# The Employment Allowance (Increase of Maximum Amount) Regulations 2020, Note: 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/note (the official version)
Page: https://openlegislation.uk/employment-allowance-increase-of-maximum-amount-regulations-2020/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.