NICs Employment Allowance

27 January 2015

At the last Employment and Payroll Group (EPG) a member raised a question regarding individuals who employ carers.

As announced in the Autumn Statement, we know that from 6 April 2015 individuals who employ carers will be able to claim the National Insurance Contributions (NICs) Employment Allowance. The question asked at the EPG asked was:

"Is this only for those receiving funding from local authorities or does it include private funded cases?"

We asked HMRC and they advise the following:

“Individuals employing a care and support worker will be eligible to claim the Employment Allowance, irrespective of whether they are using NHS direct payments/funds from local authorities or private funds to pay them. In other words, you will be eligible to claim the allowance if you are paying the carer using your own money or NHS direct payments.

However, if the individual employing the care and support worker is also a sole trader and has already claimed the Employment Allowance for their business, they cannot claim a second employment allowance.”

Minutes from the last EPG meeting will be available soon. If you would like to share your top five payroll issues, please email them to Karen Thomson and they will be raised at the next EPG meeting.