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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Social Security (Collection of Class 1 and Class 2 Contributions) (Amendment No. 2) (Jersey) Order 2022

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

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  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 30 March 2022

Decision Reference:  MD-SOSEC-2022-232

Public

Subject: Social Security (Collection of Class 1 and Class 2 Contributions) (Amendment No. 2) (Jersey) Order 2022

 

Report Title: Social Security (Collection of Class 1 and Class 2 Contributions) (Amendment No. 2) (Jersey) Order 2022

Public

Decision(s):

The Minister made the Social Security (Collection of Class 1 and Class 2 Contributions) (Amendment No. 2) (Jersey) Order 2022.  The Order modified the frequency, from quarterly to monthly, in respect of payment of Social Security contributions from those employers and Class 2 people who were not currently paying them monthly. The total amount of contributions paid would remain the same.

Reason for Decision(s):

The decision to modify the frequency of payment of Social Security contributions, for those employers and Class 2 people who were not already paying monthly, was part of a wider government programme to modernise and improve the collection of revenues. This complemented several other changes that had been made over the last few years, including the "Combined Employer Return" and the minimum earnings threshold. Together, these changes would make it easier for customers to report income and pay taxes, and more efficient for the government to administer taxes and contributions.

Resource Implications: This change brings forward the timing of payment for some Social Security contributions paid by employers and class 2 people who are not currently paying them monthly.  It does not affect the amount of contributions paid by employers, employees and class 2 people.     This change will increase cashflow into the Social Security Fund as some contributions will be received one or two months earlier than before.  There is an estimated £90m of class 1 contributions and £15m of class 2 contributions that will be required to be paid monthly.  Approximately £35m (1/3) could be received 2 months earlier and £35m could be received 1 month earlier than at present.  The remaining £35m could be received at a similar time as this would have the same due date.  We estimate there will be an increase in investment income from this of approximately £50,000 per year.

 

Action Required: Department to take necessary action.

Signature:

 

 

Signed By: Minister for Social Security

Date Signed:

 

Date of Decision (If different from Date Signed):

 

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