Guidance on the employment status of Personal Assistants
Employment or self-employment?
We have put together this factsheet to help people using Support With Confidence to understand the rules about whether someone is working on a self-employed basis or is being employed. This factsheet provides a summary of how the rules work and also tells you where you can get further information and advice. We always recommend that you get expert advice before deciding if an arrangement is employment or self-employment.
Being self-employed (or employing someone on a self-employed basis) is not as simple as just deciding that you want to work in that way. Her Majesty’s Revenue and Customs (HMRC), who run the tax system in this country, have very specific rules about what may be treated as self-employment and what must be treated as employment.
The law says that it is the nature of the agreement between the worker and the person paying them which determines whether the work is being done on an employed or self employed basis.
This means that a Personal Assistant might work for some people and be self-employed but for others, because of the nature of the work that they do, they will be working on an employed basis. Therefore it is important that people providing services and people purchasing service are clear for each working arrangement whether the work is self-employment or employment.
What are the rules?
In summary, HMRC says that where a Personal Assistant:
works for someone on a long term contract
and their employer tells them what to do, how to do it and when it should be done
this will almost always mean that the Personal Assistant is employed and is not considered to be working on a self-employed basis.
This is the same whether the employer is funded through East Sussex County Council (often called a ‘service user’) or whether they pay for their services themselves (often called a ‘self-funder’)
However, there are lots of factors which have a bearing on whether a Personal Assistant is employed or is providing services on a self employed basis. We tell you how to get further information ad advice below.
How can I get more information and advice?
Deciding whether an arrangement is employment or self-employment is complex. The summary information provided in this factsheet is not enough to make a proper decision about employment or self-employment in the area of Personal Assistants. Listed below are the best ways to get expert advice in this area of the law:
On the HMRC website:
The Employment Status Indicator Tool is a good way of determining whether the arrangement can be undertaken on an employed or self employed basis:
HMRC Self Employment Registration Hotline: 0845 915 4515
HMRC New Employers Hotline: 0845 6070143
If you are an Adult Social Care service user:
If you will be funding the worker using Direct Payments, provided by East Sussex County Council, then you can also contact an organisation called A4e. A4e, are paid by the Council to support service users (i.e. people receiving service from Adult Social Care) to be good employers and to help them with things like employment status, tax rules and insurance etc.
A4e Independent Living Support Service
Charter House, 1 Southbourne Business Park
Courtlands Road, Eastbourne, East Sussex BN22 8UY
Tel: 01323 414674 Email:
Please always seek advice directly from the HMRC or A4e if you are unsure whether the contracts you are entering into are for self employment or employment.
Casual or temporary arrangements
There are some specific rules about casual or temporary arrangements. Please follow the link to view guidance on taking on casual or temporary workers:
Additional Support
If you are a Personal Assistant or a Service Userneeding more advice and assistance on this area of the law, and feel you would benefit from a workshop delivered by HMRC on either self employment or becoming a new employer – please contact the Support With Confidence team as we can help facilitate this if there is demand.
Support With Confidence Team, EastSussexCounty Council
St Mary’s House, 52 St Leonards Road
Eastbourne, East Sussex BN21 3UU
T: 01323 463440
E:
W:
Mina O’Brien22 February 2011