NIM41235 | Credits: post 1975 credited earnings: Working Tax Credit

Regulation 7B of the Social Security (Credits) Regulations 1975 (SI 1975 No. 556)

A person is entitled to a Class 1 National Insurance (NI) credit for each week or part week in which the disability element or the severe disability element is paid with their Working Tax Credits award, and in the same week the person is:

• an employed earner, or

• a self-employed earner who has profits below the Small Profits Threshold, see NIM70300. Before 6 April 2015 an NI credit could only be awarded where a self-employed person had been granted a Small Earnings Exception (SEE), see NIM21000

• excepted from liability to pay Class 2 NICs by regulation 43 of the Social Security (Contributions) Regulations 2001, see NIM70550.

A person is not entitled to an NI credit under regulation 7B in respect of any week they are is entitled to a Class 1 NI credit under under regulation 8A (credits for unemployment) or 8B (credits for incapcity for work or limited capability for work) in respect of the same week.

A person is also not entitled to an NI credit under regulation 7B if they were a married woman with a valid married woman’s reduced rate election.