Employment Allowance Extended to Carers

December 5, 2014

The Chancellor’s pre-election Autumn Statement was a huge triumph for Britain’s seven million carers.

His pledge to include these admirable individuals in the Employment Allowance will enable millions of hard-working families to reduce their annual National Insurance bill by up to £2,000, with thousands expected to no longer have to make any payments at all.

Many families employ carers direct or appoint members of their own family as their carer, which means having to make National Insurance Contributions (NICs) like any other employer. Reducing or eliminating this cost is therefore a huge benefit to the British care system and will ultimately boost job creation.

First announced in the Budget 2013, the Employment Allowance saw the likes of carers, nannies and housekeepers exempt from the tax-saving benefit because their duties are primarily carried out in the home.

Yet under the reforms, any household that employs a carer direct will qualify for the £2,000 reduction in NICs each year as of April 2015. It also means that a family will be able to employ a care worker on a salary of up to £22,500 and pay no employer NICs whatsoever.

At Community Life Choices we assist people in recruiting carers direct and provide a full payroll support service to eliminate the unnecessary admin. For many, this can be a daunting task as it means becoming their employer; however this welcomed extension will allow more families to employ carers in their own home, creating additional jobs, whilst also ensuring they receive the required levels of care to live independently with greater choice and control.

©2015 Community Life Choices