Do you employ a Care Worker / PA? Are you paying the right amount to the HMRC?

Making the PAYE/NICs system fairer. The following article is important for all Personal Budget / Direct Payment recipients who privately pay a PA or care worker. If you live in Kensington and Chelsea and you are not sure if this relates to you, or you are confused about the payments you have to make to the HMRC (Inland revene), please contact the PB Team on 020 8960 8888

From 6 April 2012 HMRC will have a new power to tackle the tiny minority of employers who are determined not to pay over the money they deduct from employees via PAYE/NICs. Where an employer presents a serious risk HMRC will require them to provide a security to protect against non-payment. This will not affect employers who are meeting their obligations on time or those employers who have genuine payment difficulties.
We remain committed to helping businesses who are in financial difficulties. This change will not apply to employers who
• have agreed time to pay arrangements
• are receiving support under the Business Support Service
• only employ personal employees or carers. However, it isn’t fair that those employers who choose not to pay PAYE and NICs to HMRC should gain a significant financial and business advantage over those who do pay, and this power will help us tackle that.
This change supports the Government’s priority of a fairer tax system. It aims to bring seriously non-compliant employers back into the system by paying their share.
We consulted widely about this new power. This approach is not new as HMRC can already require a security for VAT and most of the other indirect taxes.
Where we think a security is necessary we will calculate the amount of the security based on the evidence of the individual case. The employer can appeal to the Tribunal against the notice requiring a security, or the amount. Alternatively they can ask to have their case reviewed first by our internal review team before any Tribunal hearing.
As with the comparable VAT securities, there will be a criminal sanction for not providing a security when one has been required, with a fine of up to £5000.
The most common form of security is a cash deposit held by HMRC or paid into a joint HMRC/taxpayer interest bearing bank account. A security can also be a performance bond which is similar to a third party guarantee. It may be provided by any bank, building society or other financial institution approved by us.
If you have problems paying us please contact us as soon as possible – go to www.hmrc.gov.uk/payinghmrc/problems/cantpay.htm