New queries, issue 4315

Nursery NIC

We have been asked to act on behalf of a new client who is starting a childcare nursery for pre-school age children. It seems that most of the employees will work on a part-time basis and be paid the minimum wage or an amount just above it.

This will be partly because the employees want to work part time and partly because the client understands that she can keep her employer’s National Insurance liability low.

Are there any particular problems in this regard? For example if earnings fluctuate above and below the earnings limit say because an employee is covering for another who is sick or on holiday – is there a problem if there is a liability in some weeks but not others? Furthermore does the hourly rate of pay have to include payment for lunch or...