These regulations make provision for amounts chargeable to income tax under Chapter 2 of Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) to be treated as earnings for the purposes of National Insurance contributions (NICs) if they would not already be earnings for NICs purposes. They include provision to prevent a double liability for NICs on such amounts.
Where these regulations apply ordinary NICs principles will apply to the collection of NICs. As a consequence there will be two aspects of the income tax treatment of amounts chargeable under Part 7A which will not be fully aligned with the corresponding NICs treatment:
HM Revenue & Customs (HMRC) have published draft regulations for comment and these can be accessed from the link below.
If you have any questions or comments about any of these draft regulations, please email these to PA Harris by Friday 23 September 2011, or write to:
HM Revenue & Customs
Employment Income Policy Team
100 Parliament Street
London SW1A 2BQ
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