Factsheet to help care workers with minimum wage

07 January 2019

The Low Incomes Tax Reform Group (LITRG) has published a factsheet to help care workers understand their minimum wage, tax and tax credit positions.

Care workers can face some real challenges when it comes to understanding their minimum wage, tax and tax credit positions, as these can be made very complex due to the nature of care work and the travel patterns involved.

The LITRG’s  Factsheet offers information and guidance on a number of areas in which care workers are likely to face issues, including:

  • Whether travel time counts as hours worked for minimum wage purposes

  • Deductions that can be made when working out pay for minimum wage purposes

  • What happens for minimum wage purposes if an employer pays differing rates for contact time and travel time or if calls are cut short or overrun

  • What to do if you are being underpaid the minimum wage

  • How minimum wage arrears are treated for tax and National Insurance purposes

  • Whether tax relief is available for unreimbursed costs incurred by care workers

  • How Working Tax Credit (WTC) and universal credit works for care workers.


The Factsheet also includes helpful ‘real-world’ worked examples and links to more help.


CIPP Payroll training courses

The CIPP offer a one-day training course on National Minimum Wage and other worker entitlements.

Browse a complete list of all our payroll industry training courses or visit the payroll training calendar to view by date.

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