The National Insurance Contributions Act 2014 (c. 7) is an act of the Parliament of the United Kingdom that received royal assent on 13 March 2014, after being introduced on 12 October 2013. The act entitled employers to an allowance up to £2,000 against their National Insurance Contributions liability for a tax year.
Provisions The act created an employment allowance for up to £2,000National Insurance Contributions Act 2014: Section 1, Paragraph 2(a) or an amount equal to the total liabilities to pay secondary Class 1 national insurance contributions (NICs) if lower,National Insurance Contributions Act 2014: Section 1, Paragraph 2(b) for any person or company paying secondary Class 1 NICs for one for more employees,National Insurance Contributions Act 2014: Section 1, Paragraph 1 subject to some exceptions.
The allowance specifically does not apply to public authorities,National Insurance Contributions Act 2014: Section 2, Paragraph 1 employers employing a person for purposes connected with the employers personal affairs,National Insurance Contributions Act 2014: Section 2, Paragraph 3 service companiesNational Insurance Contributions Act 2014: Section 2, Paragraph 4 or where a businesses has been transferred during the tax year.National Insurance Contributions Act 2014: Section 2, Paragraph 6 Where two companies are connected under common control then only one of the companies may claim the allowance.National Insurance Contributions Act 2014: Section 3, Paragraph 3
The act contained measures designed to simplify National Insurance for the self-employed. The act eliminated national insurance contributions for individuals aged between 16 and 21.
The allowance is designed to be claimed as a deduction from payments due to Her Majesty's Revenue and Customs (HMRC).
At the time it was passed, it was estimated that 450,000 businesses would no longer pay national insurance contributions at all due to the measures under the act.
See also List of legislation in the United Kingdom
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