These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) (“the Contributions Regulations”). They come into force on 2nd July 2019.

Schedule 3 to the Contributions Regulations provides for certain payments to be disregarded in the calculation of earnings for the purpose of establishing liability to Class 1 National Insurance contributions.

Regulation 2 of these Regulations inserts a new paragraph 12D into Part 8 of Schedule 3 to the Contributions Regulations so that payments of accommodation allowances made to, or in respect of, a member of the armed forces of the Crown and in respect of which no liability to income tax arises by virtue of section 297D of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) are disregarded for this purpose.

A Tax Information and Impact Note covering the amendments made by this instrument was published on 22nd November 2017 and is available at https://www.gov.uk/government/publications/income-tax-armed-forces-accommodation-allowance-exemption/income-tax-armed-forces-accommodation-allowance-exemption. It remains an accurate summary of the impacts that apply to this instrument.