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National Insurance Contributions Bill


National Insurance Contributions Bill
Part 2 — Regional secondary contributions holiday for new businesses

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8       

Making of deductions or refunds

(1)   

To the extent that the appropriate amount is attributable to secondary Class 1

contributions payable in respect of earnings paid in a tax year it may be

deducted from any one or more Class 1 contributions payments made by P in

respect of that tax year.

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(2)   

If the amount which P would be entitled to deduct under this section exceeds

the amount of the payments from which it can be deducted, HMRC must

instead refund the excess to P if P requests them to do so.

(3)   

No deduction or refund may be made under this section until an application

has been submitted to, and granted by, HMRC.

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(4)   

An application must contain such information, and must be made in such form

and manner, as is specified by HMRC.

(5)   

No application may be made for a refund in respect of a qualifying employee

after the end of the period of 4 years beginning with the day on which the last

deduction could be made in respect of the qualifying employee.

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(6)   

For the purposes of—

(a)   

Part 2 of the Social Security Contributions (Transfer of Functions, etc.)

Act 1999, and

(b)   

Part 3 of the Social Security Contributions (Transfer of Functions, etc.)

(Northern Ireland) Order 1999 (S.I. 1999/671),

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(decisions and appeals), the decisions to which this subsection applies are

decisions of an officer of Revenue and Customs under section 8 of that Act or

Article 7 of that Order.

(7)   

Subsection (6) applies to—

(a)   

a decision whether P is or was entitled to make a deduction under this

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section and, if so, the amount that P is or was entitled to deduct, and

(b)   

a decision whether P is entitled to a refund under this section and, if so,

the amount of the refund.

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Retention of records

(1)   

This section applies where P is or was entitled to make a deduction under

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section 8 in respect of a qualifying employee.

(2)   

P must keep and preserve any documents or records relating to—

(a)   

P’s entitlement to make a deduction in respect of the employee, and

(b)   

the calculation of any amount that has been, or could have been,

deducted,

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for not less than 3 years beginning with the date on which the last deduction

under section 8 is, or could be, made in respect of the employee.

(3)   

Accordingly, the duty imposed by paragraph 26(1) of Schedule 4 to the 2001

Regulations (retention by employer of contribution and election records) does

not apply to any such documents or records.

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(4)   

The duty imposed by this section may be discharged by preserving the

documents or records in any form or by any means.

(5)   

For the purposes of Schedule 36 to the Finance Act 2008 (information and

inspection powers), as applied by section 110ZA of SSAA 1992 and section

 
 

National Insurance Contributions Bill
Part 2 — Regional secondary contributions holiday for new businesses

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104ZA of SSA(NI)A 1992, the duty imposed by this section is to be treated as if

it were a duty imposed under or by virtue of SSCBA 1992 or SSCB(NI)A 1992.

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Anti-avoidance

(1)   

This Part does not apply if P starts the new business pursuant to avoidance

arrangements.

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(2)   

Arrangements are “avoidance arrangements” if the main purpose, or one of the

main purposes, of P in being a party to them is to secure that activities which

might otherwise have been carried on as part of another business (whether by

P or any other person) are carried on by P as part of the new business in order

to obtain deductions or refunds (or increased deductions or refunds) under

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this Part.

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Interpretation of Part 2

(1)   

In this Part—

“the 2001 Regulations” means the Social Security (Contributions)

Regulations 2001 (S.I. 2001/1004);

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“the appropriate amount” is to be read in accordance with section 7;

“arrangements” includes any agreement, understanding, scheme,

transaction or series of transactions (whether or not legally

enforceable);

“Class 1 contributions payments” means payments under—

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(a)   

paragraph 10 of Schedule 4 to the 2001 Regulations (monthly

payments), or

(b)   

paragraph 11 of that Schedule (quarterly payments);

“the Eastern Region” means—

(a)   

the counties of Bedford, Cambridgeshire, Central Bedfordshire,

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Essex, Hertfordshire, Norfolk and Suffolk, and

(b)   

the non-metropolitan districts of Luton, Peterborough,

Southend-on-Sea and Thurrock;

“the excluded regions” has the meaning given by section 4(5);

“HMRC” means the Commissioners for Her Majesty’s Revenue and

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Customs;

“holiday period” has the meaning given by section 6(4);

“qualifying employee” has the meaning given by section 6;

“the relevant period” has the meaning given by section 4(4);

“the South East Region” means—

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(a)   

the counties of Buckinghamshire, East Sussex, Hampshire, the

Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex, and

(b)   

the non-metropolitan districts of Bracknell Forest, Brighton and

Hove, Medway, Milton Keynes, Portsmouth, Reading, Slough,

Southampton, West Berkshire, Windsor and Maidenhead and

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Wokingham.

(2)   

Expressions used in this Part and in Part 1 of SSCBA 1992 or SSCB(NI)A 1992

have the same meaning for the purposes of this Part as they have for the

purposes of that Part.

 
 

National Insurance Contributions Bill
Part 3 — General

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Part 3

General

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Abbreviations of Acts

In this Act—

“SSAA 1992” means the Social Security Administration Act 1992;

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“SSA(NI)A 1992” means the Social Security Administration (Northern

Ireland) Act 1992;

“SSCBA 1992” means the Social Security Contributions and Benefits Act

1992;

“SSCB(NI)A 1992” means the Social Security Contributions and Benefits

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(Northern Ireland) Act 1992.

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Commencement

(1)   

Part 1 comes into force on 6 April 2011.

(2)   

Part 2 and this Part come into force on the day on which this Act is passed.

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Extent

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(1)   

The amendments made by Part 1 have the same extent as the provisions to

which they relate.

(2)   

Part 2 and this Part extend to England and Wales, Scotland and Northern

Ireland.

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Short title

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This Act may be cited as the National Insurance Contributions Act 2010.

 
 

 
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Revised 14 October 2010