This Bill aims to align the NICs treatment of income from sporting testimonials with the tax treatment by:
• bringing payments from sporting testimonials that are non-contractual or non-customary and organised by an independent testimonial committee within the scope of Class 1A NICs • applying the existing £100,000 Income Tax exemption to the NICs treatment • ensuring the new NICs threshold will apply to only one testimonial in a lifetime, which could come from one event or a series of events held over a 12 calendar month ‘testimonial year’
Income Tax changes were made in the Finance Act 2016 and took effect from 6 April 2017.
Regulations have yet to be laid that will enact this provision, but in the meantime a summary of the bill has been provided in guidance on NICs Termination Payments and Sporting Testimonials Bill.
If you have any questions about the Bill they can be submitted to HMRC by email to consultation.nic@hmrc.gsi.gov.uk
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Proposals for over-50s to pay extra National Insurance to cover social care 3 May 2019
A social care green paper commissioned by the Rt Hon Damian Green MP suggests a range of methods to fill the immediate funding gap in the social care system, one of which is to impose a 1% National Insurance surcharge on those over 50. The new report, ‘Fixing the Care Crisis’ for the Centre for Policy Studies, was commissioned by the First Secretary of State, Rt Hon Damian Green MP. It puts forward a bold and comprehensive proposal to secure the future of social care. The report argues that the care system should adopt the model of the state pension – with the Government providing enough support for a decent standard of care via a new Universal Care Entitlement, while encouraging and incentivising people to top up this provision from their savings or housing wealth via a Care Supplement. It also suggests a range of methods to fill the immediate funding gap in the social care system, estimated at approximately £2.75 billion. These include, in decreasing order of preference: • Taxing the winter fuel allowance • Diverting savings from the Spending Review • Potentially imposing a 1% National Insurance surcharge on those over 50
Under Damien Green’s proposals, a basic level of state-funded social care would be provided, with improvements paid for from individual’s savings or their housing wealth.
According to The Times Labour have branded the plans, which would cost more than £300 per year for each over-50- year-old, a “tax on getting old”.
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How to quickly confirm National Insurance numbers 26 June 2019
When taking on a new employee you will need to know their National Insurance (NI) number and if the employee doesn’t know it, the quickest way to obtain it is to ask them to use the HMRC App or their personal tax account (PTA) where they can view, print proof and share an image of their NI number.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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