# The Employment Allowance (Increase of Maximum Amount) Regulations 2020

S.I. 2020/273 · made 11 March 2020

These Regulations amend the National Insurance Contributions Act 2014 (c.7) (“the Act”). Persons who incur liabilities to pay secondary Class 1 National Insurance contributions during a tax year are entitled under section 1 of the Act to claim an allowance, known as the “employment allowance”, which they can deduct from their payments in respect of these liabilities. Regulation 2 amends section 1(2)(a) of the Act so as to increase the maximum amount of the employment allowance from £3,000 to £4,000 for the tax year 2020-21 and subsequent tax years.

Made under: National Insurance Contributions Act 2014 (Section 5)

PDFs: Printed copy https://openlegislation.uk/employment-allowance-increase-of-maximum-amount-regulations-2020/pdf/uksi_20200273_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/employment-allowance-increase-of-maximum-amount-regulations-2020/pdf/uksiem_20200273_en.pdf

## Introductory text

Social Security
Approved by both Houses of ParliamentMade 11th March 2020
Laid before Parliament 12th March 2020
Coming into force 6th April 2020
The Treasury make these Regulations in exercise of the power conferred by section 5(1)(a) of the National Insurance Contributions Act 2014.

## 1 Citation and commencement

These Regulations may be cited as the Employment Allowance (Increase of Maximum Amount) Regulations 2020 and come into force on 6th April 2020.

## 2 Amendment to the National Insurance Contributions Act 2014

In section 1(2)(a) of the National Insurance Contributions Act 2014 (employment allowance for national insurance contributions), for “£3,000” substitute “£4,000”.

## Signature

Maggie Throup
Iain Stewart
Two of the Lords Commissioners of Her Majesty’s Treasury
11th March 2020

## Explanatory note

(This note is not part of the Regulations)
These Regulations amend the National Insurance Contributions Act 2014 (c.7) (“the Act”). Persons who incur liabilities to pay secondary Class 1 National Insurance contributions during a tax year are entitled under section 1 of the Act to claim an allowance, known as the “employment allowance”, which they can deduct from their payments in respect of these liabilities. Regulation 2 amends section 1(2)(a) of the Act so as to increase the maximum amount of the employment allowance from £3,000 to £4,000 for the tax year 2020-21 and subsequent tax years.
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/uksi/2020/273 (the official version)
Page: https://openlegislation.uk/employment-allowance-increase-of-maximum-amount-regulations-2020
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.