The government intends to bring forward a legislative change to mandate employers operating in a Freeport or Investment Zone special tax site to provide their employee’s workplace postcode to HMRC if they are claiming the relevant secondary Class 1 National Insurance contributions (NICs) relief through their payroll, in due course. The relief is conditional on 60% of the employee’s working time being in the tax site. The collection of this data, which employers should readily hold, will help reduce employer error and enable assurance of claims by HMRC without generally requiring HMRC contacting the employer. The government is publishing a four-week technical consultation on draft regulations. Following the consultation, secondary legislation will be brought forward in due course, allowing software developers time to make the changes ahead of implementation.
Consultation on mandating postcode provision for Freeports and Investment Zones NICs reliefs