NICs disregard for voluntary office holders’ expenses

The Social Security (Contributions) (Amendment No 3) Regulations, SI 2020/320, mirror income tax changes introduced by Finance Bill 2020 so that no Class 1 NIC liability will arise on payment of reasonable expenses made to voluntary office holders where the corresponding income tax exemption applies.

Clause 13 of Finance Bill 2020 introduces the new income tax exemption. Subject to approval of those provisions by Parliament, the NICs regulations will come into force on 6 April 2020.