Effects of termination awards provisions

Part of National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill – in the House of Commons at 7:32 pm on 10th June 2019.

Alert me about debates like this

Photo of Robert Jenrick Robert Jenrick The Exchequer Secretary 7:32 pm, 10th June 2019

I beg to move, That the Bill be now read the Third time.

I am grateful to all the right hon. and hon. Members who participated throughout the passage of the Bill, particularly in Committee. I thank the Committee’s Chairs, my hon. Friend Sir Henry Bellingham and Siobhain McDonagh.

This is a small and narrowly drawn but none the less important Bill that continues the Government’s aim of aligning tax and national insurance contributions where it is right to do so. The Bill aligns the employer national insurance contribution treatment of termination awards and sporting testimonials with the current tax treatment. It also raises about £200 million a year for the public finances.

As I mentioned in previous debates, the Bill has been expected for some time. The measures were first announced at Budget 2015, consulted on thereafter and so have been widely expected and subjected to a great deal of scrutiny. The effect of the changes in the Bill will mean that a 13.8% class 1A employer national insurance charge will be applied to income derived from termination awards and sporting testimonials that are already subject to income tax.

I would like to reiterate my thanks to hon. Members who participated in the debates. I thank my superb officials at HM Treasury and Her Majesty’s Revenue and Customs, whose patience and professionalism never ceases to impress me. I commend the Bill to the House.