· The Social Security (Contributions) (Amendment) (No 2) Regulations, SI 2016/352, introduce a number of NICs changes from 6 April 2016, which correspond to income tax changes included in Finance Acts, following extensive consultation on measures to simplify the treatment of employee benefits and expenses. The regulations provide for: (1) Class 1 NICs on expenses reimbursed to employees as part of salary sacrifice arrangements or at a rate not approved by HMRC; (2) Class 1 NICs on home-to-work travel and subsistence payments to workers engaged through employment intermediaries; (3) a NICs disregard for home-to-work travel expenses of local authority councillors; (4) penalties for ‘extended failure’ to file NICs returns; and (5) removal of various NICs reporting rules for employers to reflect abolition of the contracted-out rebate.
· The Social Security (Contributions) (Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations, SI 2016/343, give effect to the annual uprating of Class 1 and Class 4 NICs to apply from 6 April 2016. They specify the new: Class 4 NICs upper profits limit; Class 1 NICs upper earnings limit; Class 1 NICs upper secondary threshold for employees under 21; and apprentice upper secondary threshold for apprentices under 25.
· The Employment Allowance (Excluded Companies) Regulations, SI 2016/344, introduce an exclusion to prevent companies whose director is also their sole employee from qualifying for the NICs employment allowance with effect from 6 April 2016. The employment allowance enables eligible employers to claim up to £3,000 against their secondary Class 1 NICs liability in 2016/17.
· The Social Security (Contributions) (Amendment) (No 2) Regulations, SI 2016/352, introduce a number of NICs changes from 6 April 2016, which correspond to income tax changes included in Finance Acts, following extensive consultation on measures to simplify the treatment of employee benefits and expenses. The regulations provide for: (1) Class 1 NICs on expenses reimbursed to employees as part of salary sacrifice arrangements or at a rate not approved by HMRC; (2) Class 1 NICs on home-to-work travel and subsistence payments to workers engaged through employment intermediaries; (3) a NICs disregard for home-to-work travel expenses of local authority councillors; (4) penalties for ‘extended failure’ to file NICs returns; and (5) removal of various NICs reporting rules for employers to reflect abolition of the contracted-out rebate.
· The Social Security (Contributions) (Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations, SI 2016/343, give effect to the annual uprating of Class 1 and Class 4 NICs to apply from 6 April 2016. They specify the new: Class 4 NICs upper profits limit; Class 1 NICs upper earnings limit; Class 1 NICs upper secondary threshold for employees under 21; and apprentice upper secondary threshold for apprentices under 25.
· The Employment Allowance (Excluded Companies) Regulations, SI 2016/344, introduce an exclusion to prevent companies whose director is also their sole employee from qualifying for the NICs employment allowance with effect from 6 April 2016. The employment allowance enables eligible employers to claim up to £3,000 against their secondary Class 1 NICs liability in 2016/17.
