Care and support employers: tax exemptions

Care and Support (C&S) employers are people who employ a carer (usually with local authority funding). The Low Income Tax Reform Group (LITRG) has succeeded in persuading the government to allow the following exemptions for C&S employers:

1. Exemption from the otherwise mandatory online filing. Paper filing can be done once a quarter.

2. From April 15 the Employment Allowance is extended to C&S employers, The annual £2,000 Employment Allowance is a reduction in Employers’ NIC due. C&S employers had previously excluded simply because the Employment Allowance is not available to employers with only 1 employee – this is anti-avoidance to deal with companies used to charge the services of a sole director/shareholder.

3. From April 16 any taxable benefit arising from board and lodging received is exempt.

Details taken from ICAEW’s Taxline March 15