Class 2 National Insurance contributions: Small Earnings Exception: Special Groups: New Enterprise Allowance and similar schemes
Regulation 45(2)(b)(iii) of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)
Under the provisions of regulation 45(2)(b)(iii) of the Social Security (Contributions) Regulations 2001, payments made in respect of a scheme such as is mentioned within section 60(1) of the Welfare Reform Act  can exclude such payments from the computation of earnings for the purposes of Small Earnings Exception (SEE).
Typically the scheme payments are initiatives to get individuals to return to work using the option of self-employment. The individual does not however have any ‘credits’ to protect his National Insurance record during this time, so the disadvantages of claiming SEE should be fully explained.