# National Insurance Contributions Act 2014

        - Previous
        - Next

U.K.

# National Insurance Contributions Act 2014

# 2014 CHAPTER 7

An Act to make provision in relation to national insurance contributions; and for connected purposes.

[13th March 2014]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons,                           in this present Parliament assembled, and by the authority of the same, as follows:—                        

## Employment allowanceU.K.

### 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 3Connected personsU.K.

(1)This section applies if—                  

(a)at the beginning of a tax year, two or more companies which are not charities are connected with one another, and                  

(b)apart from this section, two or more of those companies would qualify for an employment allowance for the tax year.                  

(2)This section also applies if—                  

(a)at the beginning of a tax year, two or more charities are connected with one another, and                  

(b)apart from this section, two or more of those charities would qualify for an employment allowance for the tax year.                  

(3)Only one of the companies or charities mentioned in subsection (1)(b) or (2)(b) (as the case may be) can qualify for an employment                        allowance for the tax year.                  

(4)It is up to the companies or charities so mentioned to decide which of them that will be.                  

(5)Part 1 of Schedule 1 sets out the rules for determining if two or more companies are “connected” with one another for the                        purposes of subsection (1).                  

(6)Part 2 of Schedule 1 sets out the rules for determining if two or more charities are “connected” with one another for the                        purposes of subsection (2).                  

(7)In this section and Schedule 1—                  
          -  “charity” has the same meaning as in the Small Charitable Donations Act 2012 (see section 18(1) of that Act), subject to paragraph                           8(5) of Schedule 1, and                         
          -  “company” has the meaning given by section 1121(1) of the Corporation Tax Act 2010 (meaning of “company”) and includes a limited liability                           partnership.                         

### 4How does a person who qualifies for an employment allowance receive it?U.K.

(1)Her Majesty's Revenue and Customs (“HMRC”) must (from time to time) make such arrangements as HMRC consider appropriate for persons who qualify for an employment                        allowance for a tax year to receive it by making deductions from qualifying payments which they are required to make under                        regulations made under paragraph 6 of Schedule 1 to SSCBA 1992 or SSCB(NI)A 1992 (regulations combining collection of contributions                        with tax).                  

(2)In this section “qualifying payment”, in relation to a person who qualifies for an employment allowance for a tax year, means a payment in respect of any of                        the person's liabilities mentioned in section 1(1)(b) which are not excluded liabilities (see section 2).                  

(3)If under HMRC's arrangements a person is permitted to make a deduction from a qualifying payment, the person must make the                        deduction and must make it before any other deductions which the person is permitted to make from the payment under any other                        legislation.                  

(4)HMRC's arrangements may (in particular)—                  

(a)require deductions to be made at the earliest opportunity in a tax year;                  

(b)provide that deductions may not be made in specified cases;                  

(c)place limits on the amounts of deductions;                  

(d)provide that a person is not permitted to make deductions unless the person has first given notice to HMRC in such form and                        manner, and containing such information, as HMRC may require.                  

(5)Subsections (6) to (8) apply in relation to a person who qualifies for an employment allowance for a tax year if the person                        has not deducted under this section the full amount of the employment allowance by the end of the month of April in which                        the tax year ends.                  

(6)The person may apply to HMRC for a repayment, up to the outstanding amount of the employment allowance, of qualifying payments                        made by the person; and HMRC must make the repayment.                  

(7)The person's application must be made in such form and manner, and contain such information, as HMRC may require.                  

(8)The person's application must be made before the end of the 4th tax year after the tax year mentioned in subsection (5).                  

(9)In the application of section 102 of the Finance Act 2009 (repayment interest on sums to be paid by HMRC) in relation to a                        repayment under this section, the repayment interest start date is the date on which HMRC receive the person's application.                  

(10)A repayment under this section, and any interest in respect of it under section 102 of the Finance Act 2009, are to be paid                        out of the National Insurance Fund or the Northern Ireland National Insurance Fund.                  

(11)A person who qualifies for an employment allowance for a tax year may not receive it otherwise than by way of deductions or                        a repayment under this section.                  

### 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 6Decisions and appeals about entitlements to make deductions etcU.K.

(1)In Part 2 of the Social Security Contributions (Transfer of Functions, etc) Act 1999 (decisions and appeals), in section 8(1)                        (decisions of officers of Revenue and Customs), after paragraph (e) insert—                  

“(ea)to decide whether a person is or was entitled to make a deduction under section 4 of the National Insurance Contributions                           Act 2014 (deductions etc of employment allowance) and, if so, the amount the person is or was entitled to deduct,                  

(eb)to decide whether a person is or was entitled to a repayment under that section and, if so, the amount of the repayment,”.                  

