Statutory Instruments
2016 No. 344
Social Security
The Employment Allowance (Excluded Companies) Regulations 2016
Made
10th March 2016
Coming into force
6th April 2016
These Regulations are made by the Treasury in exercise of the power conferred by section 5(1)(b) of the National Insurance Contributions Act 2014( 1 ).
A draft of this instrument was laid before Parliament in accordance with section 5(5) of the National Insurance Contributions Act 2014 and approved by a resolution of each House of Parliament.
Citation and commencement
1. These Regulations may be cited as the Employment Allowance (Excluded Companies) Regulations 2016 and come into force on 6th April 2016.
Amendment to the National Insurance Contributions Act 2014
2. In section 2 of the National Insurance Contributions Act 2014 (exceptions), after subsection (4) insert—
“ Excluded companies
(4A) A body corporate (“C”) cannot qualify for an employment allowance for a tax year if—
(a) all the payments of earnings in relation to which C is the secondary contributor in that year are paid to, or for the benefit of, the same employed earner, and
(b) when each of those payments is made, that employed earner is a director of C. ” .
George Hollingbery
Mel Stride
Two of the Lords Commissioners of Her Majesty’s Treasury
10th March 2016