Employing personal care

If you are considering employing someone to care for you, you could be an employer.

Some of the people who work in our homes and provide a variety of help will be self-employed and responsible for their own tax. These individuals may have a number of customers, they may use their own equipment and, most importantly, they should be registered as self-employed with HM Revenue and Customs (HMRC) and have a Unique Tax Reference number (UTR). However, if they do the work as you direct them and with your equipment, then they may be considered an employee and you may be responsible for managing their tax under PAYE.

If you think you are an employer you may be able to use the Simplified PAYE Deduction Scheme. To find out more, go to http://www.hmrc.gov.uk/simple_deduction/index.htm or phone 0845 6070143 and ask about the Simplified PAYE Deduction Scheme.

The Simplified PAYE Deduction Scheme may be used so long as taxable pay is no more than £160 per week, or £700 per month.

You may ask someone to run the payroll on your behalf. Many charities provide such a service for people receiving direct payments for care provision. See, for example, Enable payroll (http://www.enable-payroll.co.uk/). 

If you are not sure whether a care worker is employed or self-employed, you could ask them if they are register as self-employed. You could also put detail of the work relationship into the HMRC Employment Status Indicator programme www.hmrc.gov.uk/calcs/esi.htm. If in doubt, you should contact HMRC on the New Employer Helpline 0845 60 70 143.