§ Mr. MorganTo ask the Secretary of State for Social Services what guidance he issues to local offices on the grounds on which they may waive class 1 national insurance contributions unpaid by employers; and when they were last revised.
§ Mr. Portillo[holding answer 14 July 1988]: Authority for granting waivers of unlimited amount has been delegated to local office management since April 1983. Before then this authority rested with regional finance officers.
The relevant guidance to local offices suggests that in deciding whether a waiver should be granted, they should 670W take account of such factors as whether there was genuine and reasonable doubt about the class of contribution payable, whether this or another Government Department may have misdirected the employer on national insurance contribution liability, and the size of the arrears. In combination with one or more of those factors, local offices may take into account the assets of the employer.
§ Mr. MorganTo ask the Secretary of State for Social Services on what grounds the local Department of Health and Social Security office decided on 3 April 1985 to waive the class 1 national insurance contributions which New College school, Cardiff had omitted to pay in respect of the staff it employed from 6 April 1980 to 5 April 1984.
§ Mr. Portillo[holding answer 14 July 1988]: The waiver was given on the grounds that there was genuine and reasonable doubt about the class of national insurance contribution payable. The Department considered that the school managers had acted in good faith in not paying class 1 contributions. In these circumstances, it was decided not to jeopardise the financial stability of the school and thereby the jobs of its employees by demanding arrears of contributions.
§ Mr. MorganTo ask the Secretary of State for Social Services whether he expects to recover any or all of the sum of £16,575, being class 1 national insurance contributions unpaid by New College school, Cardiff, in respect of the staff it employed between 6 April 1980 and 5 April 1984.
§ Mr. Portillo[holding answer 14 July 1988]: No. An absolute waiver was given.