Being paid through Direct Payment

more777

Forgive me if this is in the wrong place. I have had a look through and cant really find anything thats answers my query.

My mom gets direct payment monthly and uses it to pay for two carers thorough an agency, three times a day as she is not mobile. I do everything else for her (cooking, cleaning, shopping etc) and visit everyday to prepare her evening meal and sort out any bills. Until now she has always given me £10 here and there for petrol. However sometimes the carers dont show up on time ( or at all) and i end up doing their work as well on top of what i do already and my mom wants to pay me for this.

We have contacted the company that deal with her direct payments and they have said i need to fill out a carers form. But what I am confused about is. If she pays me through the direct payment, do I have to register myself seperatley to pay tax on what she gives me as a second job, as i work full time during the day.

I hope it makes sence.

Penny-Pincher!!

MORE777 wrote: »

We have contacted the company that deal with her direct payments and they have said i need to fill out a carers form. But what I am confused about is. If she pays me through the direct payment, do I have to register myself seperatley to pay tax on what she gives me as a second job, as i work full time during the day.

I hope it makes sence.

Yes, you would have to register as self-employed also and any income over your personal allowance would be taxable. You will need to provide a receipt covering what work you are doing for her and the amount she has given you.

HTH

PP
xx

more777

I called my tax office yesterday but no one seemed to know much about it and kept saying its an unusual situation. Im sure there must be lots of people who work full time and still care for someone!!!!!!!!!!!!!!! am confused.

Man on the phone told me i shouldnt have to register and to just put it in writing once i start getting paid and they will write back to me then!!!!!!!!! not sure if thats right or he was just trying to get me off the phone!!!!!!

lil_me

Careful as sometimes Direct Payments are picky about paying relatives for care.

What you can't use direct payments for

You cannot use direct payments to:

• pay for permanent residential accommodation - but you may be able to use direct payments to secure occasional short periods in residential accommodation, if your local council agrees that is what is needed
• secure a service from your spouse or civil partner, close relatives or anyone who lives in the same household as you, unless that person is someone who you have specifically recruited to be a live-in employee (other than in exceptional circumstances, which your council may agree with you)

If you're not working through an agency I think you will need to register as self employed for this work, or your mam will have to pay your contributions IIRC. This sites had a few posts about direct payments carers inc this one http://www.youreable.com/forums/thread.jspa?threadID=50100&tstart=105

vlad111237

My grandad gets direct payments and uses them to pay me to be his sole carer. There is a company called Penderels Trust who set everything up for us (contract of employment, tax returns etc) and I send a time sheet to them every month and they issue a wage slip to me, they even sort out any pay rises etc. It was a free service as they work with (and get paid by, I presume) social services and I believe they have offices all over the place. Google them.

I would phone the social worker, explain the situation and ask if Penderels can become involved to help set it all up. Alot easier that way for you both and you'll know everything has been done by the book.

Hope this helps.

EDIT: Just to add that I am not registered as self employed, my grandad is my employer! I get paid holidays and have a notice period just like a normal job.

LizzieS_2

You are unlikely to be able to claim carer's allowance in your own name. Claims can only be paid where the claimant is earning below a certain weekly amount (£90pw though not sure if that is 2007 or 2008 figure).

more777

Thanks all. The company who helped set up my moms payments is called Pendrels Trust so I guess I should go back to them?!!! They issued the original forms for me to complete but i didnt know if I completed those my mom would then be my employer and she would get money taken from her as an employer for taxes and stuff.

As far as I am aware Pendrels do charge for some of theier services as I complete my moms three monthly returns for her direct payment and they would charge if they did it for her.

I think I will phone them.......my head hurts....LOL.

vlad111237

I have had a look in my Penderels Trust handbook where it says that some local authorities will pay Penderels direct for their payroll services while other times the council will put extra money into the direct payments account that the user has to cover Penderels expenses. Penderels will then invoice your mum whereupon she would send them a cheque from that account (thus she would not actually be paying for it out of her own pocket).

Penderels Trust sort out my grandad's tax returns for him and just send us a slip that we need to send off to the Inland Revenue with a cheque. This is for my (as paid carer) national insurance contributions and tax, grandad doesn't pay for it, it comes from the direct payments money.

My grandad has to make a contribution towards his care but this is means tested so if you only pay if you have enough income coming in. I am not registered a self-employed as I have an employer (my grandad).

Once a month I send a time sheet off to Penderels and cash my cheque when I get my wage slip. Once a quarter I fill in his tax return sheet and post to Penderels to deal with (this is something my grandad should do, not me, but he is 88 years old so he can't do it!). The only thing my grandad ever has to do is sign my timesheet and cheques so there's not alot for any of us to do.

Please contact me if you have any more questions. x

more777

Thanks Vlad111237. I think your situation is very similar to mine. My mom also pays a contribution to her care which goes directly from her account to her account for direct payment. I also fill out her forms every quarter as she wouldnt be able to do it herself. Am happy to know there are others out there in the same situation as i was starting to feel our situation was a bit weird!!!!

I have emailed Penderels Trust today so hopefully should all be sorted quite soon.

notlongnow_2

Can YOU not be paid the direct payment and social services pay for a home care call?

This is possible before people say it isnt..lol. We had a situation like this yesterday. Patient gets 2 x homecare calls and relative also gets XX amount via her mum and direct payments to continue the care when homecare are not there.

yes it is taxable. Your mum will have a social worker who you can call and ask for your mum to be re-assessed. Tell her you want to be her paid carer. You will receive carers allowance plus your mum can pay you her direct payment money. Obviously this is after an assessment by the Social as to how much care your mum needs. You can chose anyone to care for her mum and to be paid via direct payment but they do have to fill in a tax return so it cant be paid 'back- hand' to someone.

In our experience *most* private homecare providers are pants and many service users chose whom they want to be their carer, as thats what direct payments is for.

more777

You are right ALL private homecare providers are pants. I should know. I think we have had the services of nearly all of them within a five mile radius. However direct payment is in place of social services. It is a service they use so people can arrange thier own care rather than the social providing it, which in our experiance was just as bad. I cant get carers allowance as i only do a few hours each evening as i work full time and she has private carers.
I must say the last few years has made me consider a career change. Thinking of becoming a social worker!!!!!