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NIC Bill awaits royal assent

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The Bill was given its third reading by the House of Lords on 25 February 2014. It now awaits royal assent. The Bill extends the application of the GAAR to NIC so that abusive NIC arrangements are caught by the GAAR. New provisions on offshore employment intermediaries render UK based intermediaries (who have arranged for the work in the UK) liable to employer NIC in the event that the offshore employer defaults. Additionally, by removing the presumption of self-employment for some members of limited liability partnerships (LLPs), the Bill enables the reclassification of certain LLP members as employed earners for NIC purposes. Finally, the Bill makes it clear that in order to be regarded as an employed earner, an office holder has to be in receipt of ‘earnings’ as defined for NIC purposes (as opposed to ‘general earnings’) and gainfully employed in Great Britain. The Bill contains other minor changes.