§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services what changes have been made in liability for class 1 and class 4 national insurance contributions since the new system was first introduced in April 1975 for (a) persons in multiple employment, (b) persons who are both self-employed and in employment and (c) persons in occupations which might be capable of definition as either employed or self-employed; what further possible changes are being studied by the Government; and whether she will make a statement.
§ Mr. O'MalleyUnder regulations which came into operation on 25th February 1976, where a person has more than one employed earners' employment and it is clear that the Class 1 contributions payable in respect of the earnings in one or more of them would exceed the prescribed maximum, he can apply to defer payment of contributions on earnings in any of his other employments. Alternatively, he can avoid the excess payment of contributions, and consequent refund, by paying in advance a sum equal to the annual maximum. Since April 1975 there have been no changes in the provisions relating to the contribution liability of persons who are both self-employed and in employed earners' employment, nor in the provisions for determining whether a person falls into the category of "employed earner" or "self-employed earner".
531WI am at present studying possible changes to the existing multiple employments provisions to take account of the introduction in April 1978 of different contribution rates for employments depending on whether they are or are not contracted out of the new State pension scheme.