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NIC Bill completes passage through Lords

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The National Insurance Contributions Bill 2014/15 has now completed its passage through the House of Lords. Final amendments were made during its third reading, primarily relating to zero-rating secondary class 1 NICs for apprentices under the age of 25. The Bill must now return to the House of Commons for consideration of the amendments although royal assent can still be expected to be obtained before the end of this parliament.

Draft regulations (The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations, SI 2015/Draft) specify the class 1 NICs lower and upper earnings limits and primary and secondary thresholds for the tax year beginning 6 April 2015. This includes the new upper secondary threshold, above which employers must cease to use the 0% age-related secondary percentage for employees under the age of 21.

A draft order (The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order, SI 2015/Draft) order specifies the rates and relevant earnings limits for class 3 and class 4 NICs for the tax year beginning on 6 April 2015. These rates were announced in the Autumn Statement on 3 December 2014. The class 2 NICs rate and small profits threshold for tax years 2015/16 onwards are set out in the National Insurance Contributions Bill, which provides for the collection of class 2 NICs through self-assessment.