Part 1: Secondary Class 1 Contributions Freeports Section 1: Zero-rate contributions for employees at freeport tax sites: Great Britain
Section 1(1) states that this relief applies when secondary Class 1 NICs are due from an employer other than a public authority and the conditions set out in section 2 are met. The term "public authority" is defined in section 13 of the Act. This section also specifies that an employer must elect to apply this relief in circumstances where they may also qualify for other NICs reliefs (under 21, under 25 apprentices and armed forces veterans).
	Section 1(2)(a) states that the rate for this relief is 0% and applies up to the Upper Secondary Threshold (UST).
	Section 1(2)(b) states that for earnings above the UST, the secondary percentage NICs rate (currently 13.8%) applies.
	Section 1(3) states that the UST (or the prescribed equivalent) will be set by statutory instrument under a power at section 8.
	Section 1(4) states that a person is still regarded as liable for secondary Class 1 NICs even though the amount of the contribution is nil because the secondary percentage is 0%. This provision ensures that, whilst the requirement to pay secondary Class 1 NICs in respect of relevant earnings paid to Freeport employees is removed, liability for such contributions remains. As a result, the new zero-rate does not affect other legislation which relies on the existence of a secondary contributor, including the obligation to make statutory payments to employees such as Statutory Sick Pay and Statutory Maternity Pay.
	This relief is administered through PAYE and Real Time Information (RTI) returns, thus providing a real time relief. Section 1(5) and section 1(6) provide the Treasury with the power to make provisions about circumstances where this relief would not apply until the tax year has ended.