Social
Security (Contributions) (Jersey) Order 1975[1]
part A1[2]
interpretation and general
A1 Interpretation[3]
(1) In this Order, unless the context otherwise
requires –
“below compulsory school age” has the same meaning as in Article 2
of the Education (Jersey) Law 1999;
“contribution liability notice” has the same meaning as in the Social Security (Collection of Class 1 and
Class 2 Contributions) (Jersey) Order 2013;
“due date” means, in relation to any contribution under the Law, the
day on which that contribution was due to be paid;
“gainful occupation” means any work done by a person for reward or
in the course of his or her own business;
“income from self-employment” has the meaning given in Schedule 2;
“Law” means the Social Security (Jersey) Law 1974;
“total income” has the meaning given in Schedule 2.[4]
(2) In this Order the following expressions,
when used in relation to a Class 1 insured person, have the same meaning
as in Schedule 1A to the Law –
(a) subject to this Order,
“earnings”;
(b) “lower monthly earnings
limit”;
(c) “standard monthly
earnings limit”;
(d) “upper monthly earnings
limit”;
(e) “primary Class 1
contributions”;
(f) “secondary Class 1
contributions”.
(3) In this Order the following expressions,
when used in relation to a Class 2 insured person, have the same meaning
as in Schedule 1B to the Law –
(a) subject to this Order,
“earnings”;
(b) “lower monthly earnings
limit”;
(c) “standard monthly
earnings limit”;
(d) “full rate Class 2
contributions”;
(e) “reduced rate
Class 2 contributions”.
A2 Class 1 insured
person – earnings[5]
Schedule 1 has effect, for the purposes of the Law, to modify
what payments or benefits are, or are not to be treated as, the earnings of a
Class 1 insured person, to determine the value attributable to any benefit
and to determine the time when any earnings are taken to have been paid or the
period to which any earnings relate.
A3 Class 2 insured
person – income arising from self-employment, total income and earnings[6]
Schedule 2 has effect –
(a) to define a person’s income from
self-employment and a person’s total income;
(b) to determine the value attributable to any
benefit in kind taken into account as income arising from self-employment or
earnings; and
(c) to modify what are the earnings of a
Class 2 insured person in specified cases.
A4 Application to long-term
care contributions[7]
(1) Except as provided by paragraph (2),
nothing in this Order applies in respect of an insured person’s liability to
pay or entitlement to a credit for LTC contributions.
(2) Article 17 shall apply to LTC
contributions.
(3) Article 18 shall apply to an amount
paid in the erroneous belief that it was an LTC contribution payable under the
Law.
PART 1
EXCEPTIONS AND CREDITS
1 Unemployment
(1) Subject to paragraphs (2) and (3) and Articles 2,
5, and 15, an insured person shall be excepted from liability to pay a
contribution under the Law for any period of at least 7 consecutive days of
unemployment if the person proves to the satisfaction of the Minister that he
or she has become unemployed following employment in an employed person’s
employment and that he or she normally relies upon such employment for his or
her livelihood, and Class 1 contributions shall be credited in accordance with
Article 15 to the person in respect of each day in that period.[8]
(2) A contribution shall not be credited to any
person under this Article for any period of unemployment unless the person
furnishes, in respect of every day of unemployment in that period, the proof
required by Article 2(1)(a)(i) by a declaration or declarations in writing
made at the office of an administration of the States for which the Minister is
assigned responsibility on such days and at such intervals as the Minister may
require.
(3) A person shall not be excepted from
liability and contributions shall not be credited in respect of any period that
is more than 6 months before the day that the Minister is satisfied as to
the proof required under paragraph (1).[9]
2 Provisions determining
days of unemployment
(1) For the purposes of Article 1 the
following provisions shall apply –
(a) a day shall not be a day
of unemployment –
(i) unless on that day the person concerned
proves, in such a manner as the Minister may require, that the person is
unemployed and capable of work and available for employment in an employed person’s
employment,
(ii) if on that day the person
concerned does not work, and is on holiday,
(iii) if on that day the person
concerned is following any gainful occupation, unless –
(A) that occupation could
ordinarily have been followed by the person in addition to the person’s usual
employment and outside the ordinary working hours of employment, and
(B) the earnings derived
therefrom, in respect of that day do not exceed one seventh of the standard
rate of benefit, or where the earnings are earned in respect of a period longer
than a day, the earnings do not on the daily average exceed that amount;
(b) where in respect of any
day a person places restrictions on the nature, hours, rate of remuneration or
locality or other conditions of employment which the person is prepared to
accept and as a consequence of those restrictions has no reasonable prospects
of securing employment, that day shall not be treated as a day of unemployment
unless –
(i) the person is prevented from having
reasonable prospects of securing employment consistent with those restrictions
only as a result of adverse industrial conditions in Jersey which may
reasonably be regarded as temporary, and, having regard to all the
circumstances, personal and other, the restrictions which the person imposes
are reasonable,
(ii) the restrictions are
nevertheless reasonable in view of the person’s physical condition, or
(iii) the restrictions are
nevertheless reasonable having regard both to the nature of the person’s usual
occupation and also to the time which has elapsed since the person became
unemployed;
(c) where the person
concerned has lost employment in an employed person’s employment by reason of a
stoppage of work which was due to a trade dispute at the person’s place of
employment, the period during which the stoppage of work continues shall not be
a period of unemployment, except in a case where, during the stoppage of work, the
person has become bona fide employed elsewhere in the occupation which the person
usually follows or has become regularly engaged in some other occupation:
Provided that this sub-paragraph shall not apply in the case of a person
who proves –
(i) that the person is not participating in or
financing or directly interested in the trade dispute which caused the stoppage
of work, and
(ii) that the person does not
belong to a grade or class of workers of which, immediately before the
commencement of the stoppage, there were members employed at the person’s place
of employment any of whom are participating in or financing or directly
interested in the dispute;
(d) where the person
concerned –
(i) has lost the person’s employment in an
employed person’s employment through the person’s misconduct, or has
voluntarily left such employment without just cause,
(ii) after a situation in any
suitable employment has been notified to the person by an officer in an
administration of the States for which the Minister is assigned responsibility,
