Sub-postmasters (National Insurance Payments)

HC Deb 05 April 1984 vol 57 cc641-2W

Mr. Rowe

asked the Secretary of State for Social Services whether the Post Office has been given instructions by his Department on the deduction of national insurance contributions before payments are made to sub-postmasters.

Dr. Boyson

Yes. The Post Office was advised in 1975 that under the Social Security Act 1975, sub-postmasters are liable to pay class 1 (employed earner) national insurance contributions. Therefore, in line with other class 1 contributors, payments to sub-postmasters are made net of national insurance contributions.

Mr. Rowe

asked the Secretary of State for Social Services why payments to sub-postmasters under a contract for providing services to the Post Office are made net of national insurance contributions.

Dr. Boyson

For the purpose of the Social Security Acts, a person who is gainfully employed in Great Britain either under a contract of service, or in an office with emoluments chargeable to income tax under Schedule E, is liable for class 1 (employed earner's) contributions. Sub-postmasters are regarded as office holders; consequently class 1 national insurance contributions are deducted before they receive their payments.