If you’re bringing a carer into your home, you might think managing payroll yourself is straightforward — after all, it’s just one person, right? But in reality, running payroll properly involves more than simply paying wages. Attempting a “do-it-yourself” payroll approach can lead to unexpected complications. Here are four of the biggest challenges domestic employers often face.
Keeping Up with Deadlines
As an employer, whether for one carer or more, you must operate a PAYE scheme. You’ll need to submit various reports to HM Revenue & Customs (HMRC) on time. However, an external report for HMRC noted that understanding of these deadlines was the biggest challenge for small employers, given they generally have limited knowledge of the processes surrounding PAYE.
The submissions you’ll need to make include:
- A Real Time Information (RTI) Full Payment Submission (FPS) on or before each payday.
- A Real Time Information (RTI) Employer Payment Summary (EPS) which is sent by the 18th of the following month, if you haven’t paid anyone in a given tax month.
- A P11D (the employee’s expenses and benefits), which must be reported to HMRC by the 6th of July.
- A P60 which must be submitted annually and then sent to the employee by 31 May.
- When the carer leaves you must tell HMRC the leaving date, submit their final payslip, submit a P45, and provide the employee with their part of the P45, which must be done on their final day of employment.
Miss any of these deadlines and HMRC may fine you up to £200.
2. Submitting Accurate Information
Even when you meet the deadlines, doing the filing accurately is absolutely critical. Incorrect figures will lead to HMRC holding different numbers than the sums paid, and this can trigger a bill for additional tax, with daily interest applied. The employee may also underpay their tax, but you would be at fault and liable to pay to rectify the error. However, it’s easy to make mistakes if you’re doing it yourself without regular payroll experience.
3. Dealing with Failed Submissions
Your submission might fail for many reasons: wrong filing period, system glitches, cancelled payroll schemes, or accidentally submitting an EPS on the incorrect date.
For a domestic employer who doesn’t have a dedicated payroll team with the knowledge to understand the error codes shown, sorting these errors can be time-consuming and stressful, especially if you’re also managing daily care responsibilities.
4. Lack of HR & Employment-Law Backup
When you hire a carer, you’re not just paying wages — you’re effectively becoming an employer. That means employment law, pensions, holiday pay and more. Many domestic employers don’t have an HR department, and so may not keep up with legal changes or ensure full compliance. For example, missing pension auto-enrolment or failing to provide proper breaks could put you at risk of tribunal claims. Being a “home employer” doesn’t exempt you from responsibilities.
Why Outsourcing Payroll Makes Sense
Given these risks, many household-employers choose to outsource their payroll to a specialist bureau.
When you hire a carer, what you often want most is peace of mind: knowing that payroll will be handled correctly so you can focus on the care environment rather than compliance paperwork.
Here’s what a good payroll service offers:
- Reliable submission of FPS/EPS etc on time.
- Accurate calculations of tax and National Insurance contributions.
- Fewer surprises — less risk of HMRC fines or under-payments.
- More time for you to concentrate on the care role and household management.
We offer a Payroll and HR service, which not only provides an end-to-end payroll solution but also unlimited HR support. Employers who subscribe to uswill also receive a free bespoke contract created by our specialist HR advisors to suit the needs of the employer and their employee. We further offer a pension service, as well as the option for us to make the salary and HMRC payments on the employer’s behalf.
In Summary
Hiring a carer to work in your home is a big responsibility — and becoming their employer adds a layer of payroll and legal obligations. Going it alone might feel simple at first, but the deadlines, accuracy demands, and legal implications make DIY payroll a riskier path than many think.
If you want to ensure everything is handled properly and reduce stress, outsourcing payroll to a specialist service is often the wisest move. It helps you meet your obligations without losing sleep over the details.