It’s always best to check the responsibilities around tax and employment rights. There are two key questions to ask. What is the employment status of your worker, and how does that impact you?
If you hire someone who is neither self-employed, nor paid through an agency, you’re likely to be considered their employer. This creates legal rights for the employee and responsibilities on your part. The rules apply to anyone working for you, from nannies to gardeners; and carers to personal assistants. Even where direct payments are received from the NHS or local council to pay for a carer, you can still be considered an employer.
As an employer, you are required to check that your employee has the right to work in the UK, and to register as an employer with HMRC. Auto-enrolment pensions duties can also apply.
Paying at least the minimum wage; providing a payslip; and deducting tax correctly also become your responsibility.
Rules on minimum wage eligibility have changed from 1 April 2024 for live-in workers, such as au pairs.
The previous exemption from minimum wage entitlement has been removed and these workers are also now eligible for payment at minimum wage rates.
It is always important to take care over any question of employment status, and we are on hand to advise.
