The CIOT has responded to HMRC’s consultation on the draft Social Security Contributions (Freeports) Regulations 2022 which will provide exemptions from the requirement that an employee spend 60% of their working time in a freeport tax site, where adjustments to their working patterns are made in protected circumstances, such as disability, maternity and pregnancy. CIOT suggestions include:
the proposed ‘period of maternity’ should be extended from 26 weeks to 52 weeks, as it is more likely that an employee who had recently given birth would be working during the period of ‘additional maternity leave’ and require adjustments to working arrangements;
clarification around the qualifying period would be helpful – particularly whether that period begins with ‘the start of the employment’ or ‘a substantial change in the earner’s working arrangements’ (NICs Bill clause 2(3)(a));
it would be helpful to confirm that an engagement can qualify for the freeports exemption where an adjustment is made to accommodate an employee’s disability after the employment has commenced;
clarification around the application of the regulations to adoption leave; and
clarification as to whether relief will apply where the worker splits their time between two freeport tax sites where the employer has business premises.
The CIOT has responded to HMRC’s consultation on the draft Social Security Contributions (Freeports) Regulations 2022 which will provide exemptions from the requirement that an employee spend 60% of their working time in a freeport tax site, where adjustments to their working patterns are made in protected circumstances, such as disability, maternity and pregnancy. CIOT suggestions include:
the proposed ‘period of maternity’ should be extended from 26 weeks to 52 weeks, as it is more likely that an employee who had recently given birth would be working during the period of ‘additional maternity leave’ and require adjustments to working arrangements;
clarification around the qualifying period would be helpful – particularly whether that period begins with ‘the start of the employment’ or ‘a substantial change in the earner’s working arrangements’ (NICs Bill clause 2(3)(a));
it would be helpful to confirm that an engagement can qualify for the freeports exemption where an adjustment is made to accommodate an employee’s disability after the employment has commenced;
clarification around the application of the regulations to adoption leave; and
clarification as to whether relief will apply where the worker splits their time between two freeport tax sites where the employer has business premises.