(2)In Part 3 of the Social Security Contributions (Transfer of Functions, etc) (Northern Ireland) Order 1999 (S.I. 1999/671) (decisions and appeals), in Article 7(1) (decisions of officers of Revenue and Customs), after paragraph (e) insert—                  

“(ea)to decide whether a person is or was entitled to make a deduction under section 4 of the National Insurance Contributions                           Act 2014 (deductions etc of employment allowance) and, if so, the amount the person is or was entitled to deduct,                  

(eb)to decide whether a person is or was entitled to a repayment under that section and, if so, the amount of the repayment,”.                  

### 7Retention of records etcU.K.

(1)In Schedule 1 to SSCBA 1992 (supplementary provisions relating to national insurance contributions), in paragraph 8(1) (general                        regulation-making powers), after paragraph (a) insert—                  

“(aa)for requiring persons to maintain, in such form and manner as may be prescribed, records of such matters as may be prescribed                           for purposes connected with the employment allowance provisions (within the meaning of the National Insurance Contributions                           Act 2014), and to retain the records for so long as may be prescribed;”.                  

(2)In Schedule 1 to SSCB(NI)A 1992 (supplementary provisions relating to national insurance contributions), in paragraph 8(1)                        (general regulation-making powers), after paragraph (a) insert—                  

“(aa)for requiring persons to maintain, in such form and manner as may be prescribed, records of such matters as may be prescribed                           for purposes connected with the employment allowance provisions (within the meaning of the National Insurance Contributions                           Act 2014), and to retain the records for so long as may be prescribed;”.                  

(3)In paragraph 26 of Schedule 4 to the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (retention of records),                        after sub-paragraph (4) insert—                  

“(4A)Sub-paragraph (4B) applies in relation to an employer who makes deductions, or applies for a repayment, under section 4 of                           the National Insurance Contributions Act 2014 on account of an employment allowance for which the employer qualifies for a                           tax year (or who intends to do so).                  

(4B)So far as they are not otherwise covered by sub-paragraph (4), “contribution records” includes any documents or records relating to—                  

(a)the employer's qualification for the employment allowance, or                  

(b)the calculation of any amount that has been, or could be, deducted or repaid under section 4 of the National Insurance Contributions                           Act 2014 on account of the employment allowance.”                  

(4)The amendment made by subsection (3) is to be treated as having been made by the Treasury using the powers conferred by paragraph                        8(1)(aa) of Schedule 1 to SSCBA 1992 (as inserted by subsection (1)) and paragraph 8(1)(aa) of Schedule 1 to SSCB(NI)A 1992                        (as inserted by subsection (2)).                  

(5)In section 110ZA of the Social Security Administration Act 1992 (powers to call for documents etc), in subsection (2)(a),                        after “Benefits Act” insert “ or the National Insurance Contributions Act 2014 ”.                  

(6)In section 104ZA of the Social Security Administration (Northern Ireland) Act 1992 (powers to call for documents etc), in                        subsection (2)(a), after “Benefits Act” insert “ or the National Insurance Contributions Act 2014 ”.                  

### 8Commencement of the employment allowance provisions etcU.K.

Sections 1 to 7 and Schedule 1 come into force on 6 April 2014.

## Introduction of age-related secondary percentageU.K.

### 9Reduction of secondary Class 1 contributions for certain age groupsU.K.

(1)SSCBA 1992 is amended as follows.                  

(2)In section 9 (calculation of secondary Class 1 contributions)—                  

(a)in subsection (1) for “the secondary percentage” substitute “ the relevant percentage ”, and                  

(b)after subsection (1) insert—                  

“(1A)For the purposes of subsection (1) “the relevant percentage” is—                  

(a)if section 9A below applies to the earnings, the age-related secondary percentage;                  

(b)otherwise, the secondary percentage.”                  

(3)After section 9 insert—                  

#### “9AThe age-related secondary percentage

(1)Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this section applies to the earnings                           paid in the tax week, in respect of the employment in question, if the earner falls within an age group specified in column                           1 of the table in subsection (3).                  

(2)For the purposes of section 9(1A)(a) above, the age-related secondary percentage is the percentage for the earner's age group                           specified in column 2 of the table.                  

