HC Deb 18 March 1997 vol 292 c572W
Mr. Ian Bruce

To ask the Secretary of State for Social Security what changes he proposes to the national insurance contributions rules before the beginning of the next tax year. [21042]

Mr. Heald

The Social Security (Contributions) Amendment (No. 3) Regulations were laid on Friday 14 March and will come into force by 6 April. These make three changes to national insurance contributions. First, they maintain the alignment of tax and NICs treatment of jobmatch work incentive allowances. Secondly, they change the date of payment of class 1A contributions for employers ceasing to trade or transferring business to another company. Thirdly, they exempt from NICs allowances paid to service personnel, other Crown servants and employees of the Commonwealth War Graves Commission and the British Council based overseas. A similar exemption has existed in tax legislation for some years. These regulations therefore bring the treatment of overseas allowances for crown servants under national insurance legislation into line with their tax treatment.

I also intend to introduce a fourth measure, also to come into force from 6 April. This will also maintain alignment of tax and NICs on employer-funded training. Regulations for this will be laid shortly.