Paying Personal Assistants April 2008 – April 2009
Wages and Employer’s Costs
When you are working out the cost of employing Personal
Assistants, you need to allow both for the wages you will pay
(including tax and National Insurance) and for the other costs that
you will have as an Employer.
Employer’s costs are things like Employer’s National Insurance
Contributions, holiday pay, bank holidays, Statutory Sick Pay and
administrative costs (e.g. advertising, insurance, phone calls,
Criminal Record Bureau checks, training, payroll,
stationery). It also allows for some contingency.
The table below shows Bath & North East Somerset’s
recommended PA wages (including tax and NI) and the Employer’s
costs. These are calculated at 30% of the
wage. The total amount is the figure you should use when
calculating how many hours you can afford.
These rates are only guidelines. You can work out your own
provided that they comply with employment legislation.
|
Hours |
PA wage |
Employers’ costs
(30% of wage) |
Total |
|
Monday - Friday
7am to 10pm |
£7.68 per hour |
£ 2.31 per hour |
£9.99per hour |
|
Monday – Friday
Unsocial hours
before 7am/after 10pm |
£9.83 per hour |
£ 2.96 per hour |
£12.79 per hour |
|
Saturday – Sunday
7am to 10pm |
£8.83 per hour |
£ 2.66 per hour |
£11.49 per hour |
|
Sleeping nights
10pm – 7am |
£36.87 per night |
£ 11.07 per night |
£47.94 per night |
|
Waking nights
10pm – 7am |
£69.20 per night |
£ 18.77per night |
£89.97 per night |
|
24 hour cover |
To be confirmed |
To be confirmed |
To be confirmed |
Set-up costs
You will need to pay for some things like insurance and
recruitment before you employ your PA’s. You can pay for
these privately and then pay yourself back out of your Budget
payments when they start. Alternatively, you can arrange for
some of your Budget to be paid to you upfront to cover these
initial costs. After that, they can be met out of the
Employer’s costs.
You should allow £90-£100 to pay for employer’s insurance cover
for a year.
We recommend that all potential employees are checked by the
Criminal Records Bureau (CRB) and, in some circumstances, we may
require that CRB checks are done. CRB checks can be organised
through Social Services. The cost of them should be included
in the Support Plan Costing. The cost is £42.30 (£36+VAT) per
CRB check.
Using Self-Employed Personal Assistants
There are rules about whether someone is considered
self-employed for tax purposes. It is HM Revenue and Customs
that decides whether someone is self-employed and not the
individual themselves. As a rule, they would consider most
people providing care as employees.
This is a complex area. We do not recommend that you use
self-employed personal assistants. However, if you do, you
need to get advice and check their self-employed status. You
should read the leaflet produced by HM Revenue and Customs ‘IR56 -
Employed or self-employed? A guide to employment status for tax and
National Insurance contributions’. This is available by
contacting them on 0845 9000 404 or going to their website:
www.hmrc.gov.uk.
Paying Personal Assistants’ expenses
There may be occasions on which you want to use some of your
Budget to pay expenses to your Personal Assistants. If so,
this needs to be agreed in your Support Plan.
It is extremely important only to reimburse out of pocket
expenses and to keep copies of all receipts. Money over and
above out of pocket expenses is regarded as income by HM Revenue
and Customs, and is therefore taxable.
We may ask to see receipts and claim forms when your Individual
Budget Account is audited. Expenses should be reimbursed by
cheque.
Social Services has limits on the amount of money that can be
reimbursed as expenses. If you think that you will need to
exceed these limits or will need to reimburse other expenses, it
must be agreed in advance in your Support Plan.
For details of the limits, please ask for the Information Sheet
Paying Expenses.
We recommend that you get relevant information and advice before
coming to any agreement about expenses with your Personal
Assistant.
If you are receiving support from the Shaw Trust, they will be
able to provide you with more information. You can also
contact HM Revenues and Customs. Tel. 0845 010 9000
Website: www.hmrc.gov.uk
This information about can be made available in a range of
community languages, large print, Braille, on tape, electronic and
accessible formats from the Information Officer (information_officer@bathnes.gov.uk)
- Tel (01225 477983) Fax (01225 396489) Minicom (01225
477043)