Introduction
1.These Explanatory Notes relate to the National Insurance Contributions Act 2011 which received Royal Assent on 22 March 2011. They have been prepared by HMRC in order to assist the reader in understanding the Act. They do not form part of the Act and have not been endorsed by Parliament.
2.These notes need to be read in conjunction with the Act. They are not, and are not meant to be, a comprehensive description of the Act. If a section or part of a section does not seem to require any explanation or comment, none is given.
Structure of these notes
3.These notes begin with a brief overview of National Insurance contributions (NICs) and the measures contained in the Act. Part 1 covers the increase in rates of Class 1 and Class 4 NICs and the destination of the increased product of the additional rates. Part 2 covers the Regional Secondary Contributions Holiday for New Businesses (the Holiday). Part 3 contains general provision concerning abbreviations, commencement, extent and short title. Annex A is a glossary of terms used in these notes.
