Summary and Background Oil and gas workers on the Continental Shelf
14.At Budget 2013 the Chancellor announced that the Government would strengthen legislation in respect of offshore employment intermediaries. The measure is, in part, intended to address avoidance schemes in the oil and gas industry involving employers of oil and gas workers (who are working on the UK Continental Shelf) that are located outside the UK. This will be addressed largely by means of using existing powers (mainly contained in section 120 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)) and the Act supplements those powers so as to include new certification provisions. The Social Security (Contributions) (Amendment No. 2) Regulations 2014 makes provision for the secondary contributor.
15.The Act amends section 120 of the SSCBA 1992 to enable provision to be made in regulations for a system of certification where certain National Insurance obligations are fulfilled by someone on behalf of the secondary contributor.
16.Equivalent provision will be made in the Finance Act 2014 enabling regulations to provide for a similar certification scheme for PAYE obligations.