Employers of carers to enjoy the £2,000 NIC employment allowance
Wed 03 Dec 2014
The current £2,000 Employment Allowance does not cover those employers engaging individuals such as nannies, housekeepers and carers where these duties are primarily carried out in the family home. This will benefit people who employ carers in the family home who will now be able to take advantage of this exemption and benefit from reducing the cost of employing the carer.
From April 2015 households that employ care and support workers will qualify for the £2,000 Employers National Insurance Contributions (NIC) Employment Allowance. This means that a family will be able to employ a care worker on a salary of up to £22,500 and pay no employer’s NIC.
The carer’s allowance earnings limit is also to be increased from £102 to £110 per week. The carer’s allowance earnings limit enables carers to take on part time work in addition to their care duties without losing their carer’s allowance.
This is a welcome extension to the exemption that will allow more families to employ carers in their own home; creating jobs at the same time as showing the Government’s continued commitment to providing the required levels of care to the most needy in society.
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