Class 1 structural overview from 6 April 2003: structural changes: the Class 1 and 2 annual maximum: married women and widows with reduced rate elections
Regulation 21(3) SS(C)R 2001
NIM01251 explains the calculation of the Class 1 and 2 annual maximum for employees who have more than one employment.
The calculation provides an annual maximum for all earners who have more than one employment but it does not take account of those employees who, because they hold a valid reduced rate election, will pay main primary contributions at a reduced main rate.
To ensure that these earners are catered for, regulation 21(3) provides that for the purposes of determining an earner’s liability under the maximum calculation, a person who pays an amount of primary Class 1 NICs at a rate of less than 12% because they hold a valid reduced rate election shall be treated as having paid contributions at 12%.