§ Mr. DELANYasked the Secretary to the Treasury whether a person in receipt of a salary of £160 a year, and also drawing £1 interest on savings bank deposits, or £161 in all, is entitled to claim a certificate of exemption from the Insurance Commissioners; and, if not entitled to such exemption, will he be liable to pay Income Tax?
§ Mr. MASTERMANThe question of insurance under the National Insurance Act in the case of persons employed otherwise than by way of manual labour depends, not on total income, but on rate of remuneration. Where a person employed in whole-time service is remunerated at a rate not exceeding £160 a year, the provisions of the Act apply irrespective of any income which he may derive from other sources. His liability to pay Income Tax does not affect, and is not affected by, his liability to be insured. Where, however, a person who is employed within the meaning of the Act proves that he is either: (a) in receipt of a pension or income of the annual value of £26 or upwards not dependent upon his personal exertions, or (b) ordinarily and mainly dependent for his livelihood upon some other person, he may claim a certificate of exemption, such certificate relieving him, but not his employer, of the payment of contributions.