E8.1162 Earnings subject to retrospective tax legislation
Where earnings are brought into the charge to income tax retrospectively by anti-avoidance legislation, provision is made for a corresponding national insurance charge to arise1. Earnings brought within the national insurance charge in consequence of such provision ('retrospective earnings') also give rise to other adjustments, as set out below.
Effect on benefits
Class 1 contributions in respect of the retrospective earnings which remain unpaid otherwise than due to the consent or connivance or negligence of the employee concerned, are treated for benefit purposes as properly paid2.
For cases discussing whether non-payment was attributable to 'the consent or connivance or negligence of the employee concerned', see Wood, Tracey, Broughton-Head 3.
Recovery by employer
The employer may deduct employee's Class 1 contributions in respect of the retrospective earnings from any payment of earnings made by them to that employee4:
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•ÌýÌýÌýÌý after the regulations by which the retrospective earnings were brought into charge come into force and during
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