The Social Security Contributions (Disregarded Payments) (Coronavirus) (England) Regulations, SI 2020/1065, provide that test and trace support payments made to certain individuals required to self-isolate due to coronavirus will be exempt from NICs.
The £500 support payments are available to those on low incomes who have tested positive for coronavirus, or have been told by NHS Test and Trace to self-isolate, who cannot work from home and have lost income as a result. The earnings disregard applies for the purposes of calculating liability to pay primary and secondary Class 1 contributions, and Class 1A contributions are also not payable. The Regulations come into force on 22 October 2020.
HMRC has also published a tax information and impact note which confirms that employers and local authorities will not need to report and deduct NICs on the support payments. The TIIN also notes that ‘HMRC will use its administrative powers to exempt payments made under the scheme for a limited period of time before the legislation comes into force’.
The Social Security Contributions (Disregarded Payments) (Coronavirus) (England) Regulations, SI 2020/1065, provide that test and trace support payments made to certain individuals required to self-isolate due to coronavirus will be exempt from NICs.
The £500 support payments are available to those on low incomes who have tested positive for coronavirus, or have been told by NHS Test and Trace to self-isolate, who cannot work from home and have lost income as a result. The earnings disregard applies for the purposes of calculating liability to pay primary and secondary Class 1 contributions, and Class 1A contributions are also not payable. The Regulations come into force on 22 October 2020.
HMRC has also published a tax information and impact note which confirms that employers and local authorities will not need to report and deduct NICs on the support payments. The TIIN also notes that ‘HMRC will use its administrative powers to exempt payments made under the scheme for a limited period of time before the legislation comes into force’.
