National Insurance contributions: UK Continental Shelf workers (Secondary Class 1)
Published 31 October 2016
© Crown copyright 2016
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Who is likely to be affected
Employers or workers employed on the UK Continental Shelf (UKCS).
General description of the measure
This is a minor amendment to regulation 114 of the Social Security (Contributions) Regulations 2001 (SSCR). Regulation 114 cross-references two sets of regulations from 1997. These are:
- the Merchant Shipping (Safe Manning, Hours of Work and Watchkeeping) Regulations 1997
- the Merchant Shipping (Training and Certification) Regulations 1997
Both of these 1997 regulations have been superseded by a new regulation, the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015. This change is to ensure that regulation 114 works as intended, by updating the cross-references so that they refer to current rather than obsolete legislation.
Policy objective
The objective behind this change is to ensure that regulation 114 SSCR works as intended, by updating cross-references so that these point to current rather than obsolete legislation.
Background to the measure
On 6 April 2014 changes were made to the SSCR regarding secondary Class 1 National Insurance (NICs) liabilities for employers of UKCS workers. These were designed to identify a secondary contributor for UKCS workers and ensure that these employers paid secondary (employers) Class 1 NICs. These changes can be found in paragraph 4 of regulation 114 of SSCR.
Employers of certain UKCS workers who hold a certificate from the Department for Transport are exempt from paying secondary (employers) Class 1 NICs for those workers, provided certain conditions are met. These conditions are laid out in paragraph 5 of regulation 114 of SSCR. Paragraphs 5 and 6 of regulation 114 of the SSCR refer to two sets of 1997 regulations.
Both 1997 regulations were superseded by the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015. This measure will update regulation 114 so that it reflects the provisions of the 2015 regulation instead.
Detailed proposal
Operative date
The changes made by this measure will have effect from November 2016. This is because the Department for Transport have retained transitional arrangements (in respect of certificates issued under the 1997 regulations). These arrangements are provided for under regulation 56 of SI 2015/782, but will cease in January 2017.
Current law
Current law is included in regulation 114 SSCR. This cross-references the Merchant Shipping (Safe Manning, Hours of Work and Watchkeeping) Regulations 1997 and the Merchant Shipping (Training and Certification) Regulations 1997.
Both the 1997 regulations have been superseded by the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015.
Proposed revisions
Regulations will be made to update paragraph 5 and 6 of regulation 114 of the SSCR so that these cross-reference the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015.
Summary of impacts
Exchequer impact (£m)
| 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 |
|---|---|---|---|---|
| nil | nil | nil | nil | nil |
This measure is not expected to have an Exchequer impact.
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
This measure is a clarification and is designed to ensure the legislation implements the policy as announced. The measure is not expected to impact on individuals, households or family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be any significant impacts on groups with protected characteristics as a result of these changes.
Impact on business including civil society organisations
This measure is expected to have no impact on businesses or civil society organisations as the change will reflect the existing regulations.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
As this is a minor technical correction, we will not be carrying out any further monitoring and evaluation in addition to that which is already in place.
Further advice
If you have any questions about this change, please contact Emma Barker on Telephone: 03000 586778 or email: emma.robinson3@hmrc.gsi.gov.uk.
Declaration
Jane Ellison MP, Financial Secretary to the Treasury has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.