New amendments laid in SI 2003/193 to the Social Security (Contributions) Regulations 2001 come into force on 6 April this year. These stem from the Government's decision in the National Insurance Contributions Act 2002 to impose an additional 1% charge in respect of NICs, specifically to raise extra money for the NHS. The fact that this 1% applies to all earnings, not just band earnings, creates additional complications for working out NIC liabilities . For example, the (relatively) simple present statement of 7 lines about the annual maximum in NICs payable by an individual is replaced by a new Regulation 21 occupying a whole page.

Additionally, SI 2003/193 Reg 5 confirms the LEL and UEL for 2003/04 as £77 and £595 respectively. The primary threshold remains unchanged at £89.

The business does not end there, however. Further consequences of the additional 1% NIC charge are addressed in The Social Security (Contributions) (Amendment No. 2) Regulations 2003, currently in draft, which in particular will raise the married women and widows reduced rate from 3.85% to 4.85%.