(3)Here is the table—                  

(4)The Treasury may by regulations amend the table—                  

(a)so as to add an age group in column 1 and to specify the percentage in column 2 for that age group;                  

(b)so as to reduce (or further reduce) the percentage specified in column 2 for an age group already specified in column 1 (whether                           for the whole of the age group or only part of it).                  

(5)A percentage specified under subsection (4)(a) must be lower than the secondary percentage.                  

(6)For the purposes of this Act a person is still to be regarded as being liable to pay a secondary Class 1 contribution even                           though the amount of the contribution is £0 because the age-related secondary percentage is 0%.                  

(7)The Treasury may by regulations provide that, in relation to an age group specified in the table, there is to be for every                           tax year an upper secondary threshold for secondary Class 1 contributions.                  

That threshold is to be the amount specified for that year by regulations made by the Treasury.                  

(8)Subsections (4) and (5) of section 5 above (which confer power to prescribe an equivalent of a secondary threshold in relation                           to earners paid otherwise than weekly), and subsection (6) of that section as it applies for the purposes of those subsections,                           apply for the purposes of an upper secondary threshold in relation to an age group as they apply for the purposes of a secondary                           threshold.                  

(9)Where—                  

(a)a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above,                  

(b)the earner falls within an age group in relation to which provision has been made under subsection (7), and                  

(c)the earnings paid in the tax week, in respect of the employment in question, exceed the current upper secondary threshold                           (or the prescribed equivalent) in relation to the age group,                  

this section is not to apply to the earnings so far as they exceed that threshold (or the prescribed equivalent); and for                        the purposes of section 9(1) above the relevant percentage in respect of the earnings so far as they exceed that threshold                        (or the prescribed equivalent) is, accordingly, to be the secondary percentage.                  

(10)In subsections (7) to (9) references to an age group include a part of an age group.”                  

(4)In section 122(1) (interpretation of Parts 1 to 6), at the appropriate place insert—                  

““age-related secondary percentage” is to be construed in accordance with section 9A(2) above;”.                  

(5)In section 176(1)(a) (parliamentary control: instruments subject to affirmative procedure) after “section 4C;” insert— “ section 9A(7); ”.                  

(6)SSCB(NI)A 1992 is amended as follows.                  

(7)In section 9 (calculation of secondary Class 1 contributions)—                  

(a)in subsection (1) for “the secondary percentage” substitute “ the relevant percentage ”, and                  

(b)after subsection (1) insert—                  

“(1A)For the purposes of subsection (1) “the relevant percentage” is—                  

(a)if section 9A below applies to the earnings, the age-related secondary percentage;                  

(b)otherwise, the secondary percentage.”                  

(8)After section 9 insert—                  

#### “9AThe age-related secondary percentage

(1)Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, this section applies to the earnings                           paid in the tax week, in respect of the employment in question, if the earner falls within an age group specified in column                           1 of the table in subsection (3).                  

(2)For the purposes of section 9(1A)(a) above, the age-related secondary percentage is the percentage for the earner's age group                           specified in column 2 of the table.                  

(3)Here is the table—                  

(4)The Treasury may by regulations amend the table—                  

(a)so as to add an age group in column 1 and to specify the percentage in column 2 for that age group;                  

(b)so as to reduce (or further reduce) the percentage specified in column 2 for an age group already specified in column 1 (whether                           for the whole of the age group or only part of it).                  

(5)A percentage specified under subsection (4)(a) must be lower than the secondary percentage.                  

(6)For the purposes of this Act a person is still to be regarded as being liable to pay a secondary Class 1 contribution even                           though the amount of the contribution is £0 because the age-related secondary percentage is 0%.                  

(7)The Treasury may by regulations provide that, in relation to an age group specified in the table, there is to be for every                           tax year an upper secondary threshold for secondary Class 1 contributions.                  

That threshold is to be the amount specified for that year by regulations made by the Treasury.                  

(8)Subsections (4) and (5) of section 5 above (which confer power to prescribe an equivalent of a secondary threshold in relation                           to earners paid otherwise than weekly), and subsection (6) of that section as it applies for the purposes of those subsections,                           apply for the purposes of an upper secondary threshold in relation to an age group as they apply for the purposes of a secondary                           threshold.                  

