More clarity has been provided by HMRC surrounding private nurseries’ eligibility for the Employment Allowance following widespread confusion among the sector if receiving more than 50 per cent of public funding and doing more than 50 per cent of public work means they are ineligible.
Following additional information from HMRC, the National Day Nurseries Association (NDNA) has sent out further advice to its members to clarify that ‘standard nurseries’, even if they receive more than 50 per cent of their income from Government funding, should be able to claim the Allowance.
It states that nurseries should be eligible for the Allowance ‘due to the fact that a parent can take-up a funded place at any number of private nurseries, that private nurseries have more of a choice on accepting their customers’, and because they ‘are less likely to be seen as performing functions of a public nature for the purposes of the National Insurance Manual.’
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