§ Mr. Squireasked the Secretary of State for Social Services why he has taken steps to reassess class 1 national insurance liability in respect of directors of companies who draw fees through the year in anticipation of the company meeting at which such fees will be voted.
§ Mrs. ChalkerFrom April 1975, when all company directors were brought into the scope of class 1 liability, their periodic drawings in anticipation of the annual vote of fees were treated as liable for contributions at the time they were paid. However, since September 1980, following legal advice that periodic drawings do not become earnings, and so liable for contributions, until they are unconditionally voted and credited to the director's account, we have assessed contribution liability by reference to annual lower and upper earnings limits. We have not reassessed liability where contributions were calculated under the previous method but will do so in individual cases if so requested.
£ million Consolidated Fund Supplement Percentage of appropriate contributions Saving on change of percentage over previous year's rate Saving on change of percentage from 1979–80 1979–80 2,343 18 — — 1980–81 2,848 18 — — 1981–82 2,600 14½ 532 532 1982–83 2,591 13 261 845 Cumulative Total 1,377 The savings assume that the deficits in 1981–82 and 1982–83 in the National Insurance Fund given in Cmnd. 8443 remain unchanged.