# The Employment Allowance (Excluded Companies) Regulations 2016, Note: Explanatory note


(This note is not part of the Regulations)
These 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.
Regulation 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.
A 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.

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Source: https://www.legislation.gov.uk/ukdsi/2016/9780111143032/note (the official version)
Page: https://openlegislation.uk/draft-employment-allowance-excluded-companies-regulations-2016/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.