Payroll and Self employment question - The Book-keepers Forum (UK)

ADAS · Guru

Payroll and Self employment question

BackOfficeGroup · Guru

Tony

I would think this would not come under PAYE or anything, moreso some kind of benefit. You would pay the carer gross, as they would be deemed as self employed and claim the money back via benefits.

Thats my thoughts, may not be correct though, but you can only register for PAYE if you are a business, and paying a carer to care for you is not a business.

P

Wella · Expert

Not an area I am totally familiar with but could the carer be employed as domestic staff? and PAYE on the simplified scheme.

http://www.hmrc.gov.uk/paye/intro/domestic-employees.htm

Bill

ADAS · Guru

Thanks P & Bill

Think that's the reason Bill - the carer is classed as domestic staff and is not engaged by the "employer" in the pursuit of a trade - which was the bit I was struggling to get my head round.

I really appreciate the help!

Edit: There's so much to learn hmm

-- Edited by ADAS on Wednesday 22nd of September 2010 02:36:45 PM

semsley · Guru

I think there are going to be a lot of problems with this personalisation of benefits where the receiver of the benefit now has to pay the supplier of the service rather than the service be provided by, say, the local authority social services. I believe it is called direct payments.

Whilst one would think that the supplier of the service (the carer) should be self-employed, as presumably they will supply this service to many clients throughout the week, this may not be the case, and the benefit recipients may then find themselves liable as any other employer would be if s/he paid what is in effect cash in hand.

ADAS · Guru

The person receiving the care also has to have public and employers liability insurance. It does seem a little messy but there is an opportunity for those who offer payroll services.

-- Edited by ADAS on Wednesday 22nd of September 2010 03:43:45 PM