal Regulations are hereby amended by the substitution for articles 3 to 8 thereof of the following articles:—

"3. (1) Where a person becomes a self-employed contributor for the first time, or recommences insurable self-employment in a contribution year, not having previously been an employed contributor, and is a person to whom paragraph (a) or paragraph (c) of section 17C of the Principal Act refers, self-employment contributions shall be payable by him at the percentage amount specified in paragraph (a) or paragraph (c) of the said section 17C, as the case may be, or the amount of £234, whichever is the greater.

(2) In the case of a person to whom this article refers, the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid shall, provided that the total amount of self-employment contributions payable by virtue of sub-article (1) of this article has been paid, be 52 in any contribution year.

(3) The provisions of this article shall, notwithstanding sub-article (1) of this article, also apply in the case of a person who becomes a self-employed contributor for the first time in any contribution year or who recommences insurable self-employment in any contribution year and who was previously in such contribution year an employed contributor in respect of whom contributions were payable by virtue of the provisions of article 5, 6 or 7 of the Social Welfare (Modifications of Insurance) Regulations, 1991 ( S.I. No. 94 of 1991 ).

4. (1) Where a self-employed contributor ceases insurable self-employment in a contribution year and does not become an employed contributor in that contribution year and is a person to whom paragraph (a) or paragraph (c) of section 17C of the Principal Act applies, self-employment contributions shall be payable by him at the percentage amount specified in paragraph (a) or paragraph (c) of the said section 17C, as the case may be, or the amount of £234, whichever is the greater.

(2) In the case of a person to whom this article refers, the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid shall, provided that the total amount of self-employment contributions payable by virtue of sub-article (1) of this article have been paid, be 52 in any contribution year.

5. (1) Where—

(a) a person is concurrently an employed contributor by virtue of section 5 (1) of the Principal Act and a self-employed contributor in a contribution year, and

(b) the total number of contribution weeks in respect of which self-employment contributions have been paid and the total number of contribution weeks in respect of which employment contributions, (other than contributions paid by virtue of paragraph (b) of subsection (1) of the said section 5 only) have been paid, or treated as paid, or would have been payable but for the provisions of paragraph (c) or (cc) of section 10 (1) of the Principal Act or have been credited, is less than or in excess of 52,

the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid shall be determined by deducting the number of contribution weeks in respect of which employment contributions have been paid or credited from 52 and treating the remainder as the number of contribution weeks in respect of which self-employment contributions have been paid.

(2) Notwithstanding sub-article (1) of this article, a self-employment contribution may be treated as having been paid in respect of any contribution week for which an employment contribution has been credited for the purposes of the contribution conditions for old age (contributory) pension, widow's (contributory) pension and orphan's (contributory) allowance requiring a minimum number of qualifying contributions to have been paid.

(3) Where a peson to whom this article refers has paid employment contributions and self-employment contributions for any contribution year and the aggregate of his reckonable income, reckonable emoluments (if any) and reckonable earnings has exceeded the sum specified in paragraph (d) of section 17C of the Principal Act he shall be entitled, subject to article 31 of these Regulations, to a refund of the self-employment contributions paid on that portion of his reckonable income or reckonable emoluments (or both) which represents the difference between the aggregate of his reckonable income or reckonable emoluments (or both) and his reckonable earnings and the sum so specified.

6. (1) Where a person—

(a) becomes a self-employed contributor subsequent to being an employed contributor in any contribution year, or

(b) is a self-employed contributor prior to being an employed contributor in any contribution year,

and is a person to whom paragraph (a) or paragraph (c) of section 17C of the Principal Act refers, self-employment contributions shall be payable by him at whichever of the following amounts is appropriate:—

