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National Insurance Contributions Bill |
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[The page and line references are to HL Bill 55, the bill as first printed for the Lords.] |
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1 | Insert the following new Clause— |
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| “Secondary Class 1 contributions: apprentices under 25 |
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| Zero-rate secondary Class 1 contributions for apprentices under 25 |
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| (1) | SSCBA 1992 is amended as follows. |
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| (2) | In section 9 (calculation of secondary Class 1 contributions), in subsection |
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| (1A), after paragraph (a) insert— |
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| “(aa) | if section 9B below (zero-rate secondary Class 1 |
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| contributions for certain apprentices) applies to the |
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| (3) | In section 9A (the age-related secondary percentage), after subsection (1) |
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| “(1A) | But this section does not apply to those earnings so far as section 9B |
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| below (zero-rate secondary Class 1 contributions for certain |
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| apprentices) applies to them.” |
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| (4) | After section 9A insert— |
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| “9B | Zero-rate secondary Class 1 contributions for certain apprentices |
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| (1) | Where a secondary Class 1 contribution is payable as mentioned in |
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| section 6(1)(b) above, this section applies to the earnings paid in the |
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| tax week, in respect of the employment in question, if the earner is |
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| a relevant apprentice in relation to that employment. |
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| (2) | An earner is a “relevant apprentice”, in relation to an employment, |
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| (a) | is aged under 25, and |
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| (b) | is employed, in the employment, as an apprentice. |
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| (3) | For the purposes of this Act a person is still to be regarded as being |
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| liable to pay a secondary Class 1 contribution even if the amount of |
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| the contribution is £0 because this section applies to the earnings in |
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| (4) | The Treasury may by regulations provide that, in relation to |
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| relevant apprentices, there is to be for every tax year an upper |
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| secondary threshold for secondary Class 1 contributions. |
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| | That threshold is to be the amount specified for that year by |
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| regulations made by the Treasury. |
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| (5) | Subsections (4) and (5) of section 5 above (which confer power to |
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| prescribe an equivalent of a secondary threshold in relation to |
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| earners paid otherwise than weekly), and subsection (6) of that |
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| section as it applies for the purposes of those subsections, apply for |
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| the purposes of an upper secondary threshold in relation to |
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| relevant apprentices as they apply for the purposes of a secondary |
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| (6) | Subsection (7) applies if— |
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| (a) | a secondary Class 1 contribution is payable as mentioned in |
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| (b) | the earnings paid in the tax week, in respect of the |
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| employment in question, exceed the current upper |
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| secondary threshold (or the prescribed equivalent) in |
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| relation to relevant apprentices, and |
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| (c) | the earner is a relevant apprentice in relation to the |
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| (7) | This section does not apply to those earnings so far as they exceed |
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| that threshold (or the prescribed equivalent) (“the excess earnings”) |
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| and, accordingly, for the purposes of section 9(1) above the relevant |
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| percentage in respect of the excess earnings is the secondary |
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| (8) | But the Treasury may by regulations modify the effect of subsection |
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| (7) in a case in which the earner falls within an age group specified |
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| in column 1 of the table in section 9A(3) above. |
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| (9) | In subsection (2)(b) “apprentice” has such meaning as the Treasury |
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| (10) | The Treasury may by regulations amend subsection (2)(a) so as to |
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| alter the age that an earner must be in order to be a relevant |
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| apprentice (and regulations under this subsection may have the |
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| effect of allowing anyone who is of an age at which secondary Class |
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| 1 contributions are payable to be a relevant apprentice).” |
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| (5) | In section 176(1)(a) (regulations subject to affirmative procedure), after |
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| “section 9B(4), (8) or (10);”. |
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| (6) | SSCB(NI)A 1992 is amended as follows. |
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| (7) | In section 9 (calculation of secondary Class 1 contributions), in subsection |
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| (1A), after paragraph (a) insert— |
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| | |
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| “(aa) | if section 9B below (zero-rate secondary Class 1 |
|
| contributions for certain apprentices) applies to the |
|
| |
| (8) | In section 9A (the age-related secondary percentage), after subsection (1) |
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| |
| “(1A) | But this section does not apply to those earnings so far as section 9B |
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| below (zero-rate secondary Class 1 contributions for certain |
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| apprentices) applies to them.” |
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| (9) | After section 9A insert— |
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| “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, |
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| |
| (a) | is aged under 25, and |
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| (b) | is employed, in the employment, as an apprentice. |
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| (3) | For the purposes of this Act a person is still to be regarded as being |
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| liable to pay a secondary Class 1 contribution even if the amount of |
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| the contribution is £0 because this section applies to the earnings in |
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| |
| (4) | The Treasury may by regulations provide that, in relation to |
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| relevant apprentices, there is to be for every tax year an upper |
|
| secondary threshold for secondary Class 1 contributions. |
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| | That threshold is to be the amount specified for that year by |
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| regulations made by the Treasury. |
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| (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 |
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| relevant apprentices as they apply for the purposes of a secondary |
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| |
| (6) | Subsection (7) applies if— |
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| (a) | a secondary Class 1 contribution is payable as mentioned in |
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| |
| (b) | the earnings paid in the tax week, in respect of the |
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| employment in question, exceed the current upper |
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| secondary threshold (or the prescribed equivalent) in |
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| relation to relevant apprentices, and |
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| (c) | the earner is a relevant apprentice in relation to the |
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| |
| (7) | This section does not apply to those earnings so far as they exceed |
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| that threshold (or the prescribed equivalent) (“the excess earnings”) |
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| and, accordingly, for the purposes of section 9(1) above the relevant |
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| percentage in respect of the excess earnings is the secondary |
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| |
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| | |
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| (8) | But the Treasury may by regulations modify the effect of subsection |
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| (7) in a case in which the earner falls within an age group specified |
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| in column 1 of the table in section 9A(3) above. |
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| (9) | In subsection (2)(b) “apprentice” has such meaning as the Treasury |
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| |
| (10) | The Treasury may by regulations amend subsection (2)(a) so as to |
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| alter the age that an earner must be in order to be a relevant |
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| apprentice (and regulations under this subsection may have the |
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| effect of allowing anyone who is of an age at which secondary Class |
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| 1 contributions are payable to be a relevant apprentice).” |
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| (10) | In section 172(11A) (regulations subject to affirmative procedure), after |
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| “9A(7),” insert “section 9B(4), (8) or (10),”. |
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| (11) | The amendments made by this section come into force— |
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| (a) | for the purposes of making regulations under section 9B of SSCBA |
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| 1992 or section 9B of SSCB(NI)A 1992, at the end of the period of 2 |
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| months beginning with the day on which this Act is passed, and |
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| (b) | for remaining purposes, on 6 April 2016.” |
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2 | Page 1, line 13, at end insert— |
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| “(5A) | A statutory instrument containing (with or without other provision) |
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| regulations under this section that amend or repeal a provision of an Act |
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| may not be made unless a draft of the instrument has been laid before, and |
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| approved by a resolution of, each House of Parliament.” |
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3 | Page 1, line 14, after “section” insert “that does not have to be approved in draft |
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4 | Page 9, line 33, at end insert— |
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| “( ) | Schedule 24 to the Finance Act 2007 (penalties for |
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5 | Page 12, line 33, at end insert— |
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| “( ) | Schedule 24 to the Finance Act 2007 (penalties for |
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