(9)Where—                  

(a)a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above,                  

(b)the earner falls within an age group in relation to which provision has been made under subsection (7), and                  

(c)the earnings paid in the tax week, in respect of the employment in question, exceed the current upper secondary threshold                           (or the prescribed equivalent) in relation to the age group,                  

this section is not to apply to the earnings so far as they exceed that threshold (or the prescribed equivalent); and for                        the purposes of section 9(1) above the relevant percentage in respect of the earnings so far as they exceed that threshold                        (or the prescribed equivalent) is, accordingly, to be the secondary percentage.                  

(10)In subsections (7) to (9) references to an age group include a part of an age group.”                  

(9)In section 121(1) (interpretation of Parts 1 to 6), at the appropriate place insert—                  

““age-related secondary percentage” is to be construed in accordance with section 9A(2) above;”.                  

(10)In section 172(11A) (parliamentary control: instruments subject to affirmative procedure) after “4C,” insert “ 9A(7), ”.                  

(11)The following come into force at the end of the period of 2 months beginning with the day on which this Act is passed—                  

(a)any power conferred on the Treasury by virtue of this section to make regulations, and                  

(b)the amendments made by subsections (5) and (10).                  

(12)So far as not already brought into force by subsection (11), the amendments made by this section come into force on 6 April                        2015.                  

Commencement Information

I1S. 9 wholly in force at 6.4.2015; s. 9 in force at Royal Assent but the amendments made by this section come into force as follows, see s. 9(11)(12): the amendments in s. 9(5)(10) in force at 13.5.2014; the amendments in s. 9(3)(8) in force for specified purposes at 13.5.2014                              and otherwise in force at 6.4.2015; the amendments in s. 9(2)(4)(7)(9) in force at 6.4.2015

## Application of general anti-abuse rule to national insurance contributionsU.K.

### 10GAAR to apply to national insurance contributionsU.K.

(1)In Part 5 of the Finance Act 2013 (general anti-abuse rule)—                  

(a)references to tax, other than in references to particular taxes, include national insurance contributions, and                  

(b)references to a charge to tax include a liability to pay national insurance contributions.                  

(2)Section 206(3) of that Act (list of taxes to which the general anti-abuse rule applies) has effect as if it included a reference                        to national insurance contributions.                  

(3)Section 207 of that Act (meaning of “tax arrangements” and “abusive”) has effect as if, in subsection (4)(a), after “income,” there were inserted “ earnings (within the meaning of Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social                           Security Contributions and Benefits (Northern Ireland) Act 1992), ”.                  

(4)Adjustments to be made in respect of national insurance contributions under section 209 of the Finance Act 2013 (counteracting                        the tax advantages) may be made by a notice given under paragraph 12 of Schedule 43 to that Act (notice of final decision).                  

(5)For the purposes of section 210 of that Act (consequential relieving adjustments)—                  

(a)if a claim under that section relates to Class 4 national insurance contributions, Schedule 1A to the Taxes Management Act                        1970 (as that Schedule applies in relation to such contributions) applies to it, and                  

(b)if a claim under that section relates to any other class of national insurance contributions, it must be made in such form                        and manner, and contain such information, as HMRC may require.                  

(6)Adjustments to be made in respect of national insurance contributions under that section may be made by a notice given under                        subsection (7) of that section.                  

(7)This section has effect in relation to tax arrangements (within the meaning of Part 5 of the Finance Act 2013 as modified                        by this section) entered into on or after the day on which this Act is passed.                  

(8)Subsections (9) and (10) apply where the tax arrangements—                  

(a)would not have been tax arrangements but for the modifications made by this section, and                  

(b)form part of other arrangements entered into before the day on which this Act is passed.                  

(9)The other arrangements are to be ignored for the purposes of section 207(3) of the Finance Act 2013, subject to subsection                        (10).                  

(10)Account is to be taken of the other arrangements for the purposes of that section if, as a result, the tax arrangements would                        not be abusive.                  

(11)In this section—                  
          -  “abusive”, “arrangements” and “HMRC” have the same meaning as in Part 5 of the Finance Act 2013;                         
          -  “national insurance contributions” means contributions under either Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.                         

### 11Power to modify application of GAAR to national insurance contributionsU.K.

(1)Where a modification is made to Part 5 of the Finance Act 2013 (general anti-abuse rule) that does not apply in relation to                        national insurance contributions (“the tax only modification”), the Treasury may by regulations—                  

(a)make provision for the purpose of applying the tax only modification in relation to national insurance contributions (with                        or without modifications),                  

(b)make provision in relation to national insurance contributions corresponding to the tax only modification, or                  

(c)otherwise modify the general anti-abuse rule, as it has effect in relation to national insurance contributions, in consequence                        of, or for the purpose of making provision supplementary or incidental to, the tax only modification.                  

