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HMRC internal manual

National Insurance Manual

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 beingrolled-out in 2000.

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

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

Legislation was introduced with effect from 25 October 1999, in the form of regulation19(1)(zs) of the Social Security (Contributions) Regulations 1979, to exclude fromliability for NICs any payments made under the New Deal 50 Plus scheme. There is thereforeno liability for Class 1 NICs on either the employment credit or the training grantavailable 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 arenow regulation 25 and paragraph 4 of Part VII of Schedule 3 to those Regulations.