NIM02401 | Class 1 NICs: Earnings of employees and office holders: Training and similar costs: In-Work Credit Scheme

Regulation 25 and paragraph 11 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001

The In-Work Credit scheme commenced in April 2004.

The scheme was intended to provide additional support to lone parents who found work. Payment of an additional £40 a week was made available to loan parents who had been in receipt of Income Support or Jobseeker’s Allowance (income based) for 12 months or more if they moved into work of at least 16 hours a week. Payments could continue for up to 12 months.

Legislation was introduced with effect from 6 April 2004, in the form of paragraph 11 of Part VII of Schedule 3 to the Social Security (Contributions) Regulations 2001, to exclude from liability for NICs any payments made to a participant in an In-Work Credit scheme.

There was no liability for Class 1 NICs on any payments made under the In-Work Credit scheme.