NIM16103 - Class 1A National Insurance Contributions: Special Class 1A NICs cases: Child care benefits before 6 April 2005: Exemption from Class 1A NICs liability: Meaning of child care

Section 10(9)(a) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Regulation 40(8) and 40(9) of the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

With effect from 6 April 2005 the exception in regulation 40(8) and 40(9) of the SSCR 2001 was revoked by the Social Security (Contributions) (Amendment No 3) Regulations 2005 (SI 2005 No 778). For the NICs position from 6 April 2005 see NIM16110. EIM22005 explains the income tax position from 6 April 2005.

Meaning of child care in Great Britain (excludes Northern Ireland)

NIM16102 explains when there is no Class 1A NICs liability on benefits or payments in respect of child care. Child care includes:

  • care provided in accordance with the provisions of Part 10 of the Children Act 1989 - child-minding and day care for young children
  • in the case of a child aged 8 or over, care provided by a child minder
  • in the case of a child under the age of 8, care provided by a child minder where that care does not exceed, in total, 2 hours a day
  • care provided by a nanny or a relative
  • care provided during out-of-school hours and during school holidays
  • full-time and part-time care.

Where a dispute arises about whether child care is provided by a ‘nanny’ or a ‘relative’, these terms have the meanings given to them in sections 71(13) and 105(1) of the Children Act 1989.

Meaning of childcare in Northern Ireland

For the exemption as it applies in Northern Ireland up to 5 April 2005, child care includes:

  • care provided in accordance with the provisions of Part 10 of the Children Act 1989 - child-minding and day care for young children
  • in the case of a child aged 12 or over, care provided by a child minder
  • in the case of a child under the age of 12, care provided by a child minder where that care does not exceed, in total, 2 hours a day
  • care provided by a nanny or a relative
  • care provided during out-of-school hours and during school holidays
  • full-time and part-time care.