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I do not receive any benefit. I am employed full time.
Oh sorry, I see what you mean, No it's my mother, she receives a ILF (Independent Living Fund) award as well as Direct Payments from the council. She is allowed to employ personal carers to help her cook, clean dress, gardening and taking her out etc...
She has asked me to help with the gardening and to take her out. She will be paying me £50 per month. I need to know if I need to set myself up as self employed and pay taxes.
How much will I need to pay? Is there a tax exception for self employed careers?
I am afraid the information you have been provided with is incorrect - as some.all the payment comes form Direct Payment that your mother received from the local authorities, she in fact has to engage you as an employee. You certainly cannot have this treated as self employment and to add this in as OTHER INCOME is not considering the correct legislation against the payment and the way in which they are - and for the purposes they are made.
That means your mother (or you on hr behalf) have to operate PAYE - so basic rate tax on these payment as all your allowances are being utilised against your main employment operate many of these schemes for Direct Payment clients -
And its imperative that its PAYE under the employment status legislation. So you should contact HMRC are ask for an Employer scheme to be set up - and there will only be tax due and not National Insurance (as its below the National Insurance limit)
My advise comes from 26 years of working.pratising and educationg on PAUE (amongst other tax regimes)
Link here to contact HMRC to set up a PAYE schemehttp://www.hmrc.gov.uk/payerti/getting-started/register.htm
Let me know if you have any concerns -