Employing a carer or other domestic help in your home

The way you report PAYE (Pay As You Earn) to HM Revenue & Customs (HMRC) changed from 6 April 2013.

This guide tells you what you need to do when you employ someone to provide care in your home and what to do if you used the paper simplified scheme for 2013-14.

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If you start to employ a carer in your home

If you employ a carer in your home you may be treated as their employer. This means you must register as an employer and you may have to deduct Income Tax, National Insurance contributions (NICs) and possibly student loan deductions from the money you pay them. You may also have to pay employer's NICs.

First you must register as an employer with HMRC by calling the HMRC New Employer Helpline. They will ask you if you want to use paper or an electronic software system to keep your pay records and send information to HMRC. To use paper you must qualify for a concession. To check you are eligible to use a paper payroll and reporting system before you telephone HMRC, read 'Guidance for employers exempt from filing or unable to file online'.

Find contact details for HMRC's New Employer Helpline

Guidance for employers exempt from filing or unable to file online

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What to do if you have operated the Simplified scheme for 2013-14

At the end of the tax year 2013-14, you must complete your end of year tasks on paper - and then be ready to start reporting PAYE differently after 6 April 2014.

If you currently send your end-of-year information to HMRC on paper, you will be sent the forms you need to complete. You will need to return these to HMRC on a quarterly basis. You can find more information about who is eligible to send their information on paper and more details in the guide 'Guidance for employers exempt from filing or unable to file online'.

Guidance for employers exempt from filing or unable to file online

Alternatively you may wish to start filing your information online. If so, more information can be found by following the links below. 

Preparing to operate PAYE in real time

Software packages and other payroll options

Go to HMRC Online services to sign up to file your returns online

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Completing an Employer Annual Return for a Simplified scheme

At the end of the 2013-14 tax year you'll need to complete an Employer Annual Return - form P37. HMRC will send this form to you. It provides a summary of the information on the P12 deduction cards you've completed for the tax year and must be filed on paper by 19 May 2014.

Completing the paper form P12

You must add up the figures from your P12s yourself in order to complete form P37. You then sign the declaration and certificate on the P37 and send it together with the completed P12s so they reach HMRC by 19 May 2014. HMRC will send your employee a P60.

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