Hmrc update: reporting expenses and benefits | hmrc

NMW Regulation changes from April 2024

A draft statutory instrument has been published looking to change the exemption for the definition of work when the work relates to a family household.
The draft will amend regulation 57 of the National Minimum Wage Regulations 2015 to remove paragraph three. This will mean that ‘work’ within the regulations does not apply to only those who satisfy paragraph two, which reads:
(2) The requirements are all of the following—
(a)the worker is a member of the employer’s family;
(b)the worker resides in the family home of the employer;
(c)the worker shares in the tasks and activities of the family.

The exemption to pay National Minimum Wage to workers living with a family home will therefore now only apply to family members as paragraph three will no longer be present, it currently reads:
(3) The requirements are all of the following—
(a)the worker resides in the family home of the worker’s employer;
(b)the worker is not a member of that family, but is treated as such, in particular as regards to the provision of living accommodation and meals and the sharing of tasks and leisure activities;
(c)the worker is neither liable to any deduction, nor to make any payment to the employer, or any other person, as respects the provision of the living accommodation or meals;
(d)if the work had been done by a member of the employer’s family, it would not be treated as work or as performed under a worker’s contract because the requirements in paragraph (2) would be met.

This regulation is expected to come into force on 1 April 2024.