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Tax problems with care costs

Must a Charity which assists individuals paying the cost of their care be concerned with their tax?

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A Charity assists individuals discharge the cost of their care. Must the charity be concerned with whether

a]the carers are paying their own taxes

or

b] If those carers are employees of those for whom the care is provided, so that PAYE and NIC are at issue?

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30th Apr 2019 18:44

Doubt it - assuming the payments are being made to individuals to engage their own care.

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30th Apr 2019 19:07

Not necessarily, but if I were the charity I might ask recipients for an undertaking that they will follow all relevant legislation when spending it...

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30th Apr 2019 22:32

Nothing to do with liability for tax, but for me it would be good practice if the charity took the time to acquaint the individuals with their obligations and help to get started. As opposed to just bunging them a wedge of cash and expecting them to work it all out for themselves

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01st May 2019 13:09

The whole arrangement probably needs more thought. It isn't just a matter of handing over some cash.

It's not just PAYE and NI, but minimum wage, holiday pay, sick pay, etc. And Health and Safety (are the carers properly trained to avoid injury or other harm?), Employers Liability insurance, motor insurance if they are driving between carees.

Some may dismiss these things as nanny state or whatever. But would you want to be in a poorly paid job without the protections that the law grants and that you probably have in your job?

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