Carer Payroll Services UK
Carer Payroll Services for UK Families
How to Set Up Carer Payroll Correctly
Step 1
Agree on pay
Step 2
Put a contract in place
Step 3
Understand your legal obligations
Step 4
Choose a carer payroll provider
Step 5
Set up payments and get into a routine
Why You Should Always Agree a Gross Rate
If you agree a net rate with your carer, either you or your carer could lose out significantly. Here’s why:
If you agree a net rate with your carer, you take on the risk of covering all the tax and National Insurance on top – no matter how high it gets. Tax codes can change, and you could end up liable for tax from a period before your carer even started working for you. No reasonable business would accept that arrangement, and you shouldn’t either.
A net rate also means your carer misses out on tax refunds they’re entitled to – for example, after a period of lower earnings or a gap between jobs. And over time, they’ll lose out on the benefit of any increases to the personal tax-free allowance.
Always negotiate a gross rate. We’ll show you exactly what your carer will take home, or you can use our free pay calculator to work it out in seconds.
Why a Written Contract Is Important
Register NowA clear employment contract prevents disputes before they start. It sets out exactly what’s expected on both sides – pay, hours, duties, holidays, and notice. Every client who registers with us gets access to a template contract drawn up for carer employment, so you don’t have to start from scratch.
What You Are Responsible for as an Employer
Taking on a carer means taking on a set of legal obligations. Here’s what you need to manage – and what we handle for you.
In a hurry? Register now and we’ll have everything moving by the next working day.
Registering with HMRC
You need to register as an employer with HMRC before your carer’s first payday. We do this for you as part of the setup process.
Monthly PAYE deductions and reporting
Each time you pay your carer, you must deduct the correct income tax and employee National Insurance and report it to HMRC through RTI (Real Time Information). We handle this automatically and send you a clear summary of exactly what to pay and when.
Your carer's employment rights
Your carer is entitled to paid holiday, the National Minimum Wage (or National Living Wage if they’re 23 or over), and Statutory Sick Pay if they’re eligible. We’ll walk you through all of these when you register.
Pension auto-enrolment
If your carer earns above the threshold and meets the age criteria, you’re legally required to enrol them in a workplace pension scheme within three months of them starting. We’ll let you know if and when this applies and guide you through it.
What to Look for in a Carer Payroll Provider
Most payroll providers will cover the basics – payslips and HMRC payments. But many add charges further down the line that weren’t made clear at the start. Before you sign up with anyone, make sure you know exactly what’s included and what costs extra.
Be wary of providers who try to sell add-ons you don’t need, such as additional insurance. In most cases your existing household insurer will cover you at no extra cost, so check there first.
Our annual subscription starts from £260 and covers monthly payroll for as many carers as you employ during the year, with no hidden charges.
If your carer earns over £10,000 per year, pension auto-enrolment will apply at some point. Most providers either leave this to you or charge extra to manage it. We give you two options:
Pension option 1
Choose your own pension provider and deal with them directly – we’ll calculate and deduct contributions at no extra cost.
Pension option 2
Use our fully managed NEST pension service for £60 per year. We set it up and handle everything.
What's Included and What Costs Extra
No extra charge for
- Paying a second employee alongside, or paying a temp when covering sick or maternity leave
- Setting up or closing down your PAYE scheme
- Claiming tax refunds, or funding for SMP
- Backdated payroll problems
Additional charges
- Weekly payroll: an additional £70 pa. We want to discourage weekly pay because of the extra work created for you and for us, with much tighter deadlines for notifying HMRC if anything changes. Very few people are paid weekly nowadays; monthly pay is best practice. If you want weekly, we can do it, but do try to persuade your carer to accept monthly pay instead. We can help by working out advances or loans to avoid any hardship issues.
- Our optional pension management service: from £90 pa
How to Pay Your Carer
Paying on time every month is one of your core responsibilities as an employer. Here’s how most families manage it, and how we support each approach.
Monthly Pay
Paying monthly in arrears is the simplest and most common arrangement. We can base it on a fixed monthly salary or on actual hours worked, and we’ll handle the calculations either way.
Setting a regular payday
We recommend picking a consistent date – usually the last working day of the month or a fixed date like the 28th. Consistency makes things easier for both you and your carer.
Paying by bank transfer
We’ll confirm the exact net figure each month and you pay your carer directly. You stay in full control of your own bank account at all times. Once things are settled, a standing order works well.
Cash in Hand
Cash is legal, as long as it’s run through payroll. Paying cash without declaring it to HMRC is against the law. If you’re unsure about your current arrangement, contact us for confidential advice.
Tax-Free Childcare
If your carer is registered with the relevant authority, you can use your Tax-Free Childcare account to pay their wages and HMRC directly. Ask us for our free step-by-step helpsheet.
Get in touch with us
Office and New Enquiries
(Monday to Friday 9am to 5pm)
(Allow next working day for a response)
West End House
Blackfriars Road
Nailsea
Bristol
BS48 4DJ
