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NICs: employment allowance extension to personal carers

From 6 April 2015 the ‘employment allowance’ relief will be available to individuals who employ care and support workers. Employers will be entitled to deduct up to £2,000 per annum from their liability to pay secondary Class 1 (‘employer’) National Insurance contributions (NICs).

Employers who employ staff for purposes connected with their personal, family or household affairs are currently excluded from claiming the employment allowance, which would reduce their NICs liability by up to £2,000 a year. Removing this exclusion from care and support workers will support individuals who need to purchase care for themselves or others.

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