Queen's Speech 2013: National insurance contributions bill

The national insurance contributions bill is designed to reduce the costs of employment for small businesses and fight against abusive tax schemes.

The bill will

  • Introduce a new £2,000 Employment Allowance for every business and charities from April 2014, which will reduce the amount employers pay in national insurance contributions (NICs).
  • Extend the general anti-abuse rules to cover NICs, and help to tackle tax avoidance
  • Prevent the use of offshore employment payroll companies to avoid employers having to pay NICs
  • And it will remove the presumption that limited liability partnership members are treated as self-employed, which is seen as a tax loophole