or by or on behalf of an employer, as vacant or about to become vacant, has
without good cause refused or failed to apply for that situation or refused to
accept that situation when offered to the person,
(iii) has neglected to avail himself
or herself of a reasonable opportunity of suitable employment, or
(iv) has without good cause
refused or failed to carry out any written recommendations given to the person
by an officer in an administration of the States for which the Minister is
assigned responsibility with a view to assisting the person to find suitable
employment, being recommendations which were reasonable having regard to the person’s
circumstances and to the means of obtaining that employment usually adopted,
the period thereafter during which the person is unemployed shall
not, unless the Minister otherwise determines, be a period of interruption of
employment;
(e) where the person
concerned is a seasonal worker, no day during the person’s off-season shall be
a day of unemployment;
(f) any period in respect of
which the person concerned –
(i) is disqualified for receiving incapacity
benefit or maternity allowance by any Order made under Article 18 or
Article 22 respectively of the Law, or
(ii) is unable to satisfy any
additional conditions with respect to the receipt of incapacity benefit imposed
in the person’s case by any Order made under Article 18 of the Law,
shall not be a period of unemployment;
(g) any period in respect of
which the person concerned is disqualified for receiving incapacity benefit or
maternity allowance by any Order made under Article 29(1)(c) of the Law
shall not be a period of unemployment.[10]
(2) For the purposes of paragraph (1)(d),
employment shall not be deemed to be employment suitable in the case of a person
if it is employment in a situation vacant in consequence of a stoppage of work
due to a trade dispute.
(3) In this Article –
“off-season” means, in relation to a seasonal worker, that part, or,
if more than one part, those parts, of the year during which the worker is not
normally employed;
“place of employment”, in relation to any person, means the factory,
workshop, farm or other premises or place at which the person was employed, so,
however, that where separate branches of work which are commonly carried on as
separate business in separate premises or at separate places are in any case
carried on in separate departments on the same premises or at the same place,
each of those departments shall, for the purposes of this Article be deemed to
be a separate factory or workshop or farm or separate premises or a separate
place, as the case may be;
“seasonal worker” means an insured person whose normal employment is
for a part or parts only of a year in an occupation or occupations of which the
availability or extent varies with the season of the year, or any other insured
person who normally restricts his or her employment to the same, or substantially
the same, part or parts only of the year;
“trade dispute” means any dispute between employers and employees or
between employees and employees which is connected with the employment or
non-employment or the terms of employment or the conditions of employment of
any persons, whether employees in the employment of the employer with whom the
dispute arises or not;
“year” (where used in the definitions of “off season” and “seasonal
worker”) means the period of 12 months commencing with the first day in the
calendar year on which the person concerned begins a period of normal
employment.
3 Incapacity for work
(1) Subject to paragraph (3) and Articles 4
and 5, an insured person shall be excepted from liability to pay a contribution
under the Law for any period during which the person is incapable of work and,
in the case of a Class 1 insured person, is not in receipt of earnings from his
or her employer.[11]
(2) Subject to paragraph (3), an insured person
who has been excepted from liability to pay a contribution for any period in
excess of one day by virtue of paragraph (1) shall be credited, for that
period, with contributions of the appropriate class in accordance with and
subject to the provisions of Article 15:
Provided that the person has paid contributions before the end of
the relevant quarter and the annual contribution factor derived from those
contributions is not less than 0.25.[12]
(3) A person shall not be excepted from
liability and contributions shall not be credited in respect of any period that
is more than 6 months before the person furnishes to the Minister such
evidence as the Minister requires of the matters described in paragraph (1).[13]
4 Provisions determining
days of incapacity for work
(1) For the purposes of Article 3, a day shall
not be a day of incapacity for work unless on that day the person concerned is
incapable of work by reason of some specific disease or bodily or mental
disablement.
(2) For the purposes of Article 3, the
following provisions shall apply –
(a) a day which is, in
accordance with any Order made under Article 18 of the Law, treated for
the purposes of incapacity benefit as a day of incapacity for work shall be a
day of incapacity for work for the purposes of this Article, but any day which
under any such Order is treated as not being such a day shall not be a day of
incapacity for those purposes;
(b) any period in respect of
which the person concerned is disqualified for receiving incapacity benefit by
reason of the provisions of any Order made under Article 18 of the Law
shall not be a period of incapacity for work;
(c) any period in respect of
which the person concerned is disqualified for receiving incapacity benefit by
reason of the provisions of any Order made under Article 29(1)(c) of the Law
shall not be a period of incapacity for work.[14]
5 Persons unemployed and
incapable of work during the same period
For the purposes of Articles 1 and 3, where in any period of 7
consecutive days a person is for part of that period unemployed and for the
remainder of that period incapable of work, the person shall be treated as if
incapable of work for the whole of that period and the said Articles shall be
construed accordingly.[15]
6 Persons in receipt of
long term incapacity allowance[16]
(1) Subject to paragraph (5), an insured
person who is in receipt of long term incapacity allowance shall, if the
percentage of the person’s degree of incapacitation is specified in
Column 1 of Schedule 3, be excepted from liability to pay a
contribution under the Law for the period of months specified in respect of
that percentage in Column 2 of Schedule 3.[17]
(2) Subject to paragraph (5), an insured
person who has been excepted from liability to pay a contribution for any
period by virtue of paragraph (1) shall be credited, for that period, with
contributions of the appropriate class in accordance with and subject to the
provisions of Article 15.[18]
(3) If an insured person is in receipt of long
term incapacity allowance in respect of incapacitation arising independently
from each of 2 or more relevant diseases or injuries, the person’s exception
under this Article from liability to pay a contribution and the contributions
with which the person is entitled under this Article to be credited shall be
calculated on the aggregate of the percentages of the person’s degrees of
incapacitation.