(2)Regulations under this section—                  

(a)may amend, repeal or revoke any provision of an Act or instrument made under an Act (whenever passed or made),                  

(b)may make consequential, incidental, supplementary, transitional, transitory or saving provision, and                  

(c)may make different provision for different cases, classes of national insurance contributions or purposes.                  

(3)Regulations under this section must be made by statutory instrument.                  

(4)A statutory instrument containing (with or without other provision) regulations under this section that amend or repeal a                        provision of an Act may not be made unless a draft has been laid before, and approved by a resolution of, each House of Parliament.                  

(5)A statutory instrument containing regulations under this section that does not have to be approved in draft under subsection                        (4) is subject to annulment in pursuance of a resolution of either House of Parliament.                  

(6)In this section—                  
          -  “general anti-abuse rule” has the same meaning as in Part 5 of the Finance Act 2013;                         
          -  “national insurance contributions” means contributions under either Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.                         

## Oil and gas workers on the continental shelfU.K.

### 12Oil and gas workers on the continental shelf: secondary contributors etcU.K.

(1)Section 120 of SSCBA 1992 (employment at sea: continental shelf operations) is amended as follows.                  

(2)In subsection (1), after “persons” insert “ (“continental shelf workers”) ”.                  

(3)In subsection (3)—                  

(a)for “the regulations” substitute “ regulations under subsection (1) ”, and                  

(b)for “such person” substitute “ continental shelf worker ”.                  

(4)After that subsection insert—                  

“(4)The Treasury may also, by regulations, make provision for, and in connection with, the issue by Her Majesty's Revenue and                           Customs of certificates to prescribed persons who are, by virtue of regulations under subsection (1), to be treated as the                           secondary contributor in relation to the payment of earnings to or for the benefit of one or more continental shelf workers—                  

(a)confirming that the prescribed person's liabilities to pay contributions in respect of the continental shelf workers specified                           or described in the certificate are being met by another person, and                  

(b)discharging the prescribed person, while the certificate is in force, from liability to make any payments in respect of the                           contributions, in the event that the other person fails to pay them in full.                  

(5)Regulations under subsection (4) may, in particular, make provision about—                  

(a)applying for a certificate;                  

(b)the circumstances in which a certificate may, or must, be issued or cancelled;                  

(c)the form and content of a certificate;                  

(d)the effect of a certificate (including provision modifying the effect mentioned in subsection (4)(b) or specifying further                           effects);                  

(e)the effect of cancelling a certificate.”                  

## PartnershipsU.K.

### 13Class 4 contributions: partnershipsU.K.

(1)SSCBA 1992 is amended as follows.                  

(2)After section 18 insert—                  

#### “18AClass 4 contributions: partnerships

(1)The Treasury may by regulations—                  

(a)modify the way in which liabilities for Class 4 contributions of a partner in a firm are determined, or                  

(b)otherwise modify the law relating to Class 4 contributions,                  

as they consider appropriate to take account of the passing or making of a provision of the Income Tax Acts relating to firms                        or partners in firms.                  

(2)“Firm” has the same meaning as in the Income Tax (Trading and Other Income) Act 2005 (and includes a limited liability partnership                           in relation to which section 863(1) of that Act applies); and “partner” is to be read accordingly and includes a former partner.                  

(3)Regulations under this section may have retrospective effect; but they may not have effect before the beginning of the tax                           year in which they are made.”                  

(3)In section 176(1)(a) (parliamentary control: instruments subject to affirmative procedure), after “section 18;” insert— “ section 18A; ”.                  

(4)SSCB(NI)A 1992 is amended as follows.                  

(5)After section 18 insert—                  

#### “18AClass 4 contributions: partnerships

(1)The Treasury may by regulations—                  

(a)modify the way in which liabilities for Class 4 contributions of a partner in a firm are determined, or                  

(b)otherwise modify the law relating to Class 4 contributions,                  

as they consider appropriate to take account of the passing or making of a provision of the Income Tax Acts relating to firms                        or partners in firms.                  

(2)“Firm” has the same meaning as in the Income Tax (Trading and Other Income) Act 2005 (and includes a limited liability partnership                           in relation to which section 863(1) of that Act applies); and “partner” is to be read accordingly and includes a former partner.                  

(3)Regulations under this section may have retrospective effect; but they may not have effect before the beginning of the tax                           year in which they are made.”                  

