Child Support, Pensions and Social Security Bill — Contributions in Respect of Benefits in Kind: Great Britain — 3 Apr 2000

As amended in the Standing Committee, further considered.

I beg to move amendment No. 62, in page 68, line 37, at end insert--

'( ) Nothing in this section shall apply to any childcare provision by the employer, which shall be exempt from Class 1A National Insurance contributions.'.

The trigger for the change is the taxation of the benefit in kind, not the other way round. The national insurance does not cause the tax to be paid; the tax causes the national insurance to be paid.--[ Official Report, Standing Committee A , 2 March 2000; c. 675.]

To encourage employers to help employees with childcare, all provision in kind will remain exempt from employer class 1A national insurance contributions when these are extended to other employee benefits from April 2000.

This employer NICs exemption will apply to direct provision, childcare vouchers and payments under contracts between employers and third party providers.

Taxation is not neutral in the way it raises revenue. How and what governments tax sends clear signals about the economic activities they believe should be encouraged or discouraged, and the values they wish to entrench in society.

Question put, That the amendment be made:--

The House divided: Ayes 143, Noes 265.

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Party Summary

Votes by party, red entries are votes against the majority for that party.

What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.

What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.

What is Turnout? This is measured against the total membership of the party at the time of the vote.

PartyMajority (No)Minority (Aye)BothTurnout
Con0 117 (+2 tell)074.4%
Independent1 0033.3%
Lab264 (+2 tell) 0063.9%
LDem0 24052.2%
PC0 2050.0%
Total:265 143065.5%

Rebel Voters - sorted by party

MPs for which their vote in this division differed from the majority vote of their party. You can see all votes in this division, or every eligible MP who could have voted in this division

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no rebellions

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