(4) However, to the extent that the aggregate
of those percentages exceeds 100%, it shall be disregarded.
(5) A person shall not be excepted from
liability and contributions shall not be credited in respect of any period
before the commencement of the period for which the person receives long term
incapacity allowance.[19]
6A Persons in receipt of
incapacity pensions[20]
(1) Subject to paragraph (3), an insured
person who is in receipt of an incapacity pension shall be excepted from
liability to pay a contribution under the Law for the period from the date on
which the person becomes entitled to that pension until the end of the month
before the one in which the person attains pensionable age.[21]
(2) An insured person who has been excepted
from liability to pay a contribution for any period by virtue of paragraph (1)
shall be credited, for that period, with contributions of the appropriate class
in accordance with and subject to paragraph (3) and Article 15.[22]
(3) A person shall not be excepted from
liability and contributions shall not be credited in respect of any period
before the commencement of the period for which the person receives the
incapacity pension.[23]
7 Persons over
pensionable age
(1) An insured person shall be excepted from
liability to pay Class 2 or Class 1 primary contributions –
(a) from the end of the month
in which the person becomes entitled to a reduced old age pension under Article 25(1A)
of the Law; or
(b) if the person does not
become entitled to such a pension, from the end of the month in which the person
attains pensionable age.[24]
(2) For the purposes of this Article, a woman
who was insured under the Law of 1950 shall be deemed to reach pensionable
age on her 60th birthday.
(3) For the avoidance of doubt, nothing in this
Article shall relieve an employer of any liability imposed on the employer by
the Law in relation to secondary Class 1 contributions.
8 Imprisonment or
detention in legal custody
(1) An insured person shall be excepted from
liability to pay a contribution under the Law for any month during the whole of
which the person is undergoing imprisonment or detention in legal custody, but
contributions under this Order shall not be credited in respect of any such
month except in respect of any month for which, on release, incapacity benefit
is payable in accordance with any Order made under the Law, and then only in
accordance with and subject to the provisions of Articles 3 and 4.[25]
(1A) Paragraph (1) shall not apply to a person
undergoing imprisonment or detention in custody who, in any week, is
undertaking paid work outside the prison or other place of detention as part of
a programme of rehabilitation for more than the number of hours prescribed for
the period of a week under Article 5(3)(b) of the Law.[26]
(2) If any person to whom paragraph (1) is
applicable so desires, the person may for any such month pay a Class 2
contribution –
(a) at any time before the
month following the one in which the person becomes entitled to a reduced old
age pension under Article 25(1A) of the Law; or
(b) if the person does not
become entitled to such a pension, at any time before the person attains
pensionable age.[27]
(3) The contribution payable under paragraph (2)
shall be the full rate Class 2 contribution applicable at the date of
payment in relation to the person.[28]
9 Persons in receipt of
survivor’s allowance[29]
(1) A woman shall be excepted from liability to
pay a contribution under the Law to the extent and subject to the conditions
set out below in respect of any month for which survivor’s allowance is payable
to her, namely –
(a) if she has made
application to the Minister for exception from such liability and that
application has been granted, she shall be excepted from liability to pay a
contribution under the Law in respect of any month during which she is so
excepted:
Provided that –
(i) she may give notice to the Minister at any
time while she is so excepted that she desires the exception to be cancelled;
and, if such notice is so given, the exception shall cease to be in operation
from the end of the current contribution month or such other date as the
Minister may determine,
(ii) she shall notify her
employer of any such exception granted to her and give her employer her
contribution liability notice in the form “XR1”, and, if she exercises the
foregoing right to cancel such an exception she shall forthwith notify her
employer to that effect, apply for a contribution liability notice in the form “FR1”,
and give such notice to her employer,
(iii) if immediately before the
death of her husband she was a Class 1 insured person who had elected not to
pay, or was a Class 2 insured person who had not elected to pay, contributions
as such a person, such an application shall be deemed to have been made and
granted, unless she notifies the Minister to the contrary.[30]
(2) A contribution as a Class 2 insured person
shall be credited to a woman in respect of any month specified in paragraph (1),
not being a month in respect of which a contribution is payable under the Law
or a month in respect of which any such contribution is credited to her in
accordance with the provisions of Articles 3 and 10 of this Order.
(3) The provisions of paragraphs (1) and (2)
shall apply mutatis mutandis to a man in
receipt of survivor’s allowance.[31]
9A Persons in receipt of home
carer’s allowance[32]
(1) An insured person who is in receipt of home
carer’s allowance shall be excepted from liability to pay a contribution under
the Law in respect of any month for which the person has applied to the
Minister for, and been granted by the Minister, such exception.
(2) An insured person who has been excepted
from liability to pay a contribution for any month by virtue of paragraph (1)
shall be credited, for that month, with contributions of the appropriate class
in accordance with and subject to the provisions of Article 15.
(3) A person shall not be excepted from
liability and contributions shall not be credited in respect of any period
before the commencement of the period for which the person receives home
carer’s allowance.
