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HMRC internal manual

National Insurance Manual

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

Regulation 25 and paragraph 11 of Part VII of Schedule 3 to the Social Security(Contributions) Regulations 2001

The In-Work Credit scheme commenced in April 2004.

The scheme was introduced to provide additional support for lone parents who find work.Payment of an additional £40 a week is available to lone parents who have been in receiptof Income Support or Jobseeker’s Allowance (income based) for 12 months or more ifthey move into work of at least 16 hours a week. Payments can continue for up to 12months.

Legislation was introduced with effect from 6 April 2004, in the form of paragraph 11 ofPart VII of Schedule 3 to the Social Security (Contributions) Regulations 2001, to excludefrom liability for NICs any payments made to a participant in an In-Work Credit scheme.There is therefore no liability for Class 1 NICs on any payments made under the In-WorkCredit scheme.