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.
If you would like to speak with one of our specialist advisers and discuss this further, please email solutions@ellacotts.co.uk or call us on 01295 250401.
* Information for readers: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
Business Newsletter – February 2025
