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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1 NICs: expenses and allowances: Members of Parliament expenses

Paragraph 16 Part 8 Schedule 3 of Social Security (Contributions) Regulation 2001 (SI 2011 No 225)

When considering the expenses of Members of Parliament (MP) and other representatives a payment towards travelling, relocation and other expenses and allowances are disregarded in the calculation of an employed earner’s earnings when no liability to income tax arises by virtue of the following provisions:

  • Accommodation expenses (Section 292 of ITEPA 2003)
  • Overnight expenses of other elected representatives (section 293 of ITEPA 2003)
  • UK Travel and subsistence expenses of MPs (Section 293A of ITEPA 2003)
  • Specified travel expenses to members of the Devolved Administrations (Section 293B ITEPA 2003)
  • European travel expenses of MPs and other representatives (Section 294 of ITEPA 2003)

You should not, therefore, include in gross pay for NICs purposes any payment made by the relevant house authorities in connection with these expenses.