NICs Employment Allowance

16 March 2015

A number of members have asked about the changes to the Employment Allowance from 6 April 2015. In particular the definition of a care and support worker and whether a nanny looking after a disabled child was a carer or a nanny?

The regulations which were laid on 4 March now identify the additional criteria for which an employer can claim the allowance. The amendment reads:

2.In section 2 of the National Insurance Contributions Act 2014 (exceptions), after subsection (3) insert—

“(3A)But the liabilities mentioned in subsection (3) are not “excluded liabilities” by virtue of that subsection if all the duties of the employed earner’s employment which relate to P’s personal, family or household affairs are performed for an individual who needs those duties to be performed because of the individual’s—

a) old age,

b) mental or physical disability,

c) past or present dependence on alcohol or drugs,

d) past or present illness, or

e) past or present mental disorder.”.

This confirms therefore any member of staff (domestic/nanny) not required to undertake their duties due to one of the above criteria would not qualify for the employment allowance.