§ Mr. Wainwright
asked the Secretary of State for Social Services to what extent remuneration of employees by way of profit-sharing is exempt from employers' and employees' national insurance contributions.
§ Mr. Major
Profits distributed by way of bonuses form part of normal earnings and are therefore liable for national insurance contributions. The Social Security (Contributions) Regulations 1979 specify conditions under which profits distributed through trust funds or certain profit-sharing schemes are disregarded for the purposes of National Insurance contributions.