The Regulations prescribe that the amounts chargeable to income tax under part 7A of the Income Tax (Earnings and Pensions) Act 2003 are treated as earnings for the purposes of national insurance contributions, if they would not already be earnings.
The Order increases the rates of class 2 and class 3 national insurance contributions and the level of earnings below which an individual may not be required to pay class 2 contributions, and specifies the lower and upper profit limits for class 4 national insurance contributions.
The draft Regulations amend the lower and upper earnings limits for primary class 1 national insurance contributions and the primary and secondary thresholds for primary and secondary class 1 national insurance contributions.
The Regulations prescribe that payment of a subsistence allowance by certain bodies of the European Union based in the UK to people seconded to that body for their expertise are disregarded for national insurance purposes.
The Regulations prescribe that certain expenses paid to a member of the House of Commons or other elected representatives, and payment of the registration fee under the Protecting Vulnerable Groups Scheme in Scotland by an employer on an employee's behalf, are disregarded when establishing liability for national insurance contributions.
The Regulations set out the interest rates applicable to ss.101
and 102 of the Finance Act 2009, which deal with interest on sums payable to and by HM Revenue and Customs, including PAYE payments by employers.
For three years employers that set up a new business outside London, the South East and the Eastern region are exempt from up to £5,000 of employer national insurance contributions for the first 10 employees during the first 12 months of employment.
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