Employing care worker to help family member

Sole Director wants to employ care worker through his company

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Hi, A client sole director/shareholder wants to use her company to employ someone they personally know and trust, as a care worker, to take care of an ageing family member. The company's activity is totally unrelated to the provision of care so this would not be a business/trading relationship. The director also suggested reducing her own salary in order to pay the carer a salary under a full employment contract. Can anybody comment on the possible tax and other implications or make any suggestions. Very grateful for inputs. I can think of at least one issue, there must be a benefit in kind created somewhere!?.

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By Hugo Fair
07th Jun 2022 13:14

Of course there's a BiK (or equivalent).

As you said "The company's activity is totally unrelated to the provision of care" ... so the payment is being made on behalf of the director not the company (it can't be made in vacuo). Whether that is earnings / a DLA / a BiK or whatever depends on how the contract is established.

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By meadowsaw227
08th Jun 2022 10:57

Bargepole comes to mind instantly !

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