10 Full time education[33]
(1) An insured person shall be excepted from
liability to pay a contribution as a Class 2 insured person for any month
during the whole of which the person is engaged in full-time education.[34]
(2) For any month of such education, a person
may, if the person so desires, pay a contribution as a Class 2 insured person
and such payment may be made at any time before the person attains pensionable
age:
Provided that any contribution so paid shall be the full rate Class
2 contribution applicable at the date of payment.[35]
(3) To any person who –
(a) is excepted from
liability to pay contributions under paragraph (1);
(b) has attained the age
of 18 years but has not attained pensionable age; and
(c) is ordinarily resident in
Jersey,
there shall be credited for each month during which the person is so
excepted (but for a maximum period or periods not exceeding 3 years in the
aggregate) a Class 2 contribution.[36]
11 [37]
12 Small income exception[38]
(1) A Class 2 insured person is eligible
to apply for an exception from liability to pay Class 2 contributions
under this Article if the person’s estimated total income for the year for
which the person applies for the exception, after the amounts described in
paragraph (3) have been disregarded, does not exceed the specified amount
for that year.
(2) The “specified amount” for the year is one
third of the annual equivalent of the standard monthly earnings limit for Class 2
contributions.
(3) The amounts to be disregarded are –
(a) any payment of sick pay
received from a friendly society or trade union;
(b) any payment in respect of
a disablement pension awarded under the Personal Injuries (Emergency
Provisions) Act 1939 of the United Kingdom, including an increase of such
a pension in respect of dependants, if and to the extent that it is not already
disregarded as total income, by virtue of Article 117 of the Income Tax (Jersey) Law 1961; and
(c) any payment by way of
long term incapacity allowance under Article 16 of the Law.
(4) A person applying for an exception under
this Article must –
(a) make the application
using such form and in such manner as the Minister has approved; and
(b) furnish to the Minister
such information and evidence relating to the person’s income described in
paragraph (1) as the Minister may require.
(5) The Minister shall, on an application being
made by an eligible person in accordance with paragraph (4), grant the
person an exception from liability to pay Class 2 contributions.
(6) An exception –
(a) subject to paragraph (8),
shall be in force for such period as the Minister may determine; and
(b) may be subject to
conditions determined by the Minister.
(7) The person granted the exception
must –
(a) notify the Minister,
forthwith, if a condition of the exception ceases to be fulfilled; and
(b) furnish to the Minister
any further information and evidence regarding the person’s income described in
paragraph (1) as the Minister may require from time to time.
(8) The exception shall end upon a condition of
the exception ceasing to be fulfilled.
(9) The person granted the exception may notify
the Minister, at any time while the exception is in force, that the person
wishes the exception to end.
(10) Where the Minister is notified under
paragraph (9), the exception shall end on such date as the Minister may
determine.
(11) Nothing in this Order shall preclude a
person from receiving benefit, while the person is excepted from liability
under this Article, by virtue of contributions paid by or credited to the
person in respect of any period before the day on which the exception
commenced.
(12) Contributions shall not be credited to a person
who has been granted exception from liability under this Article while that exception
remains in force.
13 Special exception from
liability to pay Class 2 contributions[39]
(1) A Class 2 insured person is eligible
to apply for an exception from liability to pay contributions in a year under
this Article if –
(a) the sum of the person’s
income from self-employment and Class 1 earnings (if any) is less than the
lower earnings limit; and
(b) the person’s total income
is less than two thirds of the standard earnings limit.
(2) A person applying for an exception under
this Article must –
(a) make the application, in
writing, to the Minister; and
(b) produce his or her tax
assessment and such additional evidence as the Minister may require of the
person’s income and earnings described in paragraph (1) for the relevant
income tax year of assessment.
(3) If the person was in full-time education or
training in the year before the concession year the Minister may accept
evidence of an estimate of the person’s income from self-employment, Class 1
earnings and total income for the current year.[40]
(4) The Minister shall, on an application being
made by an eligible person in accordance with paragraph (2), grant the
person an exception from liability to pay Class 2 contributions for the
period from –
(a) 1st January, if the
application is made on or before 15th June in the same year;
(b) 1st April, if the
application is made on or before 15th September in the same year;
(c) 1st July, if the
application is made on or before 15th December in the same year; or
(d) 1st October, if the
application is made on or before 15th March in the following year,
to the end of the year.
13A Reduced rate Class 2
contributions[41]
(1) A Class 2 insured person is eligible
to apply to pay reduced rate Class 2 contributions in a year on the basis
that the person’s earnings are deemed to be of an amount equal to the standard
earnings limit if –
(a) the sum of the person’s
income from self-employment and Class 1 earnings (if any) is less than the
lower earnings limit; and
(b) the person’s total income
is less than the standard earnings limit.
(2) A Class 2 insured person is eligible
to apply to pay reduced rate Class 2 contributions in a year on the basis
that the person’s total income is the person’s earnings if –
(a) the sum of the person’s
income from self-employment and Class 1 earnings (if any) is less than the
lower earnings limit; and
(b) the person’s total income
is not less than the standard earnings limit.
(3) A Class 2 insured person is eligible
to apply to pay reduced rate Class 2 contributions in a year on the basis
that the person’s earnings are the sum of his or her income from
self-employment and Class 1 earnings (if any) if –
(a) the sum of the person’s
income from self-employment and Class 1 earnings (if any) is not less than
the lower earnings limit; and
(b) the person’s total income
is less than four thirds of the standard earnings limit.
(4) A Class 2 insured person is eligible
to apply to pay reduced rate Class 2 contributions in a year on the basis
that the person’s earnings are his or her total income if –
(a) the sum of the person’s
income from self-employment and Class 1 earnings (if any) is not less than
the lower earnings limit; and
(b) the person’s total income
is not less than four thirds of the standard earnings limit.
