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National Insurance Contributions Act 2014

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National Insurance Contributions Act 2014[a]
Act of Parliament
coat of arms
Parliament of the United Kingdom
Long titleAn Act to make provision in relation to national insurance contributions; and for connected purposes.
Citation2014 c. 7
Introduced byGeorge Osborne MP, Chancellor of the Exchequer (Commons)
Lord Deighton (Lords)
Territorial extent 
Dates
Royal assent13 March 2014
CommencementVarious (13 March 2014 - 6 April 2015)[1]
Other legislation
Amends
Amended by
Status: Amended
History of passage through Parliament
Text of statute as originally enacted
Revised text of statute as amended
Text of the National Insurance Contributions Act 2014 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

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.[2][3]

Provisions

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The act created an employment allowance for up to £2,000[4][3] or an amount equal to the total liabilities to pay secondary Class 1 national insurance contributions (NICs) if lower,[5] for any person or company paying secondary Class 1 NICs for one for more employees,[6] subject to some exceptions.

The allowance specifically does not apply to public authorities,[7] employers employing a person for purposes connected with the employers personal affairs,[8] service companies[9] or where a businesses has been transferred during the tax year.[10] Where two companies are connected under common control then only one of the companies may claim the allowance.[11]

The act contained measures designed to simplify National Insurance for the self-employed.[12] The act eliminated national insurance contributions for individuals aged between 16 and 21.[13]

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.[14][3]

See also

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Notes

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  1. ↑ Section 21(1).
  2. ↑ Section 21(2)–(3).

References

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  1. ↑ "National Insurance Contributions Act 2014 - Commencement Dates". The Stationery Office. Retrieved 23 August 2014.
  2. ↑ "National Insurance Contributions Act 2014 - Legislation PDF" (PDF). The Stationery Office. Retrieved 23 August 2014.
  3. 1 2 3 Treanor, Jill (20 March 2013). "Budget 2013: 450,000 small firms exempt from national insurance". The Guardian. Retrieved 26 February 2026.
  4. ↑ National Insurance Contributions Act 2014: Section 1, Paragraph 2(a)
  5. ↑ National Insurance Contributions Act 2014: Section 1, Paragraph 2(b)
  6. ↑ National Insurance Contributions Act 2014: Section 1, Paragraph 1
  7. ↑ National Insurance Contributions Act 2014: Section 2, Paragraph 1
  8. ↑ National Insurance Contributions Act 2014: Section 2, Paragraph 3
  9. ↑ National Insurance Contributions Act 2014: Section 2, Paragraph 4
  10. ↑ National Insurance Contributions Act 2014: Section 2, Paragraph 6
  11. ↑ National Insurance Contributions Act 2014: Section 3, Paragraph 3
  12. ↑ "Bill-by-bill guide to Queen's Speech". BBC News. 4 June 2014. Retrieved 26 February 2026.
  13. ↑ "MPs agree Treasury should scrap National Insurance for under-21s". Democracy Live. BBC News. 10 December 2013. Retrieved 26 February 2026.
  14. ↑ Wintour, Patrick (7 May 2013). "Queen's speech: a fresh start that won't upset the backbenchers". The Guardian.
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