§ Mr. LuffTo ask the Secretary of State for Social Security when he will consult on his proposals to let business pay national insurance contributions for minor expenses in a lump sum. [10461]
§ Mr. LilleyI have today published a consultation document containing draft clauses on the alignment of national insurance contributions with tax under Inland Revenue PAYE settlement agreements. More than 200 organisations and individuals will receive a copy. The consultation period ends on 7 March 1997.
My proposal is to introduce a simple employer-only charge for national insurance to work alongside the Inland Revenue's single lump sum tax charge on minor expense payments and benefits in kind. This will mean that employers can enjoy a reduced administrative burden for contributions similar to that provided by the new tax arrangements. This is part of our continuing commitment to ensure that the administration costs of national insurance for employers are kept to the minimum consistent with the overall objectives of the contributory system.
I intend to include these changes in a Bill containing measures to simplify the national insurance system and improving compliance and administration of national insurance contributions for early introduction in the next Parliament.
Copies of the consultation document have been placed in the Library.