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LITRG highlights the tax and related problems with Access to Work - a funding programme to assist disabled people in a work environment.
 

Access to Work and potential tax issues

Access to Work is a specialist disability programme, funded by the Department for Work and Pensions (DWP), to support disabled people overcome work-related obstacles resulting from their disability. Tax issues arise where the funding is used to buy in the services of a worker to support a disabled person in their self-employment. For a disabled person who is an employee these issues are normally taken care of by their employer.

Under the rules, support workers may not actually do the work of the employer or run more than 20% of the core business of a self-employed person, but are there to assist the disabled person in a work environment.

Taking on a support worker brings with it a whole raft of tax, national insurance and employment law considerations. Yet it seems that Jobcentre Plus, which deliver the programme, are largely ignorant of these regulatory burdens, and HMRC have little information on Access to Work funding and tax related issues. More barriers are put in the way of those with disabilities rather than removing them.

The recent consultation

The DWP have recently consulted on the Access to Work programme and LITRG has made a range of recommendations to improve training and guidance for staff and to encourage closer co-operation between the DWP and HMRC.

Useful links

A link to LITRG’s full response to the consultation can be found on the group’s website.
LITRG also provide more information about tax and related issues for disabled people and carers.