(5) A person applying to pay reduced rate
contributions under any of paragraphs (1) to (4) must –
(a) make the application, in
writing, to the Minister; and
(b) produce his or her tax
assessment and such additional evidence as the Minister may require of the
person’s income and earnings described, as the case requires, in paragraph (1),
(2), (3) or (4), for the relevant income tax year of assessment.
(6) If the person was in full-time education or
training in the year before the concession year the Minister may accept
evidence of an estimate of the person’s income from self-employment, Class 1
earnings and total income for the current year.[42]
(7) The Minister shall, on an application being
made by an eligible person in accordance with paragraph (5), permit the
person to pay Class 2 reduced rate contributions in accordance with the
rule in paragraph (1), (2), (3) or (4) applicable in the person’s case,
for the period from –
(a) 1st January, if the
application is made on or before 15th June in the same year;
(b) 1st April, if the
application is made on or before 15th September in the same year;
(c) 1st July, if the
application is made on or before 15th December in the same year; or
(d) 1st October, if the
application is made on or before 15th March in the following year,
to the end of the year.
13B Interpretation of Articles 13
and 13A[43]
In Articles 13 and
13A –
(a) a reference to the income from
self-employment of a person making an application under the Article is a reference
to that income for the relevant income tax year of assessment;
(b) a reference to the Class 1 earnings of
a person making an application under the Article is a reference to the person’s
earnings from Class 1 employment for the relevant income tax year of
assessment;
(c) a reference to the total income of a person
making an application under the Article is a reference to that income for the
relevant income tax year of assessment;
(d) the “lower earnings limit” means the annual
equivalent of the lower monthly earnings limit for the year to which an
application relates;
(e) the “standard earnings limit” means the
annual equivalent of the standard monthly earnings limit for the year to which
an application relates;
(f) the “relevant income tax year of assessment”
is the second year preceding the concession year; and
(g) the “concession year” means the year in
which, if a person’s application under Article 13 or 13A is granted, the
period described in Article 13(4) or 13A(7) applicable in the person’s case
would fall.
13C Low earnings employee
classified as Class 2 insured person[44]
A Class 2 contribution payable for a month by a person who,
under paragraph 14 of Part 2 of Schedule 1 to the Social Security (Classification) (Jersey)
Order 1974, is treated as a Class 2 insured person, shall be reduced by
the amount of any Class 1 contributions paid in respect of the person for
that month.
13D Class 2 – deferred
contributions for business commencement[45]
(1) Subject to paragraph (10), a
Class 2 insured person is eligible to apply for a concession under this
Article for a year if –
(a) the year is an opening
year of a business in which the person commences or has commenced;
(b) before commencing in business
the person is –
(i) a Class 1 insured person,
(ii) unemployed, or
(iii) in full-time education.
(2) For the purposes of paragraph (1) –
(a) the opening years of a
business are –
(i) if a person commences in business on any
day in January in a year, that year and the following year, or
(ii) if a person commences in
business on any other day in a year, that year and the following 2 years;
(b) a person commences in
business if the person establishes a new business or, otherwise than as an
employee, joins an existing business;
(c) a person is unemployed at
any time if the person proves, in such manner as the Minister may require, that
at that time the person was unemployed and available for employment in an
employed person’s employment.
(3) A person applying for a concession under
this Article must –
(a) make the application, in
writing, to the Minister; and
(b) produce his or her tax
assessment and such additional evidence as the Minister may require of
earnings, whether as a Class 1 insured person or Class 2 insured
person, for the relevant income tax year of assessment.
(4) The “relevant income tax year of
assessment” is the second year preceding the year in which, if the application
is granted, the concession period would fall.
(5) If the person was in full-time education or
training in the year before the year in which, if the application is granted,
the concession period would fall, the Minister may accept evidence of an
estimate of the earnings, whether as a Class 1 insured person or Class 2 insured
person, for the current year.[46]
(6) Subject to paragraphs (7), (9) and
(10), the Minister shall, on an application being made by an eligible person in
accordance with paragraph (3), grant the person a concession to pay,
during the concession period, reduced rate Class 2 contributions at the
rate of one third of the contributions that would be payable in respect of
earnings equal to the standard monthly earnings limit.
(7) If the Minister is satisfied –
(a) that the person’s
business is that of a provider of day care accommodation or of being a day
carer and, at the beginning of the concession period, it is a requirement of
the registration of the person as such a provider or day carer that only one
child may be looked after at the accommodation or by the carer; or
(b) that the person’s
business is that of a share fisherman,
the concession granted by the Minister shall be for the person to
pay, during the concession period, reduced rate Class 2 contributions of
the amounts that would be payable in respect of earnings equal to the lower
monthly earnings limit.
(8) The concession period is the period
from –
(a) 1st January, if the
application is made on or before 15th June in the same year;
(b) 1st April, if the
application is made on or before 15th September in the same year;
(c) 1st July, if the
application is made on or before 15th December in the same year; or
(d) 1st October, if the
application is made on or before 15th March in the following year,
to, subject to paragraph (12), the end of the year.
(9) The Minister shall not be required to grant
a concession if the Minister is of the opinion that the person has
intentionally arranged his or her affairs so as to take advantage of the
concession.
(10) A person who has been granted a concession
under this Article in respect of a business may not make an application under
this Article in respect of another business within the period of 5 years
commencing on the day following the concession period.[47]
(11) A person granted a concession shall furnish
any further information and evidence regarding the person’s earnings as the
Minister may require from time to time.
(12) A person granted a concession may, at any
time during the concession period, give notice to the Minister that the person
desires the concession to be terminated and, if such notice is given –
(a) the concession shall end
forthwith; and
(b) the person may not make a
further application under this Article in respect of the concession period or
any part of it.[48]
(13) A person may apply under this Article notwithstanding
that he or she commenced in business before 1st January 2012 but
shall not be granted a concession in respect of any period preceding that date.
