Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Wednesday, 13 July 2011.

National Insurance

Question: To ask Her Majesty’s Government what they estimate to be the total annual national insurance contributions not charged to seconded workers on intra-company transfers and their employers because of the 52-week exemption in regulation 145 of the Social Security (Contributions) Regulations 2001; and how many such employees obtained visas for admission to the United Kingdom last year.

Answer: I refer the noble Lord to the Answers I gave him on 16 November 2010 (col. WA 196) and 2 December 2010 (col. WA 484), which explain why non-European Economic Area workers are allowed a 52-week exclusion from national insurance contributions. Workers from countries outside the European Economic Area, with which the UK has no bilateral agreements, may benefit from a 52-week exclusion from national insurance contributions, by virtue of Regulation 145(2) or (3) of the Social Security (Contributions) Regulations 2001, provided they meet the statutory conditions. The current exclusion is designed to keep temporary visiting workers, students and apprentices out of the UK social security scheme. Information on the amount of national insurance contributions (NICs) foregone due to this exemption is not available. An estimate of the number of such workers is also not available. It would add unnecessarily to the burdens on businesses and be inconsistent with the current approach to other exemptions and disregards that apply to NICs, to require employers to send information to HM Revenue and Customs about this exemption.

Secondary information

Type: Written question
Reference: 10829; 729 c188-9WA
Session: 2010-12
Related items: Visas
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Written questions
House of Lords; National Insurance
Thursday, 2 December 2010
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Thursday, 11 August 2011
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Subjects: Exemptions National insurance contributions Migrant workers Visas Multinational companies
Link: View this Written question on www.publications.parliament.uk