§ Mr. Trotterasked the Secretary of State for Social Services what is the increased total limit applicable to contributions payable by a person who is both an employed earner and a self-employed earner under classes 1, 2 and 4 contributions.
§ Mr. O'MalleyThe annual maximum for a person liable for Class 1, Class 2, and Class 4 contributions for the tax 733W year 1976–77 will be £391.73 for a man, or £386.60 for a woman.
§ Mr. Ovendenasked the Secretary of State for Social Services whether she will make arrangements so that employees with more than one employment are not obliged to pay national insurance contributions in excess of the annual maximum.
§ Mr. O'MalleyWe are planning to authorise arrangements, taking effect from 6th April 1976, to enable certain employees with more than one employment to avoid having to pay excess national insurance contributions which subsequently fall to be refunded. These arrangements, which would be made under Regulation 41 of the Social Security (Contributions) Regulations 1975, would apply in cases where it was clear that contributions from one or more of an employed earner's employments would in total exceed the annual maximum. In such a case the employee would be able to apply to defer paying contributions on earnings from any other of his employments so that such contributions were not paid beyond the annual maximum. Alternatively he would be able to avoid excess payments by paying in advance a sum equal to the annual maximum so that no further contributions would be required.
Certain amendments to the Contributions Regulations would be necessary to fit in with these new arrangements and my right hon. Friend has referred for consideration by the National Insurance Advisory Committee a preliminary draft of the necessary amending regulations.