Direct payments, 2 carees, 1 or 2 employers?

Benefits, finances and funding
1

Hi all,
I’m new to all this and trying to find info for a friend, so my apologies if this has been covered - I couldn’t find it…
My friends elderly parents both have care needs and are considering employing one PA/carer to care for both of them, funded by each of their direct payments. In the eyes of the law and hmrc, can they be considered as 1 employer i.e. the X household? Or would they be considered 2 separate employers, pay 2 lots of employer expenses and the employee have 2 jobs and pay 2 lots of tax etc.? I’ve searched on advice pages, websites and hmrc, but the advice only ever seems to consider one caree, not 2. Maybe I’m just not using the right search terms or maybe the answer is obvious…
If anyone has experience of this and can clarify, I would love to hear…
Thanks,
Jay

2

Hi Jay.

Employment law ?

One for the CAB :

https://www.citizensadvice.org.uk/
( Bear in mind the working week directive … 48 hours … if only one carer … and no potential cover for holidays / sickness ? )

I asume CHC / NHS Continuing Healthcare is NOT a factor … for either parent ?

3

Interesting question.
However, the real issue is WHO is going to deal with the DP administration? Have SSD included a “management” amount in the care package, so that a third party can manage the account and deal with all this sort of thing for them??
Do not agree to manage it yourself, let the council recommend or appoint someone to deal with this sort of thing, as it can get very complicated.

4

Thanks, both. I am just trying to help them weigh up their options. I have emailed a payroll company (and would recommend they outsourced all that malarkey anyway, from what I’ve read!), as I realise it is more about employment law, but haven’t heard anything… Just thought somebody on here may have had experience of this. I’m not sure how they are funded-LA I think. Or for how many hours… Probably a lot less than 48hrs though. The answer, I think, is probably 2 employers as the LA will require separate bank accounts for payments, I imagine, and care given would need to be traceable for them too. I have probably answered my own question, but if anyone knows for sure…? Anyway, thanks guys,
Jay

5

Your welcome.

6

If you look at the Care Act Guidance it talks about Direct Payments being used at the discretion of the user, not the LA, as long as it’s spent on care for the person concerned, it’s OK. You can never really be certain who is benefitting from some things, like meals, cleaning, etc. etc.