Session 2013 - 14
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1381

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Friday 6 December 2013

 

Consideration of Bill


 

National Insurance Contributions Bill


 

new clauses

 

Reduction of secondary Class 1 contributions for certain age groups

 

Mr Chancellor of the Exchequer

 

NC3

 

To move the following Clause:—

 

‘(1)    

SSCBA 1992 is amended as follows.

 

(2)    

In section 9 (calculation of secondary Class 1 contributions)—

 

(a)    

in subsection (1) for “the secondary percentage” substitute “the relevant

 

percentage”, and

 

(b)    

after subsection (1) insert—

 

“(1A)    

For the purposes of subsection (1) “the relevant percentage” is—

 

(a)    

if section 9A below applies to the earnings, the age-

 

related secondary percentage;

 

(b)    

otherwise, the secondary percentage.”

 

(3)    

After section 9 insert—

 

“9A    

The age-related secondary percentage

 

(1)    

Where a secondary Class 1 contribution is payable as mentioned in

 

section 6(1)(b) above, this section applies to the earnings paid in the tax

 

week, in respect of the employment in question, if the earner falls within

 

an age group specified in column 1 of the table in subsection (3).

 

(2)    

For the purposes of section 9(1A)(a) above, the age-related secondary

 

percentage is the percentage for the earner’s age group specified in

 

column 2 of the table.

 

(3)    

Here is the table—


 
 

Notices of Amendments: 6 December 2013                  

1382

 

National Insurance Contributions Bill, continued

 
 

Age group

Age-related

 
  

secondary

 
  

percentage

 
 

Under 21

0%

 
 

(4)    

The Treasury may by regulations amend the table—

 

(a)    

so as to add an age group in column 1 and to specify the

 

percentage in column 2 for that age group;

 

(b)    

so as to reduce (or further reduce) the percentage specified in

 

column 2 for an age group already specified in column 1

 

(whether for the whole of the age group or only part of it).

 

(5)    

A percentage specified under subsection (4)(a) must be lower than the

 

secondary percentage.

 

(6)    

For the purposes of this Act a person is still to be regarded as being liable

 

to pay a secondary Class 1 contribution even though the amount of the

 

contribution is £0 because the age-related secondary percentage is 0%.

 

(7)    

The Treasury may by regulations provide that, in relation to an age group

 

specified in the table, there is to be for every tax year an upper secondary

 

threshold for secondary Class 1 contributions.

 

    

That threshold is to be the amount specified for that year by regulations

 

made by the Treasury.

 

(8)    

Subsections (4) and (5) of section 5 above (which confer power to

 

prescribe an equivalent of a secondary threshold in relation to earners

 

paid otherwise than weekly), and subsection (6) of that section as it

 

applies for the purposes of those subsections, apply for the purposes of

 

an upper secondary threshold in relation to an age group as they apply for

 

the purposes of a secondary threshold.

 

(9)    

Where—

 

(a)    

a secondary Class 1 contribution is payable as mentioned in

 

section 6(1)(b) above,

 

(b)    

the earner falls within an age group in relation to which provision

 

has been made under subsection (7), and

 

(c)    

the earnings paid in the tax week, in respect of the employment

 

in question, exceed the current upper secondary threshold (or the

 

prescribed equivalent) in relation to the age group,

 

    

this section is not to apply to the earnings so far as they exceed that

 

threshold (or the prescribed equivalent); and for the purposes of section

 

9(1) above the relevant percentage in respect of the earnings so far as they

 

exceed that threshold (or the prescribed equivalent) is, accordingly, to be

 

the secondary percentage.

 

(10)    

In subsections (7) to (9) references to an age group include a part of an

 

age group.”

 

(4)    

In section 122(1) (interpretation of Parts 1 to 6), at the appropriate place insert—

 

““age-related secondary percentage” is to be construed in accordance with

 

section 9A(2) above;”.

 

(5)    

In section 176(1)(a) (parliamentary control: instruments subject to affirmative

 

procedure) after “section 4C;” insert—


 
 

Notices of Amendments: 6 December 2013                  

1383

 

National Insurance Contributions Bill, continued

 
 

    

“section 9A(7);”.

