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Lords amendments to the

National Insurance Contributions Bill

[The page and line references are to HL Bill 55, the bill as first printed for the Lords.]

Before Clause 1

1

Insert the following new Clause—

 

“Secondary Class 1 contributions: apprentices under 25

 

Zero-rate secondary Class 1 contributions for apprentices under 25

 

(1)    

SSCBA 1992 is amended as follows.

 

(2)    

In section 9 (calculation of secondary Class 1 contributions), in subsection

 

(1A), after paragraph (a) insert—

 

“(aa)    

if section 9B below (zero-rate secondary Class 1

 

contributions for certain apprentices) applies to the

 

earnings, 0%;”.

 

(3)    

In section 9A (the age-related secondary percentage), after subsection (1)

 

insert—

 

“(1A)    

But this section does not apply to those earnings so far as section 9B

 

below (zero-rate secondary Class 1 contributions for certain

 

apprentices) applies to them.”

 

(4)    

After section 9A insert—

 

“9B    

Zero-rate secondary Class 1 contributions for certain apprentices

 

(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 is

 

a relevant apprentice in relation to that employment.

 

(2)    

An earner is a “relevant apprentice”, in relation to an employment,

 

if the earner—

 

(a)    

is aged under 25, and

 
 
Bill 16155/4
 
 

2

 
 

(b)    

is employed, in the employment, as an apprentice.

 

(3)    

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

 

liable to pay a secondary Class 1 contribution even if the amount of

 

the contribution is £0 because this section applies to the earnings in

 

question.

 

(4)    

The Treasury may by regulations provide that, in relation to

 

relevant apprentices, 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.

 

(5)    

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

 

relevant apprentices as they apply for the purposes of a secondary

 

threshold.

 

(6)    

Subsection (7) applies if—

 

(a)    

a secondary Class 1 contribution is payable as mentioned in

 

section 6(1)(b) above,

 

(b)    

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 relevant apprentices, and

 

(c)    

the earner is a relevant apprentice in relation to the

 

employment.

 

(7)    

This section does not apply to those earnings so far as they exceed

 

that threshold (or the prescribed equivalent) (“the excess earnings”)

 

and, accordingly, for the purposes of section 9(1) above the relevant

 

percentage in respect of the excess earnings is the secondary

 

percentage.

 

(8)    

But the Treasury may by regulations modify the effect of subsection

 

(7) in a case in which the earner falls within an age group specified

 

in column 1 of the table in section 9A(3) above.

 

(9)    

In subsection (2)(b) “apprentice” has such meaning as the Treasury

 

may prescribe.

 

(10)    

The Treasury may by regulations amend subsection (2)(a) so as to

 

alter the age that an earner must be in order to be a relevant

 

apprentice (and regulations under this subsection may have the

 

effect of allowing anyone who is of an age at which secondary Class

 

1 contributions are payable to be a relevant apprentice).”

 

(5)    

In section 176(1)(a) (regulations subject to affirmative procedure), after

 

“section 9A(7);” insert—

 

“section 9B(4), (8) or (10);”.

 

(6)    

SSCB(NI)A 1992 is amended as follows.

 

(7)    

In section 9 (calculation of secondary Class 1 contributions), in subsection

 

(1A), after paragraph (a) insert—

 
 

3

 
 

“(aa)    

if section 9B below (zero-rate secondary Class 1

 

contributions for certain apprentices) applies to the

 

earnings, 0%;”.

 

(8)    

In section 9A (the age-related secondary percentage), after subsection (1)

 

insert—

 

“(1A)    

But this section does not apply to those earnings so far as section 9B

 

below (zero-rate secondary Class 1 contributions for certain

 

apprentices) applies to them.”

 

(9)    

After section 9A insert—

 

“9B    

Zero-rate secondary Class 1 contributions for certain apprentices

 

(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 is

 

a relevant apprentice in relation to that employment.

 

(2)    

An earner is a “relevant apprentice”, in relation to an employment,

 

if the earner—

 

(a)    

is aged under 25, and

 

(b)    

is employed, in the employment, as an apprentice.

 

(3)    

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

 

liable to pay a secondary Class 1 contribution even if the amount of

 

the contribution is £0 because this section applies to the earnings in

 

question.

 

(4)    

The Treasury may by regulations provide that, in relation to

 

relevant apprentices, 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.

 

(5)    

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

 

relevant apprentices as they apply for the purposes of a secondary

 

threshold.

 

(6)    

Subsection (7) applies if—

 

(a)    

a secondary Class 1 contribution is payable as mentioned in

 

section 6(1)(b) above,

 

(b)    

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 relevant apprentices, and

 

(c)    

the earner is a relevant apprentice in relation to the

 

employment.

 

(7)    

This section does not apply to those earnings so far as they exceed

 

that threshold (or the prescribed equivalent) (“the excess earnings”)

 

and, accordingly, for the purposes of section 9(1) above the relevant

 

percentage in respect of the excess earnings is the secondary

 

percentage.

 
 

4

 
 

(8)    

But the Treasury may by regulations modify the effect of subsection

 

(7) in a case in which the earner falls within an age group specified

 

in column 1 of the table in section 9A(3) above.

 

(9)    

In subsection (2)(b) “apprentice” has such meaning as the Treasury

 

may prescribe.

 

(10)    

The Treasury may by regulations amend subsection (2)(a) so as to

 

alter the age that an earner must be in order to be a relevant

 

apprentice (and regulations under this subsection may have the

 

effect of allowing anyone who is of an age at which secondary Class

 

1 contributions are payable to be a relevant apprentice).”

 

(10)    

In section 172(11A) (regulations subject to affirmative procedure), after

 

“9A(7),” insert “section 9B(4), (8) or (10),”.

 

(11)    

The amendments made by this section come into force—

 

(a)    

for the purposes of making regulations under section 9B of SSCBA

 

1992 or section 9B of SSCB(NI)A 1992, at the end of the period of 2

 

months beginning with the day on which this Act is passed, and

 

(b)    

for remaining purposes, on 6 April 2016.”

Clause 2

2

Page 1, line 13, at end insert—

 

“(5A)    

A statutory instrument containing (with or without other provision)

 

regulations under this section that amend or repeal a provision of an Act

 

may not be made unless a draft of the instrument has been laid before, and

 

approved by a resolution of, each House of Parliament.”

3

Page 1, line 14, after “section” insert “that does not have to be approved in draft

 

under subsection (5A)”

Schedule 1

4

Page 9, line 33, at end insert—

 

“( )    

Schedule 24 to the Finance Act 2007 (penalties for

 

errors);”

5

Page 12, line 33, at end insert—

 

“( )    

Schedule 24 to the Finance Act 2007 (penalties for

 

errors);”

 
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Revised 22 January 2015