Care Industry Update On Sleep In Work Pay For Carers
I am sure that you will have seen my article from February 2018: Are Carers being paid enough for sleep in work? Essentially, as a result of a recent ruling in the “Mencap Case” (Mencap V Tomlinson-Blake), as an employer you are legally required to pay carers that work the “sleep-in” shifts the national minimum wage, which for anyone who is 25 years old or over is currently £7.83 an hour.
What you may not be aware of is that as a result of the decision, sleep in carers should be paid the National Minimum Wage. The HMRC are looking back 6 years and are enforcing any tax payments owing as a result. This is happening regardless of whether or not a claim as been brought against you by an employee. The local authorities are not helping with these back payments, so you will have to pay the bill yourselves.
What can you do?
HMRC launched a voluntary scheme in March this year, which if you register for, means you could delay tax payments until March 2019. However, you will need to show that you have back paid your staff for any outstanding salary as a result of this recent ruling. If you want to take advantage of this scheme, then we recommend that you take advice.
What does this mean to you?
You should be back paying staff where you can. Some companies may not have the funds to foot this bill and this is something that you may need to consider, by looking at making savings through restructuring, or valuing your assets and securities etc. If you think you’re exposed, then please talk to Tollers, to discuss what your options are, we are here for you.