 

(6)    

SSCB(NI)A 1992 is amended as follows.

 

(7)    

In section 9 (calculation of secondary Class 1 contributions)—

 

(a)    

in subsection (1) for “the secondary percentage” substitute “the relevant

 

percentage”, and

 

(b)    

after subsection (1) insert—

 

“(1A)    

For the purposes of subsection (1) “the relevant percentage” is—

 

(a)    

if section 9A below applies to the earnings, the age-

 

related secondary percentage;

 

(b)    

otherwise, the secondary percentage.”

 

(8)    

After section 9 insert—

 

“9A    

The age-related secondary percentage

 

(1)    

Where a secondary Class 1 contribution is payable as mentioned in

 

section 6(1)(b) above, this section applies to the earnings paid in the tax

 

week, in respect of the employment in question, if the earner falls within

 

an age group specified in column 1 of the table in subsection (3).

 

(2)    

For the purposes of section 9(1A)(a) above, the age-related secondary

 

percentage is the percentage for the earner’s age group specified in

 

column 2 of the table.

 

(3)    

Here is the table—

 

Age group

Age-related

 
  

secondary

 
  

percentage

 
 

Under 21

0%

 
 

(4)    

The Treasury may by regulations amend the table—

 

(a)    

so as to add an age group in column 1 and to specify the

 

percentage in column 2 for that age group;

 

(b)    

so as to reduce (or further reduce) the percentage specified in

 

column 2 for an age group already specified in column 1

 

(whether for the whole of the age group or only part of it).

 

(5)    

A percentage specified under subsection (4)(a) must be lower than the

 

secondary percentage.

 

(6)    

For the purposes of this Act a person is still to be regarded as being liable

 

to pay a secondary Class 1 contribution even though the amount of the

 

contribution is £0 because the age-related secondary percentage is 0%.

 

(7)    

The Treasury may by regulations provide that, in relation to an age group

 

specified in the table, there is to be for every tax year an upper secondary

 

threshold for secondary Class 1 contributions.

 

    

That threshold is to be the amount specified for that year by regulations

 

made by the Treasury.

 

(8)    

Subsections (4) and (5) of section 5 above (which confer power to

 

prescribe an equivalent of a secondary threshold in relation to earners

 

paid otherwise than weekly), and subsection (6) of that section as it


 
 

Notices of Amendments: 6 December 2013                  

1384

 

National Insurance Contributions Bill, continued

 
 

applies for the purposes of those subsections, apply for the purposes of

 

an upper secondary threshold in relation to an age group as they apply for

 

the purposes of a secondary threshold.

 

(9)    

Where—

 

(a)    

a secondary Class 1 contribution is payable as mentioned in

 

section 6(1)(b) above,

 

(b)    

the earner falls within an age group in relation to which provision

 

has been made under subsection (7), and

 

(c)    

the earnings paid in the tax week, in respect of the employment

 

in question, exceed the current upper secondary threshold (or the

 

prescribed equivalent) in relation to the age group,

 

    

this section is not to apply to the earnings so far as they exceed that

 

threshold (or the prescribed equivalent); and for the purposes of section

 

9(1) above the relevant percentage in respect of the earnings so far as they

 

exceed that threshold (or the prescribed equivalent) is, accordingly, to be

 

the secondary percentage.

 

(10)    

In subsections (7) to (9) references to an age group include a part of an

 

age group.”

 

(9)    

In section 121(1) (interpretation of Parts 1 to 6), at the appropriate place insert—

 

““age-related secondary percentage” is to be construed in accordance with

 

section 9A(2) above;”.

 

(10)    

In section 172(11A) (parliamentary control: instruments subject to affirmative

 

procedure) after “4C,” insert “9A(7),”.

 

(11)    

The following come into force at the end of the period of 2 months beginning with

 

the day on which this Act is passed—

 

(a)    

any power conferred on the Treasury by virtue of this section to make

 

regulations, and

 

(b)    

the amendments made by subsections (5) and (10).

 

(12)    

So far as not already brought into force by subsection (11), the amendments made

 

by this section come into force on 6 April 2015.’.

