Self-Employed Personal Assistants

Employment status is important because employers are responsible for most employment rights and tax liabilities if the individual is deemed by HMRC to be an employee rather than self-employed. 

There are key differences in tax and National Insurance contributions based on employment status. It’s important to determine the correct category for the people working for you to ensure you meet your legal and tax obligations. 

When you hire a new PA, it is your responsibility to determine their employment status. PPL highly recommends using Gov.uk's Check employment for tax purposes tool, even if the PA or introductory agency states that they are self-employed to check whether HMRC agrees with that position. 

Your PA's employment status refers to whether they are Employed by you or Self-Employed (working for themselves). This applies to all new PAs, regardless of whether they are full-time, part-time, permanent, temporary, or casual.

If your PA is an employee, you, as the employer, are responsible for handling their Tax and National Insurance Contributions (NICs). They are also entitled to paid holiday and may be eligible for a Pension. In this case, your payroll service can calculate the appropriate Tax and National Insurance deductions each time they are paid.

If your PA is Self-Employed, they are responsible for calculating and paying their own Tax and NICs on the payments you make to them. In most cases, determining whether your PA is an Employee or Self-Employed is straightforward. 

The general rule is:

• Your PA is an employee:  if they work for you and do not take on the risks associated with running a business. 
• Your PA is self-employed: if they run their own business independently and are responsible for its success or failure. 

Carers and Personal Assistants (PAs) support individuals with specific needs across various aspects of daily life. Through emotional, physical, and mental assistance, they strive to enhance well-being and promote independence for those in their care. However, like any profession, caregiving carries inherent risks, with numerous potential incidents and accidents that may occur in the course of their duties.

Carers Insurance policies are designed to offer comprehensive protection for Self-Employed Carers, Home Carers, Personal Assistants, and their employers. These policies typically provide liability coverage against claims arising from accidental property damage, personal injury, or associated legal expenses.

There are also specialised insurance policies specifically designed to safeguard Personal Assistants (PAs) against liability claims arising from incidents in which they may unintentionally cause harm to their employer—for example, inadvertently spilling a hot beverage and causing injury.

It is recommended that you check with your Self-Employed PA to ensure they have the right cover in place to protect you and themselves.

If you choose to work with a Self-Employed PA, you must ensure you have a Service Agreement in place between the two of you.

What this means for you:

• You don’t need to take on Employer responsibilities
• You are responsible for ensuring the employment status of the PA you’re engaging is correct
• You have no choice or control over when the PA can work beyond what has been agreed through a contract for services.

What this means for PAs:

• They must tell HMRC that they are Self-Employed
• They won’t get paid through PAYE
• They have no Employee Rights, such as sick pay / holidays / notice periods / redundancy
• They don’t need to register with CQC as a Sole Trader
• They need the correct Insurance including Public Liability Insurance and Clinical Indemnity Insurance
• They can make a profit and develop as a business
• They can work flexibly but have no guarantee of regular work
• They are entitled to protection for their Health and Safety and, in some cases, protection against discrimination
• They have their rights and responsibilities set out by the terms of the contract they have with their client.

Click on the button below for a sample service agreement that may help:

Service Agreement