{
  "url": "https://openlegislation.uk/draft-employment-allowance-excluded-companies-regulations-2016/note",
  "json_url": "https://openlegislation.uk/draft-employment-allowance-excluded-companies-regulations-2016/note.json",
  "legislation": "ukdsi/2016/9780111143032",
  "legislation_title": "The Employment Allowance (Excluded Companies) Regulations 2016",
  "legislation_url": "https://openlegislation.uk/draft-employment-allowance-excluded-companies-regulations-2016",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the National Insurance Contributions Act 2014 (c. 7) (“the Act”). Section 1 of the Act allows a secondary contributor to claim an employment allowance towards their liability to pay secondary Class 1 National Insurance Contributions. Section 2 of the Act contains exceptions and in particular provides that certain persons are not able to qualify for an employment allowance.\nRegulation 2 inserts new subsection (4A) into section 2 of the Act. The new subsection provides that a company cannot qualify for an employment allowance where all the payments of earnings it pays in a tax year are paid to or for the benefit of one employed earner only who is also a director of the company at the time the payments are made.\nA 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.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2016/9780111143032/note",
    "retrieved_at": "2026-10-30T15:08:39.240402+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}