NIM02394 - Class 1 NICs: Earnings of employees and office holders: Training and similar costs: Individual Learning Accounts (ILAs)

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

The Individual Learning Account (ILA) scheme was introduced by the Learning and Skills Act 2000.

In England and Northern Ireland, the scheme was suspended on 7 December 2001.

In Wales, the scheme was closed in 2011.

In Scotland, Individual Learning Account (Scotland) Amendment Regulations 2017, SI 2017 No 288 Regulations renamed Individual Learning Accounts (ILAs) as Individual Training Accounts (ITAs) and came into force on 15 October 2017.

From 15 October 2017, there are therefore no ILA provisions in the United Kingdom, but Scotland retains the scheme under the new name of Individual Training Accounts.

An exception from income tax in respect of contributions to ILA training is provided by section 255 of the Income Tax (Earnings and Pensions) Act 2003. Further information can be found from EIM01315.

Regulation 25 of, and paragraph 3 of Part VII of Schedule 3 to, the Social Security (Contributions) Regulations 2001 disregard form earnings for NICs purposes the amount of the contributions to ILA training that are exempt from income tax. This disregard also applies to ITA training.