- Payment from Haringey Council
- How much is the direct payment?
- Will I be paid cash?
- A prepaid card account
- Payroll support services
Your direct payment will be paid from the start date of your direct payment and four weeks in advance into your prepaid card account or to your managed payroll provider.
If applicable, your direct payment will be net of your client contribution. You will need to add your contribution every month to your direct payment account. This is to ensure that the full cost of your care is met.
Your initial payment will include monies paid from the date your care started - your ongoing payments will be paid in advance every four weeks.
You are expected to keep records of all expenditure relating to your direct payments, including your bank statements and invoices.
The overall payment may differ and change according to the complexity of your needs. This will be discussed and agreed with your social worker. You will then get advice about costing the care package from the council’s Brokerage and Payment Service. The standard gross hourly rate is set each year by Haringey Council.
No. To receive your direct payments, we will open a prepaid card account for you, or you will have a managed payroll. This is so that you can keep track of how the money is spent, which will assist you with your records and Inland Revenue returns. It is also important for our audit purposes.
A prepaid card account is just like a current account from your bank with a debit card. The cards have direct payments loaded on to them, as an alternative to receiving a cash payment and without the need to open a separate bank account. You can then use the card to pay for care services just like a debit card, either in person, over the internet or by telephone.
The card works in a similar way to other bank debit cards that you may already use. You will use the card to pay your Personal Assistant or agency using either telephone or online banking. The card will be produced for you by our card provider on behalf of the council and you will be able to view and manage your account online. If you don’t have access to a computer you will be able to manage your account using telephone banking.
- Haringey Council will pay your direct payments money onto the card every four weeks in advance
- You can pay for your assessed care needs by bank transfer or telephone directly into a Personal Assistant’s or Care Agency’s bank account
- You can check your account balances online or by telephone at any time
- You can pay your client contribution directly into the account by standing order
- You cannot go overdrawn or get into debt by using the prepaid card account
- You will no longer be required to make payments by cheque
- There is no charge for using the Prepaid Card, although lost and stolen cards will be charged for a replacement
- You no longer need to send bank statements to the Direct Payments Support Team on a quarterly basis, everything will be easily accessible online
- It is a secure and easy way to make payments for your care
- Same day bank transfers
- You have immediate access to funds and balance
- You can nominate a trusted person to help manage the account with you
- You can use a smart phone, tablet or computer to access your account online
- You will receive support from the Direct Payments Support Team to help you to transfer to a Prepaid Card Account
For additional information, please see the Prepaid Card Accounts factsheet (PDF, 103KB).
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If you employ staff this means that you become an employer. If you become an employer you must register with HM Revenue and Customs (HMRC). There are a number of things you must ensure you have in place when employing staff:
- Fair rates of pay - you must adhere to the minimum wage
- Written job description and person specification
- Contract of employment. Employee rights and responsibilities must be adhered to ie ensuring correct income tax and national insurance contributions are deducted and that arrangements are made for holiday pay, sickness pay (SSP), maternity pay and/or paternity pay
- Plan for managing risk
- DBS checks have been carried out
- Employers liability insurance
Most of our existing direct payments users who employ their own staff use a payroll provider of their choice to help them. They can deal with the calculation of tax, national insurance, holiday pay, sick pay and all the rest of the administration related to employing your own personal assistant.
Haringey has contact details of Payroll Support Services available that will:
- Produce four-weekly payslips for all of your employees
- Calculate and report your PAYE and National Insurance contributions
- Complete all year end returns to HM Revenue and Customs
- Regulate and report on your employer responsibilities for workplace pensions
- You can only make a payment to your employee once you receive a payslip from the payroll provider
Some payroll providers also provide support in the form of a managed payroll service. A managed payroll is when a specialist agency holds your direct payments funds on your behalf.
- Your direct payments are paid directly to the agency and they administer the money totally on your behalf, for example paying bills, or a personal assistant's wages
- However, you still retain full control over your direct payments and are responsible for the appropriate use of your funds. The cost of having a managed payroll will come out of your direct payment
The benefits of a managed payroll are:
- You do not need to worry about managing the money as the managed payroll provider makes payments as instructed by you
- It is quick to start using the direct payment as you do not have to set up the pre-paid card account
- There is no need for you to do any financial monitoring - the agency will submit this to Haringey Council on your behalf
- The agency will register as an agent on your behalf with HMRC, and deal with most aspects and paperwork relating to the employment of your personal assistant
For additional information, please see Payroll services (PDF, 123KB) guidance.