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HMRC internal manual

Employment Income Manual

Employment income: New Deal: options 3 and 4: work on the Environment Task Force or in the voluntary sector

New Deal was phased out on a rolling programme ending in September 2011. This guidance will be retained until all potential New Deal recipients are out of the in date tax years.

New Deal participants who work for a provider through the Environment Task Force (ETF) option or the voluntary sector (VS) option, may receive either a wage or a training allowance:

  • if they receive a wage the tax treatment follows that for New Deal option 1 - work in a subsidised job with an employer (see EIM01653). For years up to and including 1999/2000 there was no NICs liability on wages paid under options 3 and 4 but from 2000/01 NICs are charged on wages paid these options
  • if they receive a training allowance there are no tax or NICs (see EIM01654).