Small Employers NI & Direct Payments

mysterywoman10

I was just wondering if this might be one bit of good news for DP users?

http://www.guardian.co.uk/uk/2013/mar/20/budget-2013-small-firms-exempt-national-insurance

I know in our LA the hourly rate hasn't risen for over 5 years, so funding increased holiday entitlement, NI costs etc. has become increasingly difficult to budget for.

Horseunderwater

This NI reduction allowance is not for local authorities in any way at all.
It is purely intended to help someone who runs a small business pay less NI for any employees they either currently already have or are thinking of taking on. Nothing more and nothing less.

mysterywoman10

I was referring to people who employ carers on direct payments to meet their care needs who are in effect small employers, who have to pay NI on their behalf.

The funding comes from the LA but the users are the employer so pay employers NI contributions which affects the overall budget.

The LA has nothing to do with the NI contributions that the DP user makes, they are registered with the HMRC as employers in their own right.