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New NIC £2000 allowance and gardeners

New NIC £2000 allowance and gardeners

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The rules of the new allowance say that employers of domestic cleaners, nannies, gardeners etc are excluded from the new allowance.

One of my clients is a Residential Management Company - shares owned by owners of each property within the small estate.  The company has only one employee -  a gardener/handyman to maintain the shared areas of the grounds. Would this be excluded as a "domestic" employment?

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By petersaxton
26th Feb 2014 21:47

Gardener?

"The rules of the new allowance say that employers of domestic cleaners, nannies, gardeners etc are excluded from the new allowance.

One of my clients is a Residential Management Company - shares owned by owners of each property within the small estate.  The company has only one employee -  a gardener/handyman to maintain the shared areas of the grounds. Would this be excluded as a "domestic" employment?"

Consider any similarity?

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By WhichTyler
27th Feb 2014 06:51

Legislation

I notice that this is still making its way through Parliament (http://services.parliament.uk/bills/2013-14/nationalinsurancecontributio...) so there can't be any 'rules' or case law as yet.

Interestingly the original announcement said that this would apply to 'businesses and charities' (so would exclude your sort of set up) but the current draft legislation refers to 'persons' (so any legal entity).

 

However it also says  "Liabilities to pay secondary Class 1 contributions incurred by a person (“P”) are “excluded liabilities” if they are incurred in respect of an employed earner who 

is employed (wholly or partly) for purposes connected with P’s personal, 
family or household affairs."

I am not a lawyer, but if P is a management company, can it have 'personal, family or household affairs'. For £2000 it might be worth putting a case to HMRC and asking them to confirm (once the legislation is enacted of course)

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By graffle
27th Feb 2014 08:29

Thanks
I'll keep an eye on it. There is no single individual who derives personal or family benefit from his work; at the moment client is just suggesting changing his title to "groundsman" or "estate manager".

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Stepurhan
By stepurhan
27th Feb 2014 09:20

Is it domestic?

I assume that graffle is saying that a gardener for a block of flats is no longer domestic, and hence does not fall under the exclusion.

This is just another example of why adding in complications, such as these exclusions, leaves legislation open to interpretation. I really don't follow the logic for the exclusions in the first place, but since they are part of the proposal there are now likely to be a lot of arguments.

It doesn't just stop at this point. Is the gardener of a block of flats excluded? Possibly, because it could still be considered domestic, just for many homes rather than one. What about a gardener of a stately home open to the public? Domestic, because the family live in part of the building, or commercial because related to the tourist business? In fact, is that the actual distinction? Are the gardeners of Kew Gardens (definitely not domestic) excluded for being gardeners.

All government legislation should be passed to a five year old first. Any flaws even they can spot should be corrected before it gets its first reading.

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By graffle
27th Feb 2014 09:31

Exactly; where would/could they draw the line
In this case, there's as much woodland management as rose pruning and lawn mowing....
Salary not high enough for as much as £2000 to be at stake, but I guess we'll have to wait and see what comes out as it goes through parliament.

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