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Peter Arrowsmith FCA comments on a selection of NIC matters, and highlights a 'fast track' process for obtaining a National Insurance Number for some UK arrivals

New Statutory Instruments

The Social Security (Contributions) (Amendment No. 2) Regulations 2008 (SI 2008/607) extend to April 2012 the date from which the penalty rate of Class 3 or Class 2 contributions paid voluntarily for 2005/06 will apply where the contributor does not reach state pension age until 6 April 2010 or later. This is because deficiency notices for 2005/06 have not yet been issued to many such people nor can pension forecasts currently be obtained.

The same regulations also provide exception from Class 1 liability where -

• fuel (or non cash vouchers for fuel) is provided for a van in respect of which a taxable fuel benefit arises (from 6 April 2008, though the change should have been made from 2005 and was overlooked),
• from 1 April 2008, Council Tax Relief payments are made by the Secretary of State for Defence to members of HM Forces deployed to specified operational locations,
• from 6 April 2008, payments are made from the In-Work Emergency Discretion Fund in Great Britain or from the In-Work Emergency Fund in Northern Ireland (these are new payments to lone parents to help them overcome financial barriers that might otherwise make it difficult for them to remain in work).

The Social Security (Contributions) (Re-rating) Order 2007 (SI 2008/579) duly makes the changes to Class 2, Class 3 and Class 4 rates and limits as announced last October. The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2008 (SI 2008/703) similarly fixes the new share fishermen's Class 2 rate.

The Social Security (Contributions) (Amendment No. 3) Regulations 2008 (SI 2008/636) introduce two changes. They apply the new penalty regime for PAYE (Finance Act 2007, Sch 24) to Class 1 contributions as regards returns to be made for periods commencing on or after 1 April 2008 and where the filing date is on or after 1 April 2009. They also make changes to the 2001 Regs to enable HMRC to specify, certify, charge interest on and enforce on an employer, a single amount of debt (which may include PAYE, CIS payments and Student Loan repayments as well as National Insurance contributions). This is a consequence of the perhaps long overdue decision that from 6 April 2008, employers are not required (whatever the payment method) to split their monthly (or, in some cases, quarterly) remittances between tax and NIC.

2008/09 Deferment claims

Application forms and guidance notes can be obtained from www.hmrc.gov.uk/individuals/fgcat-deferment.shtml

Medical Check-ups

Further to my reports last year, you may have noted the absence of any announcement on this subject on Budget day. But a few days afterwards, HM Revenue and Customs announced that the procedures for 2007/08 will continue into 2008/09.

Benefits increased

The Social Security Benefits Up-rating Order 2008 (SI 2008/632) increases benefits to the rates announced last December from, in the main, 7 April 2008. Note however that Statutory Payments are increased from different April dates.

Tip of the Month - April 2008

Some employers taking on foreign workers new to the UK may be able to help such new employees short cut the usual procedure for obtaining a National Insurance Number (NINO). They include those employees who are applying for a work permit under the Business and Commercial Scheme (Tier 1 or Tier 2) - they can use the still relatively new NINO application fast path.

This means that instead of personal interviews for the employee(s) at a Jobcentre Plus, Jobcentre or social security office a postal NINO application form can be completed instead. The same applies in the case of NHS professionals who are recruited from overseas and also certain EU nationals working in the UK for an employer using the work permit process and who are employed in categories compatible with work permit holders in the Business and Commercial Sector Tier 1 or Tier 2. Employers - or agents on their behalf - requiring further information on the fast path schemes should contact:

Fast Path Internet Enquiries
CCU Admin Team
5th Floor
Portcullis House
21 India Street
Glasgow
G2 4PH

Telephone: 08456 415047/8/9
Fax: 08456 415037
Email: glasgow.ccufastpathadmin@jobcentreplus.gsi.gov.uk

NB: These contact details are for use only in respect of fast path applications.

The above is taken from 'NIC Newsletter' (01/04/2008), and is reproduced with the kind permission of Peter Arrowsmith FCA, who retains the copyright.