Employer but not employed

nannytone_2

Icequeen99 wrote: »

Do you employ carers directly nannytone - are you the 'employer' for HMRC purposes?

IQ

dont call her a carer ... i don't like it and neither does she
she's my PA, and yes ... i am her employer.
i don't deal with HMRC myself, the payroll company does everything employer/employee related on my behalf

cattermole

nannytone wrote: »

dont call her a carer ... i don't like it and neither does she
she's my PA, and yes ... i am her employer.
i don't deal with HMRC myself, the payroll company does everything employer/employee related on my behalf

Yes a lot of people who are DP users take the option to use a 3rd party agents to act on their behalf with HMRC some small businesses do too if they use a payroll agent.

Particularly now online monthly filing is compulsory and all end of year returns.

nannytone_2

cattermole wrote: »

Yes a lot of people who are DP users take the option to use a 3rd party agents to act on their behalf with HMRC some small businesses do too if they use a payroll agent.

Particularly now online monthly filing is compulsory and all end of year returns.

plus all the changes regarding compulsory pension contributions.

i received a letter from HMRC waffling about it so i called the payroll company and all i had to do was 'nominate' them to deal with it

cattermole

nannytone wrote: »

plus all the changes regarding compulsory pension contributions.

i received a letter from HMRC waffling about it so i called the payroll company and all i had to do was 'nominate' them to deal with it

Yes it's a problem with the funding as well to cover the extra costs for pension contributions for DP users, most LA's are not increasing their hourly rate to allow for it!

A lot of DP users could be exempt if their carers earn less than £10,000 per annum.

How are they getting around it then the Support Services? Are they using an approved Pension Scheme they have chosen on behalf of the employers/DP users?

nannytone_2

i really have no idea at all.
the HMTC letter did say that it could be passed onto a payroll company, so maybe these companies have been given instructions?

im not quite sure why, but since april, i have stopped making employers NI contributions ( something about only having 1 employee? ) so that money is available for the pension contributions

cattermole

nannytone wrote: »

i really have no idea at all.
the HMTC letter did say that it could be passed onto a payroll company, so maybe these companies have been given instructions?

im not quite sure why, but since april, i have stopped making employers NI contributions ( something about only having 1 employee? ) so that money is available for the pension contributions

The Support Service in your case would still need to be deciding on which Pension Company they were going to in effect invest the DP user's employers pension and employees contribution in, curious as to how this was being handled.

http://www.thepensionsregulator.gov.uk/employers/what-makes-a-good-scheme.aspx

Yes re your second paragraph the first £2000 of NI contributions is now exempt for employers and clearly that will help small employers with private pension contributions.

https://www.gov.uk/claim-employment-allowance

So good point because of the £2000 NI exemption it will probably not have a cost factor on most DP users or very small employers.

I tend to think though as a side issue that a lot of the automatic enrollment schemes will not really solve the pension problems for the future as they offer the employer the option to just basically put the basic amount in with pretty much no guarantees of anything for the employee.

Icequeen99

I was just looking up the auto-enrollment situation for our new care arrangements.

As I am doing the payroll myself I found this tool http://www.disabilitytaxguide.org.uk/ and some useful info on auto-enrollment. It seems straightforward enough.

IQ

nannytone_2

cattermole wrote: »

The Support Service in your case would still need to be deciding on which Pension Company they were going to in effect invest the DP user's employers pension and employees contribution in, curious as to how this was being handled.

http://www.thepensionsregulator.gov.uk/employers/what-makes-a-good-scheme.aspx

Yes re your second paragraph the first £2000 of NI contributions is now exempt for employers and clearly that will help small employers with private pension contributions.

https://www.gov.uk/claim-employment-allowance

So good point because of the £2000 NI exemption it will probably not have a cost factor on most DP users or very small employers.

I tend to think though as a side issue that a lot of the automatic enrollment schemes will not really solve the pension problems for the future as they offer the employer the option to just basically put the basic amount in with pretty much no guarantees of anything for the employee.

ive had the pension conversation with my PA.
she wanted to put a considerable amount of her monthly wage into a pension.
she changed her mind when i said her hourly rate would have to drop to cover my contribution towards it


i could manage the payroll side of things myself but chose not to because i prefer to have no access to the direct payment money at all. that way nothing can ever go wrong and fingers point in my direction

Icequeen99

My DP won't cover pension contributions. Is that the same for you Nannytone?

Did your payroll company advise you to tell your PA that regarding reducing their hourly rate? I believe employers can get in trouble if they encourage or force people not to join a pension scheme.

IQ

nannytone_2

why do you say your direct payments wont cover pension contributions?

i get an amount paid into the payroll managed account every month. i don't spend it all. i have a contingency for things like sick pay ( so i can get a replacement for my PA) or if there is a specific piece of equipment that i need ( i ask the DP team before i buy anything for them to O K it)
i get 100 funded hours every month, and still have enough paid in to 'save' about £25 after the payroll fees