These information sheets have been provided as a guide only and should not be used as substitutes for specialist advice. We try to keep them updated, however, this cannot always be guaranteed.
If you employ a Personal Assistant you may have to deduct tax and national insurance from their wages or salary and pay it over to H M Revenue and Customs, together with any Employers National Insurance due.
For current tax and national insurance rates click here
New Employees
When a new employee starts they should give you a P45, which gives details of their previous employment. They should give you two parts of the P45. If they do not have a P45, you should ask them to complete a form P46 (unless they are working for you for less than one week). If they are liable to pay tax and national insurance you need to send the P46 to the H M Revenue and Customs. If not, you should keep it in case the tax office request it in the future. If the employee earns less than the earnings threshold there will be no tax or national insurance.
For any employee who earns above the current earnings threshold you will need to run a payroll scheme. Most people employing their own personal assistants use the Simplified Deduction System. This is simple to operate and can be done online if you wish.
If an employee has more than one employment you may need to deduct tax from them, even if you pay them less than the earnings threshold.
Speak to HM Revenue and Customs or WDPSS if you need further advise. If you do not deduct tax and national insurance when it is due, HM Revenue and Customs can claim it from you at a later date, together with interest and penalties.
WDPSS offer a payroll service if you would rather we did these calculations for you.
National Insurance numbers
You should always ask your employe for their NI number. (It should be on the P45 or P46). If they do not have one they should contact their local Job Centre Plus office.
Paying Self Employed Personal Assistants
Your Personal Assistant cannot just elect to be self-employed. This is decided by the local tax office depending upon the facts of the employment relationship. It is extremely rare for them to agree that a personal assistant is self employed.
For more information on this subject ring the New Employers Advice Line 0845 6070143.
FEDS
Tips and advice on using compassdisability.org.uk