HC Deb 22 April 1975 vol 890 cc277-8W
Mr. Beith

asked the Secretary of State for Social Services why "sleeping" partners are exempt from class 4 social security contributions.

Mr. O'Malley

Liability to pay contributions depends upon the facts of each case. If the activities of a "sleeping" partner amount to gainful employment he is liable, subject to the normal rules, to pay class 2 and class 4 contributions. Otherwise he is not so liable but may pay class 3 contributions voluntarily.

Mr. Percival

asked the Secretary of State for Social Services what steps are taken to ensure that every individual's contribution record is kept fully up to date by her Department and particularly in the case of class 2 contributions which are not paid by stamping a contribution card and of class 4 contributions collected by the Inland Revenue.

Mr. Alec Jones

Class 1 contributions will be recorded each year on receipt of the information from the Inland Revenue. Any apparent deficiency will be investigated and, where appropriate, the payment of class 3 contributions to make good the deficiency will be invited. In the case of class 2 contributions, whether paid by stamping cards and recorded annually or by the direct debit method and recorded monthly, similar follow-up procedures will apply. Class 4 contributions will not be separately, recorded in my Department.