Employers' Information
Tax Office Information
There are several ways of paying your PA. Almost always however PA's are paid as employees. If your PA is to be your employee then you will need to contact the Inland Revenue to register as an Employer. You will be responsible for ensuring that the right amount of tax and National insurance is paid (Don’t worry, you should be able to get support with this from your local direct payment support service).
However if you choose to contract your PA as a self employed worker they will be responsible for paying their own tax and national insurance and they should issue you with an invoice at the end of every pay period for your records. You will also need to get some evidence from the tax office that your PA is registered as self employed for the job they are doing with you. If your PA has not registered with the Tax office and is not paying tax and National insurance you could be liable for their payments if you have not obtained evidence that your PA was registered self employed and they have not been issuing you with an invoice for your payments.
While it may sound attractive to have your PA on a self employed basis i.e. relieving the PA user of the responsibility, it has several drawbacks. It could give PA's the right to send someone in their place if they cannot come to work. It also means they have few employment rights.
HM Revenue and Customs produce a straight forward leaflet numbered IR56 which helps you find out if someone is employed or self-employed. You should follow the advice given in this leaflet.
The Inland Revenue (now called HM Revenue and Customs) can help you if you are unsure and there is a helpline below that you can ring for assistance.
Employers Helpline (HM Revenue and Customs)
Established employers
0845 714 3143 Mon – Fri 8am to 8pm
Sat & Sun 8am to 5pm.
Expert advice given to established employers on PAYE, NIC, Statutory Sick pay, Maternity Pay, Tax Credits, Stakeholder Pensions, Student Loan Repayments and construction industry
New Employers
0845 607 0143 Mon - Fri 8am to 8pm
Sat & Sun 8am to 5pm.
Expert advice given to new employers on PAYE, NIC, Statutory Sick pay, Maternity Pay, Tax Credits, Stakeholder Pensions, Student Loan Repayments and Construction Industry
Employer's Orderline (HM Revenue and Customs stationery) 0845 7 646 646
HM Revenue and Customs Textphone 0845 602 1380
You can get advice on many aspects of tax and National Insurance including Statutory Sick Pay (SSP) and Maternity Pay (SMP) from the above numbers you can also log onto the HM Revenue and Customs website and there is a link at the bottom of this page. They can put you in touch with your local Business Support Team who will have become more and more used to PA employers. They will often come out and support you with your particular support needs, they can also send you the following packs:
For the Simplified Deduction Scheme ask for a 'Domestic Scheme Starter Pack'. This should include a P16 'How to Fill in the Simplified Deduction Card' and a P16a 'Taking on a New Employee': (see Payroll schemes below)
For the Pay As You Earn Scheme (PAYE) you need a 'New Employer's Annual Pack'. Also ask for a copy of the 'Employer's further Guide to PAYE'.
Follow this link to the HM Revenue and Customs for more information www.hmrc.gov.uk