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WHAT IS A DIRECT PAYMENT?

A Direct Payment is provided by the Local Authority to allow you, or someone you care for, greater flexibility and control. It is given as a cash sum which can be used to pay for a support package tailored to meet your individual needs

When you receive Direct Payments to employ a carer or personal assistant, HMRC requires you to treat them as an employee.

As an employer, you need to:

  • Calculate pay and pay staff promptly

  • Provide payslips

  • Pay National Insurance, tax and other contributions

  • Submit reports to HMRC

  • Issue paperwork such as P45s and P60s when needed

Our Packages

  • Operate payroll for carers/personal assistants

  • Calculate pay, tax and National Insurance contributions and provide P60s and P45s

  • Calculate holiday pay entitlement and provide advice on Statutory Payments such as Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), notice pay etc

  • Give advice on these areas during office hours

  • Open PAYE schemes with HMRC on your behalf

We can take care of all this, with the choice of either a managed or a self-managed account.  For both types of account, we:

What is the difference between a managed and self-managed account?

Managed Account

1.

We pay your carers direct via a designated personal bank account which we set up for you

2.

We can receive and pay all your invoices directly

3.

We provide payslips and send them direct to your carer

4.

We pay contributions direct to HMRC on your behalf

Self-managed Account

1.

You pay your carer

2.

You receive and pay your own invoices

3.

We provide payslips for you to give to your carer

4.

You pay contributions to HMRC on our advice

Bill Payment Service

For managed accounts, we offer a bill payment service. If you have a large number of invoices to pay each month from care organisations and other service providers you can hand the responsibility of paying these invoices over to us.

Auto Enrolment

As an employer you will have to comply with the law regarding workplace pensions and must provide a pension for any of your Personal Assistants (PAs) who qualify for auto enrolment. The Pensions Regulator will write to you explaining your duties shortly after you become an employer. 

We can’t choose a pension scheme for you, but once you have chosen a scheme, we can:

  • Liaise with The Pensions Regulator to ensure that you comply with the requirements of the Auto Enrolment Legislation

  • Assess and enrol your PAs

  • Produce the statutory letters for your PAs

  • Calculate the employer and employee contributions

  • Pay the contributions to the pensions provider if you have a managed account

What next?

  • Get in touch with us

  • We will answer any questions you have and send you an information pack which includes further details about our services, a payroll calendar, our fee structure and forms to set up an account

  • Complete and return the requested forms

  • Once we receive your forms we will do some identification checks and then contact HMRC to set up a PAYE scheme on your behalf

  • For managed accounts, we will set up a designated bank account.  In order to do this we will need to visit you at a convenient time to carry out an identification check

  • We will confirm arrangements for receiving and sending payroll information

Michael Russell and Company

PO Box 449

Manchester

M45 ODD

Tel: 0161 773 6194

Email: churst@michaelrussell.org.uk

© 2020 by Michael Russell and Company