(i) where the aggregate of his reckonable earnings, reckonable emolument and reckonable income exceeds the sum for the time being specified in paragraph (d) of the said section 17C, an amount calculated at the percentage amount specified in paragraph (a) or paragraph (c) of the said section 17C, as the case may be, on that portion of his reckonable income or reckonable emoluments (or both) which when combined with his reckonable earnings would bring the aggregate of his reckonable income, reckonable emoluments and reckonable earnings up to the sum so specified or an amount calculated at the rate of £4.50 for each contribution week of insurable self-employment, whichever is the greater,

(ii) where the aggregate of his reckonable income, reckonable emoluments and reckonable earnings does not exceed the sum specified in paragraph (d) of the said section 17C in the contribution year, an amount calculated at the percentage amount specified in paragraph (a) or paragraph (c) of the said section 17C, as the case may be, of his reckonable income or reckonable emoluments in that contribution year or an amount calculated at the rate of £4.50 for each contribution week of insurable self-employment, whichever is the greater.

(2) In the case of a person to whom this article refers, the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid, shall (subject to the appropriate amount of self-employment contributions having been paid and, notwithstanding the provisions of paragraph (e) of section 17C of the Principal Act), be determined by deducting the number of contribution weeks in which the person was an employed contributor from 52, and the number so determined shall be regarded as the number of contribution weeks in respect of which self-employment contributions shall be regarded as having been paid.

7. Where a self-employed contributor has both reckonable income and reckonable emoluments in the same contribution year, the aggregate of which exceeds the sum specified in paragraph (d) of section 17C of the Principal Act, his liability for self-employment contributions in respect of his reckonable income shall be determined by taking into account the amounts of self-employment contributions paid or payable in respect of his reckonable emoluments and he shall be liable to pay the self-employment contributions on that portion of his reckonable income which would bring the aggregate of his reckonable emoluments and reckonable income up to the amount for the time being specified in the said paragraph (d).

8. (1) Where a self-employed contributor receives payments of reckonable emoluments only for any contribution year and he has paid self-employment contributions of an amount not less than that which he is liable to pay under paragraph (c) of section 17C of the Principal Act he shall, subject to the provisions of the sub-article (2) of this article, be regarded as having paid self-employment contributions for each contribution week in that contribution year.

(2) Where the amount which a self-employed contributor to whom subarticle (1) of this article applies is less than the amount which, under paragraph (c) of section 17C of the Principal Act and these Regulations, he is liable to pay in any contribution year, no contribution shall be regarded as having been paid by the self-employed contributor in respect of any week in that contribution year.".

5 Application of the Principal Act.

5. (1) Subsection (1) of section 16 of the Principal Act shall apply to self-employed contributors and self-employment contributions and in such application shall be modified as set out in the Table to this article.

(2) Article 5 of the Social Welfare (Contributions) (Amendment) (No. 2) Regulations, 1990 is herby revoked.

TABLE

16.—(1) Regulations shall provide for the return, subject to any conditions, restrictions and deductions specified in the regulations, of sums paid in error by way of self-employment contributions and of so much of any self-employment contribution paid by a self-employed contributor or a voluntary contribution payable under section 17G by a voluntary contributor, who entered into insurance for the purposes of section 79 (1) after he had attained the age of 56 years, as is determined in accordance with regulations to have been paid in respect of old age (contributory) pension.

GIVEN under the Official Seal of the Minister for Socal Welfare

this 5th day of April, 1991.

MICHAEL WOODS,

Minister for Social Welfare.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance this 5th day of April, 1991.

ALBERT REYNOLDS,

Minister for Finance.

EXPLANATORY NOTE.

The Social Welfare Act, 1991 provides for an increase from £208 to £234 a year in the minimum contribution payable by a self-employed contributor, with effect from 6 April, 1991. These Regulations provide for a similar increase in the minimum yearly contribution payable by a self-employed contributor who—

( a ) commences or ceases to be a self-employed contributor during the course of a contribution year, or

( b ) is both an employed contributor or a self-employed contributor during the course of a contribution year, or

( c ) has self-employment income from a number of sources, or

( d ) only has self-employment income by way of emoluments subject to income tax under Schedule E.