New employment status help for disabled people who take on a carer

Disabled people can face some real challenges when it comes to understanding whether their carer is employed or self-employed. LITRG’s new factsheet is here to help!

HMRC’s view is that a carer providing care in a disabled person’s home is likely to be an ‘employee’. However, carers can often be treated as ‘self-employed’ incorrectly, exposing the disabled person to penalties for PAYE failures, amongst other things.

In light of all this, LITRG have developed a comprehensive factsheet to explain the complex and difficult rules around ‘employment status’. It contains information and guidance on a number of areas, including:

  • Why is it important to know if I’m an employer?
  • Who decides if my PA is employed or self-employed?
  • How do I decide if my PA is employed or self-employed?
  • How do I apply the rules?
  • What help is available with working out status?
  • Using HMRC’s Check Employment Status for Tax tool
  • What if I get my PA’s status wrong?
  • What if my PA insists on being self-employed?
  • Okay, I’m an employer, what do I do now?

It also includes a helpful ‘real-world’ example of what a genuinely self employed carer might look like and links to more help. The new factsheet supplements the information and guidance that already exists in the ‘Tax Status’ part of our website.

The key message from the factsheet is that the employment status of a carer is not a choice.

If you are an individual employer and find the factsheet useful, please do share the factsheet with anyone else you think might find it useful. If you feel it would be beneficial for LITRG to expand on any of the areas covered or if you do not think we have covered what you wanted to know, please do contact us.