HL Deb 14 December 1977 vol 387 cc2221-2WA
Lord BOYD-CARPENTER

asked Her Majesty's Government:

Whether they are aware that in cases in which persons in several employments take on additional employment, the Department of Health and Social Security makes a practice of instructing the Inland Revenue to make deductions from the remuneration which they receive in that additional employment in respect of National Insurance contributions without first ascertaining whether the person concerned is not already in respect of his other employment paying the maximum National Insurance contribution prescribed by law; whether they will direct the Department to stop this practice; and whether in all cases where this has been done and as a result contributions have been unlawfully deducted, they will direct that these be refunded forthwith with interest.

Lord WELLS-PESTELL

There is a statutory liability for the payment to the Inland Revenue of Class 1 earnings-related contributions in respect of an employed earner's employment where earnings reach the lower earnings limit, currently £15 a week (or the equivalent for a person paid otherwise than weekly). The employer may recover the employee's contribution by deduction from current earnings. Where a person has multiple employments and in one or a combination of them expects to pay at least 52 contributions at the maximum rate he can avoid excess payments by applying either to pay in advance the maximum liability or for deferment of his contributions in his other employments. Where deferment is granted the Department of Health and Social Security instructs the appropriate employers not to pay the employee's contributions in respect of his employment with them.

When a person takes an additional employment the Department cannot grant deferment, if otherwise appropriate, until an application is made and the necessary details are provided. In the absence of a certificate of deferment or advance payment, contributions will be lawfully deducted by the employer. The Department has made great efforts to publicise these arrangements for the deferment or advance payment of contributions in the interests of both the individual and the Department.