Can someone explain this workplace pension thing...?

[HotJambalaya]

So I'm looking at hiring a full time carer for my father. She'll be living in, and taking care of him, the usual sort of stuff.

We haven't fixed the salary yet, but she said she'd be "self employed" and that I would be paying her (for example) £450 per week, and my responsibility according to her ends there, from that she will pay her tax, NI and anything else that needs paying.

Is that correct? Is that how it works? I keep seeing ads saying that even if you employ only 1 person you have to offer a workplace pension... I don't even know how to offer a workplace pension!

[PurpleMoonlight]

If she can justify to HMRC being self employed you have no responsibility for a workplace pension.

However, if you are the only client she is working for I suspect justifying true self employment will be very difficult.

[The Beast of Codfin]

HotJambalaya said:

So I'm looking at hiring a full time carer for my father. She'll be living in, and taking care of him, the usual sort of stuff.

We haven't fixed the salary yet, but she said she'd be "self employed" and that I would be paying her (for example) £450 per week, and my responsibility according to her ends there, from that she will pay her tax, NI and anything else that needs paying.

Is that correct? Is that how it works? I keep seeing ads saying that even if you employ only 1 person you have to offer a workplace pension... I don't even know how to offer a workplace pension!

I can recommend speaking to Now Pensions, no affiliation. They will look after you should you need to have a pension scheme for her.

[The Leaper]

Try The Pensions Advisory Service helpline 0300 123 1047. TPAS's services are all free. They are a government sponsored not-for-profit organisation, in other words a quango.

R.

[megaphone]

You need to seek proof they are self employed and are paying income tax etc, make sure you get monthly/weekly invoices from them. What about insurance? Are you covered if they have an accident? Check with your insurer.

Are they coming through an agency?

Edited by megaphone on Monday 7th December 08:56

[Eric Mc]

On what grounds is this individual "self employed"?

Is she running her own business?