§ Mr. Redmond
To ask the Secretary of State for Social Security if he will make it his policy to take punitive action against companies which make bonus payments to staff in cocoa beans, gold bullion or other commodities to avoid national insurance contributions.
§ Miss Widdecombe
The question of avoidance is kept under careful review. Regulations were introduced in 1991, to extend national insurance liability to shares, unit trusts and other financial instruments. Further action to tighten the law may be taken at any time as and when it is necessary to do so.
From April 1993 employers may be liable to pay interest on any national insurance class 1 contributions which are not paid by the due date.