Draft Regulations laid before Parliament under section 5(5) of the National Insurance Contributions Act 2014, for approval by resolution of each House of Parliament.
2016 No. 0000
The Employment Allowance (Excluded Companies) Regulations 2016
Made
Coming into force
These Regulations are made by the Treasury in exercise of the power conferred by section 5(1)(b) of the National Insurance Contributions Act 20141.
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 commencement1
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 20142
In section 2 of the National Insurance Contributions Act 2014 (exceptions), after subsection (4) insert—
4AExcluded companies
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.
(This note is not part of the Regulations)