NIM41236 - Credits: post 1975 credits for working tax credit

Regulation 7C of the Social Security (Credits) Regulations 1975 (SI 1975 No. 556)

Regulation 30 of the State Pension Regulations 2015 (SI 2015 No. 173)

Regulation 7C applies from 1 November 1995 until 5 April 2016 and regulation 30 applies thereafter.

These regulations provide a Class 3 National Insurance (NI) credit for each week or part week in which Working Tax Credit (WTC) is paid to a person and in the same week that person is:

• an employed earner or
• a self-employed earner who has profits below the Small Profits Threshold (SPT), see NIM70300. Before 6 April 2015 an NI credit could only be awarded where a self-employed person had been granted a Small Earnings Exception (SEE), see NIM21000
• excepted from liability to pay Class 2 NICs by regulation 43 of the Social Security (Contributions) Regulations 2001, see NIM70550.

An NI credit under this regulation can only be awarded where a person is paid WTC. In the case of a couple, where both are paid WTC, only one person can be awarded the NI credit. This is the person in the couple to whom the WTC is paid. The couple decide to whom the WTC is paid and the NI credit is awarded to that person.

A credit will not be awarded where:

• In respect of the same week, a person is entitled to an NI credit under regulation
  • 7B (credits for disability element of working tax credit) or,
  • 8A (credits for unemployment), or
  • 8B (credits for incapacity for work or limited capability for work); or
• they were a married woman with a valid married woman’s reduced rate election.

Couple means -

(a) a man and woman who are married to each other and are members of the same household;

(b) a man and woman who are not married to each other but are living together as husband and wife otherwise than in prescribed circumstances;

(c) two people of the same sex who are civil partners of each other and are members of the same household; or

(d) two people of the same sex who are not civil partners of each other but are living together as if they were civil partners otherwise than in prescribed circumstances;