Employment allowance
1Employment allowance for national insurance contributions
1
A person qualifies for an employment allowance for a tax year if, in the tax year—
a
the person is the secondary contributor in relation to payments of earnings to, or for the benefit of, one or more employed earners, and
b
in consequence, the person incurs liabilities to pay secondary Class 1 contributions,
under SSCBA 1992 or SSCB(NI)A 1992 (or both).
2
The person's employment allowance for the tax year is—
a
F1£5,000, or
b
if less, an amount equal to the total amount of the liabilities mentioned in subsection (1)(b) which are not excluded liabilities.
3
Subsection (1) is subject to sections 2 and 3 (and Schedule 1).
4
Sections 2 and 3 (and Schedule 1) set out cases in which a person cannot qualify for an employment allowance for a tax year.
5
Section 2 also sets out the cases in which liabilities to pay secondary Class 1 contributions are “excluded liabilities”.
6
Section 4 provides for a person who qualifies for an employment allowance for a tax year to receive it by way of deductions or a repayment under that section.
7
In this Act references to “the employment allowance provisions” are to this section, sections 2 to 4 and Schedule 1.
8
In the employment allowance provisions and section 5 terms used which are also used in Part 1 of SSCBA 1992 or SSCB(NI)A 1992 have the same meaning as they have in that Part.