In June, the Welsh Government announced that it would be making
a one-off flat-rate payment of £500 to social care staff who provided essential
care to the most vulnerable during the challenging period of the coronavirus
pandemic. However, as the payments will be treated as earnings, they will be
subject to income tax and National Insurance contributions.
The Low
Incomes Tax Reform Group (LITRG) is concerned that most eligible social
care workers will not receive the full £500 and will be disappointed to find
they receive significantly less. Those in receipt of universal credit (UC) are
likely to be most heavily impacted, points out LITRG, with UC reducing by 63p
for every £1 of additional net income.
In June, the Welsh Government announced that it would be making
a one-off flat-rate payment of £500 to social care staff who provided essential
care to the most vulnerable during the challenging period of the coronavirus
pandemic. However, as the payments will be treated as earnings, they will be
subject to income tax and National Insurance contributions.
The Low
Incomes Tax Reform Group (LITRG) is concerned that most eligible social
care workers will not receive the full £500 and will be disappointed to find
they receive significantly less. Those in receipt of universal credit (UC) are
likely to be most heavily impacted, points out LITRG, with UC reducing by 63p
for every £1 of additional net income.