(14) In this Article –
(a) references to day care
accommodation or to a day carer, or to registration of such accommodation or
carer, shall be construed in accordance with the Day Care of Children (Jersey) Law 2002;
(b) “share fisherman” means a
master or member of the crew of a fishing boat, or a person who makes or mends
gear appurtenant to a fishing boat or performs services ancillary to or in
connection with the boat, and who is remunerated in respect of that work in
whole or in part by a share of the profits or gross earnings of the fishing
boat.
13E Recalculation of
contributions deferred under Article 13D[49]
(1) A person granted a concession under Article 13D
for the whole or part of a year must produce his or her tax assessment for that
year to the Minister on or before the 15th June in the second year following
that year or, if later, within 28 days of receiving the tax assessment.
(2) The Minister shall then determine the
contributions that, apart from the concession, the person would have been
liable to pay for the year.
(2A) Notwithstanding Article 13B(a), (b) and
(c), where Articles 13 and 13A are applied for the purposes of the
determination described in paragraph (2), the person’s liability shall be
determined by reference to the person’s actual income from self-employment,
earnings from Class 1 employment and total income for the year for which the
concession was granted.[50]
(3) If the person would not have been liable to
pay contributions for the year, the person may elect –
(a) to receive a refund of
the contributions that the person paid for the year, in accordance with
paragraph (4); or
(b) not to receive a refund
of the contributions that the person has paid for the year, in accordance with
paragraph (5).
(4) Where a person makes an election under
paragraph (3)(a) –
(a) the Minister shall refund
the amount of the contributions, after deduction of the amount of any relevant
benefit received by the person; and
(b) the person’s contribution
credits shall be recalculated accordingly.[51]
(5) Where a person makes an election under paragraph (3)(b),
if the person received relevant benefit and the amount of that benefit exceeded
the amount of contributions paid –
(a) the Minister shall notify
the person of the amount of the excess; and
(b) the person shall be
liable to pay the amount of the excess no later than 28 days after being
notified.[52]
(5A) In paragraphs (4)(a) and (5) ‘relevant
benefit’ means so much of the benefit received by the person for the year as
the person’s entitlement to which is calculated by reference to –
(a) in the case described in
paragraph (4)(a), the amount of the contributions being refunded; or
(b) in the case described in
paragraph (5), the amount of the contributions paid.[53]
(6) If the amount of the contributions that the
person has paid for the year exceeds the amount of the contributions that,
apart from the concession, the person would have been liable to pay for the
year –
(a) the Minister shall refund
the excess; and
(b) the person’s contribution
credits shall be recalculated accordingly.
(7) If the amount of the contributions that the
person has paid for the year is less than the amount of the contributions that,
apart from the concession, the person would have been liable to pay for the
year –
(a) the Minister shall notify
the person of the amount of the shortfall;
(b) the person shall be
liable to pay the amount of the shortfall no later than 28 days after
being notified; and
(c) the person’s contribution
credits shall be recalculated, taking into account the shortfall that the
person pays.
(8) Benefits already paid during the year are
not affected by any recalculation of contribution credits under paragraph (4)(b), (6)(b)
or (7)(c).
(9) If a person does not comply with paragraph (1) –
(a) the person shall be
liable to pay the amount of the full rate Class 2 contributions for the
year to which the tax assessment relates, less the amount of the contributions
actually paid for the year;
(b) the Minister shall notify
the person of the amount of the liability; and
(c) the person shall be
liable to pay the amount no later than 28 days after being notified.
14 Home responsibilities
credits[54]
(1) An insured person who is not entitled to
incapacity benefit shall be excepted from liability to pay a contribution under
the Law in respect of any period during which the person has the full-time care
of a child of the family who is below compulsory school age, if –
(a) the insured person has
been ordinarily resident in Jersey for the period of 6 months immediately
preceding each period during which the person is excepted under this Article
from liability;
(b) the person has made
application to the Minister for exception from such liability; and
(c) the Minister has granted
the application.[55]
(2) If the Minister grants the application,
contributions shall be credited to the person in respect of each period during
which the person is excepted by the Minister under this Article.
(3) An exception under this Article may only be
granted in respect of one child who is for the time being below compulsory
school age, and such exceptions shall not be granted for a period or periods
that in the aggregate exceed 10 years.[56]
(4) If the Minister by notice in writing to the
insured person requires the person to do so, the insured person shall from time
to time while the person remains excepted under this Article furnish to the
Minister such information as the Minister requires to confirm that the person
remains eligible to be so excepted.
(5) The insured person shall forthwith notify
the Minister in writing if, by reason of any change in the person’s
circumstances, the person ceases to be eligible to be excepted under this Article.
(6) The Minister may cancel the exception of
the insured person if the person fails to comply with a requirement under paragraph (4).
(7) The Minister shall cancel the exception of
the insured person if –
(a) the person gives notice
to the Minister at any time while the person is so excepted that the person
desires the exception to be cancelled; or
(b) the person ceases to be
eligible to be excepted under this Article.
(8) If the exception of the insured person is
cancelled, the exception shall cease to be in operation from the end of the
current contribution month or from such other date as the Minister may
determine.
(9) For the purposes of this Article, an
insured person who has the care of a child has its full-time care if the
insured person does not undertake any gainful occupation for any period
exceeding –
(a) 15 hours; or
(b) such other length of time
as the Minister may determine,
in any week.
(10) Any contribution credited to a person by
virtue of this Article shall be taken into account only for the purposes of
survivor’s benefit, incapacity pension, old age pension, home carer’s allowance
and death grant.[57]
14A Evidence required for the
purposes of credits[58]
(1) [59]
(2) [60]
(3) [61]
(4) For the purposes of the crediting of
contributions under Article 10, a person shall furnish to the Minister any
evidence required by the Minister in relation thereto before the person attains
pensionable age.
