A review of the guidance for the £2000 Employer's Allowances states that if a business receives more than 50% of its income from working in or for public service, then the allowance is not due. Dentists for example who do NHS work are generally not eligible.
Nursing homes will normally receive over 50% of their income from the public purse in one way or another but are they working for public service or for the residents who themselves are funded by public funds?
Does anyone have any experience of HMRC's take on this?
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Who pays the fees?
If the council or social services pay to the nursing home directly more than 50% of its turnover, the nursing home will be a "public authority" and not entitled to the Employment Allowance.
If more than 50% of the turnover is paid from private sources - the residents or their families - the nursing home will qualify for the Employment Allowance. It is irrelevant if the residents fund their payments from their state pensions or other state benefits to which they are entitled.
Incidentally, I don't know what guidance you are quoting when you say "working for public service" - the law set out in s.2(2) NICA 2014 refers to "the performance of functions ... which are of a public nature".