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Cameron writes to domestic employers mistakenly offering National Insurance ‘cashback’

Domestic employers were left angry and confused last month after receiving personalised letters inviting them to take up David Cameron’s National Insurance incentive. This is despite the £2,000 allowance scheme excluding them.

Prime Minister Cameron sent personally signed letters to almost two million companies encouraging them to use the government’s new Employment Allowance, which came into force Sunday 6 April. This included the UK’s thousands of domestic employers – which covers 60,000 nanny employers – despite them being excluded from the allowance.

Helen Harvey, Payroll Services Director at Nannytax said: “We have received dozens of frustrated phone calls from nanny employers across the country, who really just want clear communication on this issue.

“We were extremely disappointed that the Government decided to exclude domestic employers from applying for the new Employment Allowance. With the lack of affordable childcare, and pressures on family income, many parents have to work whilst bringing up their children. Employing a nanny is often the best or only option available to them, especially if they have to work shift patterns – like nurses and police.

“We are also concerned by the timing of this, as it coincides with the removal of the Percentage Threshold Scheme, which these small employers relied upon when their employees were ill. It also comes as the rising cost of implementing automatic enrolment is approaching.

“Mistakenly sending this letter has simply added confusion to the angry feelings amongst many UK domestic employers.”

Claire Madden from Northamptonshire employs a nanny to care for her two girls while she works long hours running her own business. She commented: “I can’t understand why employers of domestic workers are not able to qualify – I provide employments and pay NICs. Why should I be excluded?”

John Harris of Buckinghamshire works in a senior IT job and his wife works full time as a teacher. He was also frustrated with the Government’s bungle, commenting: “I am regarded as an employer when it suits the government and have to comply with all the same tax, NI, holiday, health and safety as any other employer. This is a significant overhead for me, yet I do it and follow the rules. It’s a classic example of the government double or treble dipping.”

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