HC Deb 09 May 1973 vol 856 cc699-700
Mr. Dean

I beg to move Amendment No. 111, in page 132, line 39, at end insert: ' (cc) for enabling contributions to be treated as paid in respect of a year earlier or later than that in respect of which they were actually paid'. This is an amendment designed to simplify administration by avoiding unnecessary work and expense for contributors and for the Department.

It sometimes happens that a person pays contributions in error—for example, for the wrong period, at the wrong rate, or for the wrong class—while at the same time he owes contributions which are properly payable. In such circumstances, it is desirable to re-allocate the contributions which have been paid so as to avoid the need for separate refund and compliance procedures.

Paragraph 6(1)(e) of Schedule 1 to the Bill gives power for such re-allocation of contributions, and it was hoped that this power would be adequate to cover all the types of case which can arise.

However, legal advice now is that the references to contributions of the wrong class, or at the wrong rate, or of the wrong amount do not in fact cover certain cases which, though rare, can arise. One such case is where contributions of a particular class—for example, Class 2 contributions for self-employment—are not due for the year in respect of which they are paid, perhaps because the contributor has already reached the annual limit for contributions, under Clause 6(1), by way of Class 1 contributions, but are nevertheless due for an earlier or later year. The amendment enables regulations to provide for the re-allocation of contributions in this type of case.

Amendment agreed to.

Mr. Dean

I beg to move Amendment No. 112, in page 133, line 45, leave out from 'instrument' to first 'the' in line 46.

Mr. Deputy Speaker

With this we are to take Government Amendment No. 113.

Mr. Dean

Both these amendments are merely for the avoidance of doubt. They are clarifying amendments.

Amendment agreed to.

Amendment made: No. 113, in page 133, line 49, at end insert: '(2) Sub-paragraph (1) above shall have effect notwithstanding anything in any Act, Royal Warrant, Order in Council, order or scheme '.—[Mr. Dean.]

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