The Employment Allowance (Increase of Maximum Amount) Regulations 2020

Made: 11th March 2020

Laid before Parliament: 12th March 2020

Coming into force: 6th April 2020

The Treasury make these Regulations in exercise of the power conferred by section 5(1)(a) of the National Insurance Contributions Act 2014[^f00001].

Citation and commencement

1

These Regulations may be cited as the Employment Allowance (Increase of Maximum Amount) Regulations 2020 and come into force on 6th April 2020.

Amendment to the National Insurance Contributions Act 2014

2

In section 1(2)(a)[^f00002] of the National Insurance Contributions Act 2014 (employment allowance for national insurance contributions), for “£3,000” substitute “£4,000”.

Signed

Maggie Throup — Iain Stewart — Two of the Lords Commissioners of Her Majesty’s Treasury — 11th March 2020

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the National Insurance Contributions Act 2014 (c.7) (“the Act”). Persons who incur liabilities to pay secondary Class 1 National Insurance contributions during a tax year are entitled under section 1 of the Act to claim an allowance, known as the “employment allowance”, which they can deduct from their payments in respect of these liabilities. Regulation 2 amends section 1(2)(a) of the Act so as to increase the maximum amount of the employment allowance from £3,000 to £4,000 for the tax year 2020-21 and subsequent tax years.

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http:/www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

Footnotes

[^f00001]: 2014 c.7.

[^f00002]: The figure in section 1(2)(a) was substituted by S.I. 2016/63.