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 parental 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 parental 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) But
paragraph (1) does not except a person from liability to pay a
contribution for any month if –
(a) in
that month, the person undertakes paid work outside the prison or other place
of detention as part of a programme of rehabilitation; and
(b) the
amount of the person’s earnings in that month is equal to or exceeds the
Class 1 minimum earnings threshold.[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 paragraph (1A), 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 a
contribution is paid after the end of the year after the year in which the
relevant period fell, the amount of the contribution due is whichever is
the greater of –
(a) the
amount of the contribution applicable for the relevant period; or
(b) the
amount of the contribution applicable for the relevant period increased by the
percentage ‘C’ that is the product of the following
formula –
A - B x 100 = C%
B
Where –
A is the standard monthly earnings limit applicable in the
person’s case on the date the contribution is paid;
B is –
(i) where the period
to which the contribution relates precedes 1st October 2011, the
earnings limit prescribed for that period under Article 5(1) of the Law as
it was then in force; or
(ii) in
any other case, the standard monthly earnings limit applicable in the
person’s case for the relevant period.[78]
(1B) [79]
(1BA) [80]
(1C) [81]
(2) In
this Article –
(a) “relevant
time” –
(i) 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
(ii) when
used in reference to an incapacity pension, means the end of the relevant
quarter as defined in paragraph 3(2) of that Schedule;
(b) “relevant
period” means the period to which the contribution relates.[82]
23 Treatment
of late paid class 2 contributions as not having been paid[83]
For the purpose of determining the quarterly contribution factor of
a claimant for benefit under any of paragraphs 1(1)(b), 2(1)(b), 3A(1)(b) and 4(1)(b)
of Schedule 2 to the Law, any Class 2 contributions paid after the time
prescribed in Article 6(1) of the Social Security (Collection of
Class 1 and Class 2 Contributions) Order 2013 or, as the case may be,
that time as extended by the Minister under paragraph (2) of that Article
shall be treated as not having been paid in respect of the relevant quarter.[84]
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.[85]
(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.[86]
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[87]
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.