(6)In section 172(11A) (parliamentary control: instruments subject to affirmative procedure), after “18,” insert “ 18A, ”.                  

(7)The amendments made by this section come into force at the end of the period of 2 months beginning with the day on which this                        Act is passed.                  

Commencement Information

I2S. 13 wholly in force at 13.5.2014; s. 13 in force at Royal Assent but the amendments made by this section come into force at 13.5.2014, see s. 13(7)

### 14Limited liability partnershipsU.K.

(1)SSCBA 1992 is amended as follows.                  

(2)After section 4A insert—                  

#### “4AALimited liability partnerships

(1)The Treasury may, for the purposes of this Act, by regulations—                  

(a)provide that, in prescribed circumstances—                  

(i)a person (“E”) is to be treated as employed in employed earner's employment by a limited liability partnership (including                           where E is a member of the partnership), and                  

(ii)the limited liability partnership is to be treated as the secondary contributor in relation to any payment of earnings to                           or for the benefit of E as the employed earner;                  

(b)prescribe how earnings in respect of E's employed earner employment with the limited liability partnership are to be determined                           (including what constitutes such earnings);                  

(c)provide that such earnings are to be treated as being paid to or for the benefit of E at prescribed times.                  

(2)Regulations under subsection (1) may modify the definition of “employee” or “employer” in section 163, 171, 171ZJ or 171ZS                           below as the Treasury consider appropriate to take account of any provision falling within subsection (1)(a) to (c).                  

(3)If—                  

(a)a provision of the Income Tax Acts relating to limited liability partnerships or members of limited liability partnerships                           is passed or made, and                  

(b)in consequence, the Treasury consider it appropriate for provision to be made for the purpose of assimilating to any extent                           the law relating to income tax and the law relating to contributions under this Part,                  

the Treasury may by regulations make that provision.                  

(4)The provision that may be made under subsection (3) includes provision modifying any provision made by or under this Act.                  

(5)Regulations under this section are to be made with the concurrence of the Secretary of State.                  

(6)Section 4(4) of the Limited Liability Partnerships Act 2000 does not limit the provision that may be made by regulations under                           this section.”                  

(3)In section 4B (power to make retrospective provision in consequence of retrospective tax legislation), in subsection (3),                        after paragraph (c) insert—                  

“(d)section 4AA (power to make provision in relation to limited liability partnerships)”.                  

(4)In section 10 (Class 1A contributions: benefits in kind etc), at the end, insert—                  

“(11)The Treasury may by regulations modify the law relating to Class 1A contributions in the case of an employed earner's employment                           which is treated as existing by virtue of regulations under section 4AA.”                  

(5)SSCB(NI)A 1992 is amended as follows.                  

(6)After section 4A insert—                  

#### “4AALimited liability partnerships

(1)The Treasury may, for the purposes of this Act, by regulations—                  

(a)provide that, in prescribed circumstances—                  

(i)a person (“E”) is to be treated as employed in employed earner's employment by a limited liability partnership (including                           where E is a member of the partnership), and                  

(ii)the limited liability partnership is to be treated as the secondary contributor in relation to any payment of earnings to                           or for the benefit of E as the employed earner;                  

(b)prescribe how earnings in respect of E's employed earner employment with the limited liability partnership are to be determined                           (including what constitutes such earnings);                  

(c)provide that such earnings are to be treated as being paid to or for the benefit of E at prescribed times.                  

(2)Regulations under subsection (1) may modify the definition of “employee” or “employer” in section 159, 167, 167ZJ or 167ZS                           below as the Treasury consider appropriate to take account of any provision falling within subsection (1)(a) to (c).                  

(3)If—                  

(a)a provision of the Income Tax Acts relating to limited liability partnerships or members of limited liability partnerships                           is passed or made, and                  

(b)in consequence, the Treasury consider it appropriate for provision to be made for the purpose of assimilating to any extent                           the law relating to income tax and the law relating to contributions under this Part,                  

the Treasury may by regulations make that provision.                  

(4)The provision that may be made under subsection (3) includes provision modifying any provision made by or under this Act.                  

(5)Regulations under this section are to be made with the concurrence of the Department.                  

(6)Section 4(4) of the Limited Liability Partnerships Act 2000 does not limit the provision that may be made by regulations under                           this section.”                  

(7)In section 4B (power to make retrospective provision in consequence of retrospective tax legislation), in subsection (3),                        after paragraph (c) insert—                  

“(d)section 4AA (power to make provision in relation to limited liability partnerships)”.                  

