Hiring a carer or cleaner · Guide 7 of 7
Employing a carer, or using a self-employed one
When you arrange a carer yourself, there are two main ways it can work, and the difference matters for both of you.
A self-employed carer
A self-employed carer runs their own business and takes responsibility for its success or failure. They're not paid through PAYE, and they sort out their own tax and National Insurance. They usually decide how they work, can work for other families, and set their own rates. Carers listed on Carers & Cleaners are self-employed.
An employee
If you control exactly how, when and where someone works, they may count as your employee, whatever you call the arrangement. An employee works under a contract of employment and has extra rights, such as sick pay, holiday and redundancy pay.
Employment status depends on what actually happens day to day, not just on what a contract says. And someone can be self-employed for tax but have a different status in employment law.
What an employer has to do
If you employ a carer, you become an employer. That usually means:
- registering with HMRC as an employer and running PAYE for tax and National Insurance
- paying at least the National Minimum Wage
- statutory sick pay, holiday pay and other statutory pay
- workplace pension contributions, where they apply
GOV.UK has a step-by-step guide to employing someone for the first time.
Direct payments
If the council pays towards care as a direct payment, you can use it to employ a carer or personal assistant. The council should offer support with the employer side.
Checking where you stand
HMRC's free Check employment status for tax tool gives HMRC's view based on your answers. If you're unsure, it's worth taking advice. Whichever route you choose, agree terms in writing.