Self-Employed Personal Assistants

HM Revenue and Customs (HMRC) typically classifies most PA roles as employment, meaning very few PAs are genuinely self-employed. 

Employment status is important because employers are responsible for most employment rights if the individual is deemed 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. 

Your PA's employment status refers to whether they are Employed by you or Self-Employed (working for themselves). When you hire a new PA, it is your responsibility to determine their employment status. 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.

**However, 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.