(8)In section 10 (Class 1A contributions: benefits in kind etc), at the end, insert—                  

“(11)The Treasury may by regulations modify the law relating to Class 1A contributions in the case of an employed earner's employment                           which is treated as existing by virtue of regulations under section 4AA.”                  

## Other provisionU.K.

### 15Office holders who receive “earnings” to be employed earnersU.K.

(1)In section 2(1)(a) of SSCBA 1992 (definition of “employed earner”), omit “general”.                  

(2)In section 2(1)(a) of SSCB(NI)A 1992 (definition of “employed earner”), omit “general”.                  

(3)Schedule 2 makes provision that is consequential upon office holders in receipt of “earnings” (as opposed to “general earnings”)                        being employed earners.                  

(4)The amendments made by this section and Schedule 2 come into force at the end of the period of 2 months beginning with the                        day on which this Act is passed.                  

Commencement Information

I3S. 15 wholly in force at 13.5.2014; s. 15 in force at Royal Assent but the amendments made by this section come into force at 13.5.2014, see s. 15(4)

### 16Armed Forces early departure payments retrospectively disregardedU.K.

Paragraph 10A of Part 6 of Schedule 3 to the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (payments under                     the Armed Forces Early Departure Payments Scheme Order 2005 (S.I. 2005/437) to be disregarded) also has effect for the tax                     years 2005-06 to 2012-13 inclusive.                  

### 17Repeal of certain redundant reliefs relating to Class 4 contributionsU.K.

(1)In Schedule 2 to SSCBA 1992 (levy of Class 4 contributions with income tax)—                  

(a)omit paragraph 3(3), and                  

(b)omit paragraph 9 (and the heading immediately before it).                  

(2)In Schedule 2 to SSCB(NI)A 1992 (levy of Class 4 contributions with income tax)—                  

(a)omit paragraph 3(3), and                  

(b)omit paragraph 9 (and the heading immediately before it).                  

(3)The amendments made by subsections (1)(a) and (2)(a) have effect for the tax year after the one during which this Act is passed                        and for subsequent tax years.                  

### 18Certain orders and regulations in respect of Northern IrelandU.K.

(1)Section 172 of SSCB(NI)A 1992 (Assembly etc control of regulations and orders) is amended as follows.                  

(2)In subsection (11), for “(9)” substitute “ (10) ”.                  

(3)In subsection (11B)—                  

(a)after “contains” insert “—                   

(a)”,

(b)after “129” insert “ or 142(7) ”, and                  

(c)after “Act” insert “,                   

(b)regulations under powers conferred by any provision mentioned in that subsection which are to be made for the purpose of consolidating                           regulations to be revoked in the instrument, or                  

(c)regulations which, in so far as they are made under powers conferred by any provision mentioned in that subsection, only replace                           provisions of previous regulations with new provisions to the same effect.”                  

(4)Section 165 of the Social Security Administration (Northern Ireland) Act 1992 (regulations and orders — general) is amended                        as follows.                  

(5)In subsection (1), after “to be made by” insert “ the Secretary of State, ”.                  

(6)In subsection (3), after “the Department” insert “ , the Secretary of State ”.                  

(7)The amendments made by this section come into force at the end of the period of 2 months beginning with the day on which this                        Act is passed.                  

Commencement Information

I4S. 18 wholly in force at 13.5.2014; s. 18 in force at Royal Assent but the amendments made by this section come into force at 13.5.2014, see s. 18(7)

## GeneralU.K.

### 19HMRC administrative expenses: financial provisionU.K.

(1)In section 165 of the Social Security Administration Act 1992 (adjustments between the National Insurance Fund and Consolidated                        Fund), in subsection (5)(a), after “adoption pay” insert “ or the National Insurance Contributions Act 2014 ”.                  

(2)In section 145 of the Social Security Administration (Northern Ireland) Act 1992 (adjustments between the National Insurance                        Fund and Consolidated Fund), in subsection (5)(a), after “adoption pay” insert “ or the National Insurance Contributions Act 2014 ”.                  

### 20Abbreviations of ActsU.K.

In this Act—
          -  “SSCBA 1992” means the Social Security Contributions and Benefits Act 1992;                         
          -  “SSCB(NI)A 1992” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.                         

### 21Short title and extentU.K.

(1)This Act may be cited as the National Insurance Contributions Act 2014.                  

(2)Subject to subsection (3), this Act extends to England and Wales, Scotland and Northern Ireland.                  

