National Insurance Contributions Bill

New Section 4C(2) enables regulations to be laid which, among other things, relate to the payment and recoverability of additional primary contributions that become payable. HMRC will shortly publish draft regulations which will be subject to the 12-week consultation period. That deals with the timing issue. These will set out how contributions are to be paid and recovered. There will be no employer right of recovery of NICs for employees who have left the relevant employment. We believe that such a right would be impractical. The restrictions on employers’ rights of recovery mirror generally the existing provisions on recovery, which similarly do not extend to individuals who have left the employer’s employ. The justification for that was provided by the noble Lord, Lord Newby, in that employers know what they are about when they enter into these avoidance arrangements, and that is an added risk that they take. On that basis, I ask the noble Baroness to withdraw the amendment. I apologise to the noble Lord, Lord Newby, for his late receipt of the letter. If the noble Baroness has not received it, I apologise for that. I shall ensure that it arrives quickly. The letter reiterates the point that I have just made.