B4: Being a good employer

Direct Payments Factsheet

B4: Being a good employer

Direct payments provide flexibility to tailor support to your lifestyle. However, it’s essential to comply with legal requirements when employing your own staff.

 

This includes:

  • Providing your personal assistant with a written contract of employment that outlines the terms and conditions of their employment on the day they start to work for you.
  • You must register with HM Revenue & Customs as an employer. When you use a payroll service, they will support you to do this.
  • As an employer you must pay tax, and National Insurance contributions. This is easier to manage when you use a payroll service.
  • You must pay your personal assistant no less than the minimum wage. You will also need to keep up to date with any changes to this rate. HM Revenue & Customs or your Direct Payments Advisor will give you advice about rates you can pay.
  • There will be occasions when your personal assistant cannot work due to sickness. They may be eligible for statutory sick pay, so you need to check the qualifying conditions with HM Revenue & Customs.
  • You must be aware of working time regulations and your responsibilities as an employer.
  • As an employer you need to ensure your personal assistant is entitled to annual leave. It is advisable to check the current entitlement and stay updated with any changes.

 

Pensions

From October 2012 under the Provisions of Pensions Act 2008, employers may be subject to the automatic enrolment duty, requiring them to automatically enrol personal assistants into a pension scheme. A key requirement is to automatically enrol certain workers, known as eligible jobholders, into a pension scheme that meets specific conditions to qualify as an ‘automatic enrolment scheme’. 

 

The direct payments support service can provide you with information on the conditions required for a pension scheme to qualify as an automatic enrolment scheme. However, it is important to note that automatic enrolment is just one of the many duty’s employers have.

 

As an employer, compliance with your duties and safeguards is compulsory. Failure to comply with these duties may result in enforcement action and penalties from HM Revenue & Customs. 

We strongly recommend seeking advice from the direct payments support service who can assist you with all of this.