NIM02399 - Class 1 NICs: Earnings of employees and office holders: Training and similar costs: Return to Work Credit Scheme

Regulation 25 and paragraph 9 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001

The Return to Work Credit Scheme was introduced with effect from October 2003. When originally introduced the scheme did not apply to Northern Ireland.

The scheme was introduced to help people find and keep jobs and was aimed at people who had claimed incapacity benefit for 3 months or more.

Participants in the scheme were eligible for a return to work credit of £40 per week for up to 12 months.

Legislation was introduced with effect from 1 October 2003 to exclude from liability for NICs any payments made to a participant in the Return to Work Credit Scheme. The legislation is contained in paragraph 9 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001.

The scheme was extended to Northern Ireland with effect from October 2005. The disregard for Return to Work payments was extended by amending paragraph 1 of Part VII of Schedule 3 to remove paragraph 9 from the list of disregards not applicable to Northern Ireland. The amending legislation was the Social Security (Contributions)(Amendment No.5) Regulations2005 [SI2005/2422].