§ Mr. Malcolm BruceTo ask the Secretary of Stare for Social Security what is his estimate of the annual cost to the Exchequer of raising the starting point for paying employee national insurance contributions to the weekly earnings equivalent of the annual sum of £3,765; and what is his estimate of the number of individuals who would cease to be liable to pay employee national insurance contributions if such a change were made. [815]
§ Mr. HealdThe estimated loss in revenue from employee national insurance contributions would be some £775 million in a full year. On average, about 0.8 million employees in any week would no longer be liable to pay contributions.
Source:
Government Actuary's Department.
§ Mr. BruceTo ask the Secretary of State for Social Security what is his estimate of the additional revenue yield in a full year which would result from extending250W employers national insurance contributions to all fringe benefits currently liable to income tax only; and if he will make a statement. [648]
§ Mr. HealdAn estimated £250 million would be raised by extending employer national insurance contributions to taxable benefits in kind.
Source:
Inland Revenue.
§ Mr. BruceTo ask the Secretary of State for Social Security what is his estimate of the revenue lost to the Exchequer in(a) 1990–91, (b) 1992–93, (c) 1995–96, (d) 1996–97 and (e) 1997–98 from the avoidance of employers national insurance contributions by companies who have paid annual bonuses in benefits in kind as opposed to cash; and if he will make a statement. [649]
§ Mr. HealdInformation is not available. Not all payment practices using benefits in kind are aimed solely or largely at unfair avoidance of national insurance contributions, and employers are not required to identify bonus payments, annual or otherwise, separately from other payments.
§ Mr. BruceTo ask the Secretary of State for Social Security what is his estimate of the revenue yield from employers national insurance contributions on fringe benefits in(a) 1990–91, (b) 1992–93, (c)1995–96, (d) 1996–97 and (e) 1997–98; and if he will make a statement. [650]
§ Mr. HealdThe main benefits in kind provided by employers are cars and fuel and class IA contributions are charged on them.
Information regarding receipts from employer's class IA national insurance contributions—NICs—is in the table.
£ millions Year Employers1 class 1A NICs (including NHS contribution) 1990–91 1— 1992–93 470 1995–96 2469 1996–97 2476 1997–98 2491 Notes:
1Class 1A came into operation from April 1991.
2 Figures are estimated.
Source:
Government Actuary's Department.
A number of other payments in kind have been brought into class I NICs—paid by employers and employees—including certain share payments, options, assets, gilts and certain life assurance policies. No separate figures are available for the yield from these sources.
§ Mr. Simon HughesTo ask the Secretary of State for Social Security what plans he has to change the law on the liability of employers to pay national insurance. [319]
§ Mr. HealdWe plan to legislate to minor pay-as-you-earn settlement agreements in national insurance contributions at the earliest suitable opportunity. We remain committed to aligning further the rules for tax and NICs in the future except where there are clear reasons why they should differ.
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