What is the change to the Employment Allowance?

From 6 April 2015, employers of care and support workers can claim the Employment Allowance. This means they can reduce their Employer NICs bill by up to £5000 a year, depending on how much Employer NICs they pay. The Employment Allowance is not a grant: it works by reducing the amount of employer NICs you need to pay.

 

I employ a care and support worker. Can I claim the Employment Allowance?

You can claim the Employment Allowance if

– You are an employer and you pay employer NICs,

– You employ a care and support worker, either for yourself or another person. If you employ a carer for someone else, you do not need to be related to them or live with them, and

– The person you are employing the care and support worker for needs care because of their:

 

(a) old age

(b) mental or physical disability,

(c) past or present dependence on alcohol or drugs,

(d) past or present illness,

(e) past or present mental disorder.

In addition, all of the duties of the care and support worker have to be in relation to the individual(s) who needs care. So the care and support worker can’t help out with others in the home who don’t need care.

 

What this all means

If you are employing a care and support worker for someone who needs care because of one or more of the reasons set out above, and all the duties of the care and support worker are in relation to the person needing care, then you can claim the Employment Allowance for as long as they need care.

 

You can claim the Employment Allowance:

– if you receive a direct payment for care from the NHS or your local authority and you use this to employ care and support worker. This type of care worker is also sometimes known as a Personal Assistant.

– if you employ a care and support worker and pay for this yourself, from your own funds.

– if you employ a care and support worker for yourself, a family member, or someone completely unrelated to you.