 


 

Class 4 contributions: partnerships

 

Mr Chancellor of the Exchequer

 

NC4

 

To move the following Clause:—

 

‘(1)    

SSCBA 1992 is amended as follows.

 

(2)    

After section 18 insert—

 

“18A  

Class 4 contributions: partnerships

 

(1)    

The Treasury may by regulations—

 

(a)    

modify the way in which liabilities for Class 4 contributions of a

 

partner in a firm are determined, or

 

(b)    

otherwise modify the law relating to Class 4 contributions,

 

    

as they consider appropriate to take account of the passing or making of

 

a provision of the Income Tax Acts relating to firms or partners in firms.


 
 

Notices of Amendments: 6 December 2013                  

1385

 

National Insurance Contributions Bill, continued

 
 

(2)    

“Firm” has the same meaning as in the Income Tax (Trading and Other

 

Income) Act 2005 (and includes a limited liability partnership in relation

 

to which section 863(1) of that Act applies); and “partner” is to be read

 

accordingly and includes a former partner.

 

(3)    

Regulations under this section may have retrospective effect; but they

 

may not have effect before the beginning of the tax year in which they are

 

made.”

 

(3)    

In section 176(1)(a) (parliamentary control: instruments subject to affirmative

 

procedure), after “section 18;” insert—

 

    

“section 18A;”.

 

(4)    

SSCB(NI)A 1992 is amended as follows.

 

(5)    

After section 18 insert—

 

“18A  

Class 4 contributions: partnerships

 

(1)    

The Treasury may by regulations—

 

(a)    

modify the way in which liabilities for Class 4 contributions of a

 

partner in a firm are determined, or

 

(b)    

otherwise modify the law relating to Class 4 contributions,

 

    

as they consider appropriate to take account of the passing or making of

 

a provision of the Income Tax Acts relating to firms or partners in firms.

 

(2)    

“Firm” has the same meaning as in the Income Tax (Trading and Other

 

Income) Act 2005 (and includes a limited liability partnership in relation

 

to which section 863(1) of that Act applies); and “partner” is to be read

 

accordingly and includes a former partner.

 

(3)    

Regulations under this section may have retrospective effect; but they

 

may not have effect before the beginning of the tax year in which they are

 

made.”

 

(6)    

In section 172(11A) (parliamentary control: instruments subject to affirmative

 

procedure), after “18,” insert “18A,”.

 

(7)    

The amendments made by this section come into force at the end of the period of

 

2 months beginning with the day on which this Act is passed.’.

 


 

Limited liability partnerships

 

Mr Chancellor of the Exchequer

 

NC5

 

To move the following Clause:—

 

‘(1)    

SSCBA 1992 is amended as follows.

 

(2)    

After section 4A insert—

 

“4AA  

Limited liability partnerships

 

(1)    

The Treasury may, for the purposes of this Act, by regulations—

 

(a)    

provide that, in prescribed circumstances—

 

(i)    

a person (“E”) is to be treated as employed in employed

 

earner’s employment by a limited liability partnership

 

(including where E is a member of the partnership), and


 
 

Notices of Amendments: 6 December 2013                  

1386

 

National Insurance Contributions Bill, continued

 
 

(ii)    

the limited liability partnership is to be treated as the

 

secondary contributor in relation to any payment of

 

earnings to or for the benefit of E as the employed

 

earner;

 

(b)    

prescribe how earnings in respect of E’s employed earner

 

employment with the limited liability partnership are to be

 

determined (including what constitutes such earnings);

 

(c)    

provide that such earnings are to be treated as being paid to or for

 

the benefit of E at prescribed times.

 

(2)    

Regulations under subsection (1) may modify the definition of

 

“employee” or “employer” in section 163, 171, 171ZJ or 171ZS below as

 

the Treasury consider appropriate to take account of any provision falling

 

within subsection (1)(a) to (c).

