HMRC have published draft regulations relating to the offshore intermediary policy and draft employment allowance arrangements, required for Clauses 11 and 4 respectively of the National Insurance Contributions (NICs) Bill, for comment.

The draft statutory instrument, The Social Security (Categorisation of Earners) (Contributions) (Amendment) Regulations 2014, introduces a certification scheme for workers on the UK continental shelf where someone other than the secondary contributor discharges the National Insurance liability on their behalf.

The regulations, which are intended to come into force from 6 April 2014, mirror provisions with regards to who has to operate PAYE in respect of these workers and a similar certification scheme for PAYE are intended to be enacted through Finance Bill 2014 and are also intended to come into force from 6 April 2014.

The draft regulations also include other changes necessary to deliver the overall offshore intermediary policy.

The draft HMRC arrangements detail how employers qualifying for employment allowance may receive it from 6th April 2014. The arrangements provide that persons qualifying for the allowance may make deductions against their qualifying payments (secondary Class 1 contributions, which are not excluded liabilities under clause 2) on a single Pay As You Earn (PAYE) scheme during the tax year.

It also sets out how employers should provide notice to HMRC of their intention to claim the employment allowance by providing details of the PAYE scheme from which they want to deduct the allowance.

The regulations additionally specify how an employer may change their notice for a second or subsequent tax year and set out what an employer must do if, having claimed the employment allowance, they discover in the tax year that they do not qualify for an employment allowance.

More details are available HERE