BIM40401 - Receipts: government support for new businesses: New Deal: tax treatment

New Deal is part of the government’s 'welfare to work' plan administered by Jobcentreplus on behalf of the Department for work and pensions. Payments to New Deal participants are made under the Employment and Training Act 1973.

Further information on the New Deal can be found at EIM01650 onwards.

New Deal payments made to self employed participants are part of any trading profits that they make and are chargeable to income tax and Class 4 NICs. However there is no liability to Class 2 NICs for their period of participation in the New Deal.

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.