(5) For the purposes of the crediting of
contributions under Article 14, a person shall furnish to the Minister any
evidence required by the Minister in relation thereto before the contributions are
credited.[62]
15 Credited contributions
(1) The amount of a Class 1 contribution
credited to an insured person under any of the foregoing provisions of this
Order for any day shall be one twenty-eighth of the sum of the primary and
secondary Class 1 contributions payable in respect of earnings equal to
the standard monthly earnings limit for the month in which the day falls.[63]
(2) The amount of a Class 2 contribution
credited to an insured person under any of the foregoing provisions of this Order
for any day shall be one twenty-eighth of the amount equal to the Class 2
contribution that would have been due from the person for the month in which
the day falls.[64]
(3) [65]
(4) Notwithstanding the foregoing provisions of
this Order, contributions shall not be credited for any month in respect of a
Class 1 insured person whose earnings for that month equal or exceed the
standard monthly earnings limit. [66]
(5) Where the contributions paid in respect of
a Class 1 insured person for any month are less than the amount described
in paragraph (1) for that month, contributions credited shall be limited
to the shortfall between the contributions paid and the amount described in
paragraph (1).[67]
16 Class 2 insured persons nearing pensionable age[68]
(1) An insured person who is liable for Class 2
contributions and who, having attained the Class 2 contribution exception
age specified in his or her case by paragraph 4 of Schedule 1AA to
the Law retires from gainful occupation, shall be excepted from liability to
pay contributions under the Law to the extent and subject to the conditions set
out below, namely –
(a) a person desiring to be
so excepted shall make application to the Minister for that purpose in such
form as may for the time being be approved by the Minister and, if the
application is granted, shall be excepted from liability to pay contributions
under the Law in respect of the period beginning with the beginning of the
month following the month in which the application is made and, subject to
paragraph (3), ending at the time the person attains pensionable age:
Provided that a person who is entitled to be excepted from liability
to pay contributions under the provisions of Article 12 shall not be
entitled to claim exception under the provisions of this Article;
(b) a person to whom an
exception has been granted may give notice to the Minister at any time while it
is in force that the person desires the exception to be cancelled, and if such
notice is so given, the exception shall cease to be in force from the beginning
of the month following that in which notice of cancellation is given. [69]
(2) Notwithstanding anything in this Order to
the contrary, a person who has been excepted from liability to pay
contributions under the provisions of this Article shall not be entitled to pay
contributions in respect of any period during which the person was so excepted.
(3) If a person granted an exception under this
Article subsequently commences gainful occupation, the exception shall end at
the end of the month in which the person commences gainful occupation.[70]
(4) A person who ceases to be entitled to an
exception under this Article shall notify the Minister before the end of the
month in which the change in the person’s circumstances occurs or, if later,
within 2 working days after that change occurs.[71]
(5) A person who ceases to be entitled to an
exception under this Article by reason of commencing employment shall forthwith
notify his or her employer that the exception has ended.[72]
PART 2
MISCELLANEOUS PROVISIONS RELATING TO CONTRIBUTIONS
17 Disposal of contributions
improperly paid
The Minister may treat contributions paid in error as paid on
account of contributions properly payable.
18 Return of amount paid in
error[73]
(1) This Article applies to an amount paid to
the Minister in the erroneous belief that it was a contribution payable under
the Law.
(2) The Minister shall, subject to paragraphs (3),
return the amount to the person who paid it to the Minister.
(3) The Minister shall deduct from the amount
paid to it –
(a) any amount it has treated
under Article 17 as paid on account of other contributions; and
(b) any amount it has paid by
way of benefit in the belief that the amount paid under this Article was a
contribution.
19 Return of contributions
in excess of required amount
(1) Subject to paragraph (2), where the
primary Class 1 contributions paid to the Minister in respect of the
monthly earnings of a Class 1 insured person exceed the amount required by
Schedule 1A to the Law, the Minister shall repay the excess to that
insured person.[74]
(2) The Minister may treat any excess of
contributions as paid on account, or in satisfaction, of unpaid contributions,
and shall not be required to make any repayment under paragraph (1) where
the excess is less than one pound.
20 Recovery of contributions
(1) In any case where an employer or an insured
person has been convicted of the offence under Article 36(1) of the Law of
failing to pay a contribution the person shall be liable to pay to the Social
Security Fund a sum equal to the amount which the person failed to pay.
(2) Where an employer or an insured person is
charged with such offence as is mentioned in paragraph (1) of this Article
and an order is made under Article 2(1) of the Loi (1937) sur l’atténuation des peines et sur la
mise en liberté surveillée, the foregoing provisions of this Article shall apply as if the
making of the order were a conviction.
(3) Any sum ordered to be paid to the Social
Security Fund under this Article shall be recoverable as a penalty.
(4) Any sum paid by an employer under this Article
shall be treated as a payment in satisfaction of the unpaid contributions and
no part thereof shall be recoverable by the employer from the insured person.
(5) If the employer, being a body corporate,
fails to pay to the Social Security Fund any sum which the employer has been
ordered to pay under this Article, that sum, or such part thereof as remains
unpaid, shall be a debt due to the Social Security Fund jointly and severally
by any directors of the body corporate who knew, or could reasonably be
expected to have known, of the failure to pay the contribution or contributions
in question.
(6) Nothing in this Article shall be construed
as preventing the Minister from recovering any sums due to the Social Security
Fund by means of civil proceedings.
