Your legal responsibilities
If you employ a PA/carer in the UK and you pay them more than £100 per week (tax year 2007/2008) you have the same legal responsibilities as a commercial employer and the law requires you to:
- Register as an employer
- Set up and operate a PAYE (Pay As You Earn) scheme on their behalf
- Keep tax records on their behalf
- Provide your employee with regular payslips
- Provide them with an employment contract
- Pay regular income tax and National Insurance Contributions
- Pay employer's National Insurance Contributions
- File an employer's annual tax return
These obligations also apply:
- If your PA/carer earns less than £87 per week in your employment but more than £100 in total (e.g. if they have two or more part-time jobs)
- In short-term employment (i.e. a week or longer)
- To any employment taking place in the UK - irrespective of the country of origin of your PA/carer or yourself
Failure to register as an employer if you are paying your PA/carer above the weekly threshold is an offence, which can potentially lead to heavy penalties.
Consider the following:
Failure to file employer's annual returns by 19 May can result in penalties of £100 per month filed late
Failure to pay all tax/NI liabilities before 19 April results in interest being charged on the amount outstandingAll these legal obligations can be not only complex but also time-consuming, especially for a first-time employer. Without working knowledge of the tax system and current employment law, you are entering a minefield. Businesses use skilled payroll, legal and human resources professionals. Now you can too - at a fraction of the price.