(3)An amendment or repeal made by this Act has the same extent as the provision amended or repealed.                  

# SCHEDULES

 Section 3

## SCHEDULE 1U.K.Employment allowance: rules for determining if persons are “connected”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 15

## SCHEDULE 2U.K.Office holders in receipt of “earnings” to be employed earners: consequential provision

### SSCBA 1992U.K.

1U.K.SSCBA 1992 is amended as follows.

Commencement Information

I5Sch. 2 para. 1 wholly in force at 13.5.2014; Sch. 2 para. 1 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

2U.K.In section 7(1)(b) (definition of “secondary contributor” in relation to office holders), omit “general” in both places it appears.

Commencement Information

I6Sch. 2 para. 2 wholly in force at 13.5.2014; Sch. 2 para. 2 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

3U.K.In section 163(1) (interpretation of Part 11 of that Act: statutory sick pay), in paragraph (a) of the definition of “employee”,                        for “general earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I7Sch. 2 para. 3 wholly in force at 13.5.2014; Sch. 2 para. 3 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

4U.K.In section 171(1) (interpretation of Part 12 of that Act: statutory maternity pay), in paragraph (a) of the definition of                        “employee”, for “general earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute                        “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I8Sch. 2 para. 4 wholly in force at 13.5.2014; Sch. 2 para. 4 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

5U.K.In section 171ZJ(2)(a) (definition of “employee” for Part 12ZA of that Act: ordinary and additional statutory paternity pay),                        for “general earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I9Sch. 2 para. 5 wholly in force at 13.5.2014; Sch. 2 para. 5 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

6U.K.In section 171ZS(2)(a) (definition of “employee” for Part 12ZB of that Act: statutory adoption pay), for “general earnings                        (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I10Sch. 2 para. 6 wholly in force at 13.5.2014; Sch. 2 para. 6 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

### SSCB(NI)A 1992U.K.

7U.K.SSCB(NI)A 1992 is amended as follows.

Commencement Information

I11Sch. 2 para. 7 wholly in force at 13.5.2014; Sch. 2 para. 7 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

8U.K.In section 7(1)(b) (definition of “secondary contributor” in relation to office holders), omit “general” in both places it appears.

Commencement Information

I12Sch. 2 para. 8 wholly in force at 13.5.2014; Sch. 2 para. 8 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

9U.K.In section 159(1) (interpretation of Part 11 of that Act: statutory sick pay), in paragraph (a) of the definition of “employee”,                        for “general earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I13Sch. 2 para. 9 wholly in force at 13.5.2014; Sch. 2 para. 9 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

10U.K.In section 167(1) (interpretation of Part 12 of that Act: statutory maternity pay), in paragraph (a) of the definition of                        “employee”, for “general earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute                        “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I14Sch. 2 para. 10 wholly in force at 13.5.2014; Sch. 2 para. 10 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

11U.K.In section 167ZJ(2)(a) (definition of “employee” for Part 12ZA of that Act: ordinary and additional statutory paternity pay),                        for “emoluments chargeable to income tax under Schedule E” substitute “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I15Sch. 2 para. 11 wholly in force at 13.5.2014; Sch. 2 para. 11 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

12U.K.In section 167ZS(2)(a) (definition of “employee” for Part 12ZB of that Act: statutory adoption pay), for “emoluments chargeable                        to income tax under Schedule E” substitute “ earnings (within the meaning of Parts 1 to 5 above) ”.

Commencement Information

I16Sch. 2 para. 12 wholly in force at 13.5.2014; Sch. 2 para. 12 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

### Pension Schemes Act 1993 (c. 48)U.K.

13U.K.In section 181(1) of the Pension Schemes Act 1993 (general interpretation), in the definition of “employee”, for “general                        earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute “ earnings ”.

Commencement Information

I17Sch. 2 para. 13 wholly in force at 13.5.2014; Sch. 2 para. 13 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)

### Pension Schemes (Northern Ireland) Act 1993 (c. 49)U.K.

14U.K.In section 176(1) of the Pension Schemes (Northern Ireland) Act 1993 (general interpretation), in the definition of “employee”,                        for “general earnings (as defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)” substitute “ earnings ”.

Commencement Information

I18Sch. 2 para. 14 wholly in force at 13.5.2014; Sch. 2 para. 14 in force at Royal Assent but the amendments made by this provision come into force at 13.5.2014, see s. 15(4)