§ Mr. Ashdownasked the Secretary of State for Social Services whether information held on the national insurance contributions system includes information to identify the Inland Revenue office dealing with the pay-as-you-earn employer for whom a contributor worked.
§ Dr. BoysonThe Inland Revenue tax district office number is part of the contribution information received from the Inland Revenue. This number can be retrieved from archival records held on microfilm but is not recorded on an individual computer account.
§ Mr. Ashdownasked the Secretary of State for Social Services (1) whether a record is kept of the Inland Revenue offices and reference numbers to which details of national insurance contributors' names, addresses and dates of births are transferred during the setting up of the new computerised pay-as-you-earn system;
(2) how details of national insurance contributors' names, addresses and dates of birth are transmitted to the appropriate Inland Revenue computer during the setting up of the new computerised pay-as-you-earn system.
§ Dr. BoysonIdentity details of national insurance contributors are sent to Inland Revenue to provide a skeleton record for the computerisation of pay-as-you-earn projects. The information is sent on magnetic tape by Data post. The details of the destination Inland Revenue office are not recorded on the contributor's account.
§ Mr. Ashdownasked the Secretary of State for Social Services how annual figures of pay and tax for national insurance contributions in employment will be transmitted to the Inland Revenue offices dealing with these employees and the new pay-as-you-earn system.
§ Dr. BoysonDetails of an employee's pay and tax are submitted to DHSS Newcastle each year by employers, together with details of national insurance contributions paid. From April 1984, identity, pay and tax details will be transmitted to the Inland Revenue computer centre on magnetic tape by Data post.
§ Mr. Neil Hamiltonasked the Secretary of State for Social Services what is his practice regarding the reassessment of the previous years' liabilities for class 1 national insurance (primary and secondary) where an individual has been reclassified by the Inland Revenue as liable to income tax on schedule E rather than schedule D and where there is no evidence of fraud or tax evasion.
§ Dr. BoysonEach case has to be considered on its merits. If, after investigation, it is decided that a person should be reclassified as an employed earner for national 63W insurance purposes, the Department's main responsibility is to ensure that the correct contributions are being paid currently. The date of change of classification could however be effective from an earlier year.
In those circumstances any class 2 contributions which the contributor has paid erroneously as a result of the change of status from self-employed to employed earner are reallocated as primary class 1 contributions. Any balance of primary contributions due and any arrears of secondary contributions are generally requested from the employer. If the erroneous class 2 contributions amount to more than the primary class 1 contributions due the excess is refundable. Inland Revenue deals with class 4 contributions overpaid as a result of a change of status.