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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
, see all updates

Employment income: New Deal 50 plus: employment credit

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.

The New Deal 50 plus scheme began in pathfinder areas in October 1999 and national rollout followed in 2000.

This scheme is aimed at individuals aged 50 or over who have been receiving certain Social Security benefits for six months or more. The benefits concerned are:

  • severe disablement allowance (see EIM76100)
  • incapacity benefit (see EIM76180)
  • income support (see EIM76190)
  • jobseeker’s allowance (see EIM76220).

Under the scheme an employment credit of £60 per week is paid to individuals during their first year back at work on a full-time basis (£40 per week for part-time work) and there is an offer of an in-work training grant of up to £750.

Tax and NICs treatment

There is no income tax or NICs liability on either the employment credit or the training grant.

Self employment

New Deal 50 plus payments made to self employed participants are exempt from charge to income tax and NICs and so do not need to be included in computations of trading profits.

Enquiries on New Deal 50 plus

Enquiries on the New Deal 50 plus scheme should be directed to job centres.