– Extending the disclosure of NICs avoidance arrangements powers: regulations to extend the scope of the disclosure powers in SSAA 1992 s 132A, to enable reporting requirements to be imposed specifically in relation to arrangements which seek to avoid NICs (effectively unlinking the NICs powers from the equivalent DOTAS tax provisions) are expected to be made in 2022.
– Zero rate contributions for employees at freeport tax sites – power to define cases where relief does not apply until tax year end: in some cases HMRC will not be able to apply relief in real time, and a claim will need to be made at the end of the tax year. This will be a timing change rather than any change to the amount of relief. Regulations will introduce the end-of-year claim; the regulations are expected to be made in spring 2022 to have effect from April 2022. Regulations will also be made to set the upper secondary threshold to limit earnings to which the zero rate of secondary Class 1 contributions will apply (expected to be £25,000 from April 2022).
The Bill also includes a power to extend the relief until 5 April 2031 (from 5 April 2026); the paper notes that a decision on extending the relief will be taken after a review of the policy, and also points out that, even if the period ends on 5 April 2026, any new hires made before that date will qualify for the full 36-month period of relief (meaning that an employee hired on 5 April 2026 will qualify until 5 April 2029).
– Freeport qualifying conditions: employees must spend 60% of their employed time in the freeport, and the government is considering whether to deem this 60% condition as having been met in particular circumstances – for example where certain groups of employees with protected characteristics may not be able to meet the 60% threshold because of reasonable adjustments which allow them to work from home.
– Zero rate contributions for armed forces veterans: regulations will also set out cases in which relief will need to be claimed by the employer at the end of the tax year. The government is also considering whether to extend the period during which relief will be available.
– Extending the disclosure of NICs avoidance arrangements powers: regulations to extend the scope of the disclosure powers in SSAA 1992 s 132A, to enable reporting requirements to be imposed specifically in relation to arrangements which seek to avoid NICs (effectively unlinking the NICs powers from the equivalent DOTAS tax provisions) are expected to be made in 2022.
– Zero rate contributions for employees at freeport tax sites – power to define cases where relief does not apply until tax year end: in some cases HMRC will not be able to apply relief in real time, and a claim will need to be made at the end of the tax year. This will be a timing change rather than any change to the amount of relief. Regulations will introduce the end-of-year claim; the regulations are expected to be made in spring 2022 to have effect from April 2022. Regulations will also be made to set the upper secondary threshold to limit earnings to which the zero rate of secondary Class 1 contributions will apply (expected to be £25,000 from April 2022).
The Bill also includes a power to extend the relief until 5 April 2031 (from 5 April 2026); the paper notes that a decision on extending the relief will be taken after a review of the policy, and also points out that, even if the period ends on 5 April 2026, any new hires made before that date will qualify for the full 36-month period of relief (meaning that an employee hired on 5 April 2026 will qualify until 5 April 2029).
– Freeport qualifying conditions: employees must spend 60% of their employed time in the freeport, and the government is considering whether to deem this 60% condition as having been met in particular circumstances – for example where certain groups of employees with protected characteristics may not be able to meet the 60% threshold because of reasonable adjustments which allow them to work from home.
– Zero rate contributions for armed forces veterans: regulations will also set out cases in which relief will need to be claimed by the employer at the end of the tax year. The government is also considering whether to extend the period during which relief will be available.
