Clause 1 - Payment of Class 1 contributions: Great Britain
National Insurance Contributions and Statutory Payments Bill
10:00 am
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
Where an employer had withheld a proportion of the shares to cover liability, the only dispute that could arise would presumably be the employee saying, ''I want those shares back,'' or, ''That was not a fair representation of the liability.'' As the liability for national insurance can be easily calculated, and given the tables published on the values, the employee should be in full knowledge, so I do not really understand the point of the hon. Gentleman's question.
The clause provides a protection for the employer to ensure that their liability is covered. They do not have to take it all in one go and perhaps thereby cause a cash-flow problem for the employee, but equally they are not faced with having to cover the cost in instalments over a number of months, perhaps when the employee is no longer working for the company. The share option of retaining for the value covers the hon. Gentleman's point, so it is difficult to see where other disputes could arise. However creative in tax planning the financial industry is, we shall of course keep an eye on the situation.
Question put and agreed to.
Clause 1 ordered to stand part of the Bill.