Class 1 NICs: Earnings of employees and office holders: Training and similar costs: Retraining courses for claimants for jobseeker's allowance (Employment Zones)
Regulation 25 and paragraph 5 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001
The Department for Education and Skills initiated the Employment Zones programme inApril 2000 to help the long-term unemployed in specified areas to get back into and keepwork. The programme will run until the end of March 2002. The programme is operated in 15selected areas in England, Wales and Scotland it does not operate in NorthernIreland.
To be a participant in a scheme an individual must have been claiming jobseekersallowance for a specified period generally 12 months, but 18 months in some areas.
For more information about the Employment Zones programme see EIM01702, (previouslySE01702.)
Because the Employment Zones arrangements are designed to be very flexible there may becircumstances where payments would be liable for NICs. Legislation has therefore beenintroduced to ensure that no NICs will be due on any payments under the Employment Zonesprogramme. Current legislation which excludes the payments from Class 1 NICs can be foundin regulation 25 and paragraph 5 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001 [previously regulation 19(1)(zt) of the Social Security(Contributions) Regulations 1979].
No Class 1A liability will arise on any benefits provided under the programme because theyare excluded from charge to tax. See NIM13000 for guidance onthe general principles concerning liability for Class 1A NICs.