NIM06525 - Employment Allowance: Who can’t claim the Employment Allowance?

Section 2 (1) to (9) of the National Insurance Contributions Act 2014 (NICA 2014)

The Employment Allowance (Excluded Companies) Regulations 2016

A secondary contributor that is, the employer, must incur secondary class 1 NICs liabilities during a tax year before they have a valid claim to the Employment Allowance for that year.

In addition, there are some circumstances where a secondary class 1 NICs liability may arise, but the claimant will still not qualify to receive the Employment Allowance. These are stipulated as “exceptions” within section 2 of the NICA 2014 and are each explained in detail at pages NIM06525 to NIM06560.