NIM02395 | Class 1 NICs: Earnings of employees and office holders: Training and similar costs: New Deal 50 Plus

Regulation 25 and paragraph 4 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001

The New Deal 50 Plus scheme commenced in pilot areas in October 1999 before being rolled-out in 2000.

The scheme was aimed at helping unemployed individuals who are aged 50 or over and who had been receiving certain benefits for 6 months or more back into work. The benefits concerned were jobseeker’s allowance, incapacity benefit, severe disablement allowance and income support.

Under the scheme an employment credit was paid during their first year back at work and an in- work training grant is also available.

Legislation was introduced with effect from 25 October 1999, in the form of regulation 19(1)(zs) of the Social Security (Contributions) Regulations 1979, to exclude from liability for NICs any payments made under the New Deal 50 Plus scheme. There was therefore no liability for Class 1 NICs on either the employment credit or the training grant available under the scheme.

The legislation was subsequently consolidated into the Social Security (Contributions) Regulations 2001 and the relevant provisions which exclude the payments from liability are now regulation 25 and paragraph 4 of Part VII of Schedule 3 to those Regulations.