 

(3)    

If—

 

(a)    

a provision of the Income Tax Acts relating to limited liability

 

partnerships or members of limited liability partnerships is

 

passed or made, and

 

(b)    

in consequence, the Treasury consider it appropriate for

 

provision to be made for the purpose of assimilating to any extent

 

the law relating to income tax and the law relating to

 

contributions under this Part,

 

    

the Treasury may by regulations make that provision.

 

(4)    

The provision that may be made under subsection (3) includes provision

 

modifying any provision made by or under this Act.

 

(5)    

Regulations under this section are to be made with the concurrence of the

 

Secretary of State.

 

(6)    

Section 4(4) of the Limited Liability Partnerships Act 2000 does not limit

 

the provision that may be made by regulations under this section.”

 

(3)    

In section 4B (power to make retrospective provision in consequence of

 

retrospective tax legislation), in subsection (3), after paragraph (c) insert—

 

“(d)    

section 4AA (power to make provision in relation to limited

 

liability partnerships)”.

 

(4)    

In section 10 (Class 1A contributions: benefits in kind etc), at the end, insert—

 

“(11)    

The Treasury may by regulations modify the law relating to Class 1A

 

contributions in the case of an employed earner’s employment which is

 

treated as existing by virtue of regulations under section 4AA.”

 

(5)    

SSCB(NI)A 1992 is amended as follows.

 

(6)    

After section 4A insert—

 

“4AA  

Limited liability partnerships

 

(1)    

The Treasury may, for the purposes of this Act, by regulations—

 

(a)    

provide that, in prescribed circumstances—

 

(i)    

a person (“E”) is to be treated as employed in employed

 

earner’s employment by a limited liability partnership

 

(including where E is a member of the partnership), and

 

(ii)    

the limited liability partnership is to be treated as the

 

secondary contributor in relation to any payment of

 

earnings to or for the benefit of E as the employed

 

earner;


 
 

Notices of Amendments: 6 December 2013                  

1387

 

National Insurance Contributions Bill, continued

 
 

(b)    

prescribe how earnings in respect of E’s employed earner

 

employment with the limited liability partnership are to be

 

determined (including what constitutes such earnings);

 

(c)    

provide that such earnings are to be treated as being paid to or for

 

the benefit of E at prescribed times.

 

(2)    

Regulations under subsection (1) may modify the definition of

 

“employee” or “employer” in section 159, 167, 167ZJ or 167ZS below as

 

the Treasury consider appropriate to take account of any provision falling

 

within subsection (1)(a) to (c).

 

(3)    

If—

 

(a)    

a provision of the Income Tax Acts relating to limited liability

 

partnerships or members of limited liability partnerships is

 

passed or made, and

 

(b)    

in consequence, the Treasury consider it appropriate for

 

provision to be made for the purpose of assimilating to any extent

 

the law relating to income tax and the law relating to

 

contributions under this Part,

 

    

the Treasury may by regulations make that provision.

 

(4)    

The provision that may be made under subsection (3) includes provision

 

modifying any provision made by or under this Act.

 

(5)    

Regulations under this section are to be made with the concurrence of the

 

Department.

 

(6)    

Section 4(4) of the Limited Liability Partnerships Act 2000 does not limit

 

the provision that may be made by regulations under this section.”

 

(7)    

In section 4B (power to make retrospective provision in consequence of

 

retrospective tax legislation), in subsection (3), after paragraph (c) insert—

 

“(d)    

section 4AA (power to make provision in relation to limited

 

liability partnerships)”.

 

(8)    

In section 10 (Class 1A contributions: benefits in kind etc), at the end, insert—

 

“(11)    

The Treasury may by regulations modify the law relating to Class 1A

 

contributions in the case of an employed earner’s employment which is

 

treated as existing by virtue of regulations under section 4AA.”’.

 


 

Post implementation review

 

Shabana Mahmood

 

NC1

 

To move the following Clause:—

 

‘(1)    

HMRC must, after one year, prepare a post implementation review of the

 

employment allowance which the Minister shall lay before Parliament.

 

(2)    

The review must consider—

 

(a)    

what impact the employment allowance has had on the number of jobs;

 

(b)    

what impact the employment allowance has had on wage levels;

 

(c)    

overall take-up of the employment allowance;


 
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