This House of Lords Library Briefing has been prepared in advance of the second reading in the House of Lords of the National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill, scheduled to take place on 26 June 2019.
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The National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill is a government bill that would amend the national insurance treatment of termination awards and income from sporting testimonials.
It would introduce a new 13.8% Class 1A Employer national insurance contributions (NICs) charge to any part of a termination award or payment from a sporting testimonial that is already liable to income tax.
The bill was introduced in the House of Commons on 25 April 2019 and completed its stages in the Commons, without amendment, on 10 June 2019.
During the House of Commons stages, both Labour and the Scottish National Party (SNP) opposed the bill. Labour argued that the bill was an attempt by the Government to introduce measures aimed at raising additional revenue from the termination payments of workers. Whilst the SNP called for the bill to include a requirement on the Government to review the impact of the measure.
The bill was introduced into the House of Lords on 11 June 2019 and is scheduled to receive its second reading on 26 June 2019.