PART 3
PROVISIONS RELATING TO CONTRIBUTIONS WHICH ARE NOT PAID OR WHICH ARE
PAID AFTER THE DUE DATE
21 Treatment for the purpose
of any benefit of late paid or unpaid contributions, without consent,
connivance or negligence of the employed person
(1) Where a contribution under the Law payable
by an employer on behalf of an insured person is paid after the due date or is
not paid, and the delay or failure in making payment thereof is shown to the
satisfaction of the Minister not to have been with the consent or connivance
of, or attributable to any negligence on the part of, the insured person, the
contribution shall, for the purpose of any right to benefit, be treated as paid
on the due date.
(2) Article 22 shall, in its application
to a contribution under the Law payable by an employer on behalf of an insured person,
have effect subject to the provisions of paragraph (1) of this Article.[75]
22 Treatment for purposes of
survivor’s benefit and pensions of contributions paid late[76]
(1) Subject to paragraphs (1A) to (1C),
for the purpose of any right to survivor’s benefit or to an incapacity pension
or old age pension, a contribution under the Law paid after the due date shall
be treated as paid on the due date if it is paid –
(a) not later than 12 months
after the relevant time; and
(b) at the rate applicable at
the time of payment,
and any other contribution paid after the due date shall be treated
as not paid.[77]
(1A) If the contribution is paid after the end of
the year following the year in which the period to which the contribution
relates fell, the amount of the contribution due shall be determined in
accordance with paragraph (1B) or (1C).[78]
(1B) In the case of a person who, for the period
to which the contribution relates, was liable to pay full rate Class 2
contributions (or, where the period preceded 1st October 2011, flat rate
Class 2 contributions), the amount of the contribution shall be whichever is
the greater of –
(a) the contribution
applicable for the period; and
(b) the contribution applicable
for the month in which the payment is made. [79]
(1BA) In paragraph (1B) –
(a) the contribution
applicable for the period is –
(i) where the period preceded 1st
October 2011, the flat rate Class 2 contributions applicable for the
period, or
(ii) where the period
commenced on or after 1st October 2011, the full rate Class 2
contributions applicable for the period;
(b) the contribution
applicable for the month in which the payment is made is –
(i) where the payment is made in respect of a
period that preceded 1st January 2012, so much of the full rate Class 2
contribution applicable for the month in which the payment is made as is
calculated by reference to the standard monthly earnings limit, or
(ii) where the payment is
made in respect of a period that commenced on or after 1st January 2012,
the full rate Class 2 contribution applicable for the month in which the
payment is made.[80]
(1C) In the case of a person who, for the period
to which the contribution relates, was liable to pay reduced rate contributions
(or, where the period preceded 1st October 2011, earnings related Class 2
contributions), if the standard monthly earnings limit applicable in the
person’s case on the date the contribution is paid is greater than the standard
monthly earnings limit applicable in the person’s case for the period to which
the contribution relates, the amount of the contribution shall be increased by
the percentage ‘C’ that is the product of the following formula –
A - B x 100 = C%
B
Where –
A is –
(a) where the period to which
the contribution relates precedes 1st October 2011, the earnings limit
prescribed for the period under Article 5(1) of the Law as it was then in
force;
(b) where the period to which
the contribution relates commences on or after 1st October 2011, the
standard monthly earnings limit applicable in the person’s case on the date the
contribution is paid;
B is the standard monthly earnings limit applicable in the person’s
case for the period to which the contribution relates.[81]
(2) In this Article, the expression “relevant
time” –
(a) when used in reference to
survivor’s benefit or an old age pension, has the same meaning as in
paragraph 6(2)(b) of Schedule 2 to the Law; and
(b) when used in reference to
an incapacity pension, means the end of the relevant quarter as defined in paragraph 3(2)
of that Schedule.
23 Treatment of late paid
class 2 contributions as not having been paid[82]
For the purpose of determining the quarterly contribution factor of
a claimant for benefit under any of paragraphs 1(1)(b), 2(1)(b) and 4(1)(b) of Schedule 2
to the Law, any Class 2 contributions paid after the time prescribed in Article 11(1)
of the Social Security (Collection of Contributions) (Jersey) Order 2001
or, as the case may be, that time as extended by the Minister under paragraph (3)
of that Article shall be treated as not having been paid in respect of the
relevant quarter.[83]
PART 4
PROVISIONS RELATING TO CONTRIBUTIONS WHICH PERSONS ARE ENTITLED, BUT
NOT LIABLE, TO PAY
24 Treatment for the purpose
of any benefit of contributions which persons are entitled, but not liable, to
pay
(1) Subject to the following provisions of this
Article, the provisions of Article 22 shall apply to contributions which
persons are entitled, but not liable, to pay as if each such contribution were
due to be paid in the last day in the contribution month in respect of which it
is paid.
(2) For the purposes of any right to survivor’s
benefit or to an incapacity pension or old age pension, a contribution which a person
is entitled, but not liable, to pay in accordance with the provisions of Article 8,
or of Article 10 of this Order, or of Article 4 of the Social Security (Residence and Persons Abroad)
(Jersey) Order 1974, shall, if it is paid before the relevant time and within the
period within which it may be paid under any of the said provisions, be treated
as paid on the due date.[84]
(3) In paragraph (2) of this Article, the
expression the “relevant time” has the same meaning as in paragraph 6(2) of Schedule 2
to the Law.[85]
25 Payments after death
If a person dies, any contributions which, immediately before the person’s
death, the person was entitled, but not liable to pay, if the person so
desired, may be paid notwithstanding the person’s death, subject, however, to
the same provisions with respect to the time for payment as were applicable to
that person.
PART 5
GENERAL
26 Offence[86]
A person who fails to comply with Article 13E(1) or 14A(4) or
(5) is guilty of an offence and liable to a fine of level 3 on the
standard scale.
27 Citation
This Order may be cited as the Social Security (Contributions)
(Jersey) Order 1975.