Budget - employers NI relief of £2000?

[solongivewaited]

Don't suppose it will make employing a nanny any cheaper? Anyone have any ideas?

[Jillby]

It sounds like we should get big reduction in employer's NI contribution so yes it would be cheaper. I just called the agency that does my Nanny's taxes and they said it sounds like we should be able to benefit but they are still confirming.

[solongivewaited]

Thank you.

[Talkinpeace]

not nannies : only applies to businesses

[Xenia]

Ah, I was wondering about that. I haven't read the budget detailed papers. Why is creation of employment in the home any different for the nation than creating employment in a factory? The new tax payer still pays tax.

[Xenia]

Says businesses and charities in here
cdn.hm-treasury.gov.uk/budget2013_complete.pdf

[Talkinpeace]

The wages have to be an allowable expense as far as I can gather from the business forums : Anchovy has probably read more of it than I

and the Nanny's actual wages are a personal, not a business expense.

[solongivewaited]

Thought it was too good to be true.

[Xenia]

Being suggested on another thread that new details emerging suggest it may apply to all employers. As they probably have not written the regulations or finance act yet I suspect they have not entirely decided.

If Mumsnet could highlight Working Mothers delighted Cameron has given them additional £2k pa tax break it might then be hard for the Government to back down and remove the new relief.

[Talkinpeace]

Xenia
You are more optimistic than I
this is the government after all that takes child benefit away from families with a single earner on £57,000
but allows a childcare tax break to families with two earners on up to £300,000

[Talkinpeace]

that and its not til April next year
www.hmrc.gov.uk/budget2013/ootlar-main.pdf
so there is LOTS of time for it to be totally watered down.

Shame as DH and I stand to REALLY benefit from that one as we each have a Ltd Co.

[Xenia]

I think Mr A said today's news suggested it might apply to all employers What I had read was it applied to "businesses and charities"

Only 8% of women earn over £40k so the £300k issue which has backfired (he should not have had an income limit) - it either had to be none or £150k or the next tax band down at £40k something which would have been too low to help those he hurt by removing child benefit.

[solongivewaited]

Would be great if mumsnet could highlight 'Working Mothers delighted'. I for one would be over the moon.

[Talkinpeace]

solong
the trouble is that with the change in tax allowance, the vast majority of working mothers - who work part time or on low wages - will not be able to benefit
as its only an allowance against your tax bill, so if you pay £200 in tax, that is the most you can get regardless of how much the childcare costs

a few professional working mums whose husbands are also in employment will benefit
but otherwise its all hot air

I think we may have another Omnishambles budget brewing....

[Xenia]

It sounds unlikely it applies to domestic workers, just those working in a business. Presumably it could apply to a lady running a small nursery with 2 women on the minimum wage working for her though as then she would be a business. May be two mothers could set up a childcare business and provide a nanny to each other to save £2k employer NI each. I suppose we will have to wait until they draft the details to know.