It’s a temptation when choosing a new employee, especially someone you have sourced yourself, to let them work for you on a self-employed basis. BUT… if that person, be it housekeeper, nanny, carer, live-in or not, works for you full time, it becomes their only job. YOU are then effectively employing them – and that’s how HM Revenue and Customs will see it.
The answer is two-fold. Firstly, go through a reputable established staff agency, The Graham Agency has over 20 years experience and they will point you to associated experts who will sort out the issues for you in the correct way.
Secondly, NEVER take on someone full-time and let them be self-employed. The penalties can be quite severe. Remember, if they work for you full-time, you ARE employing them. HM Revenue and Customs will regard your actions as avoiding National Insurance contributions and income tax.
You may get away with it for a time, but when that person, for example, leaves your “employment”, if you have allowed them to be self-employed, it will come to light when they next seek employment. It’s simply not worth it.