A Guide on how to set up as a Self-Employed PA

As a Personal Assistant, you may be employed directly by the person you’re supporting (or someone acting on their behalf), or you may choose to set up as a Self-Employed PA.

This page talks through some of the things to think about if you are considering becoming a Self-Employed PA.

What is the difference between being employed and self-employed?

There are many differences between being employed and self-employed.

It is important to understand that you cannot freely choose whether you are employed or self-employed – your legal employment status is determined by how your work is set up.

It is really important to be clear on your employment status, as this has consequences for the person contracting/ employing you. It also affects your tax status and your employment rights.

The main differences are:

If you are employed, your employer pays your tax and National Insurance on your behalf – if you are self-employed, you are responsible for paying this yourself.
If you are employed, you are entitled to statutory holiday and sick pay – if you are self-employed, you don’t get holiday or sick pay, so you need to factor this in to the fees you charge for your services.
If you are employed, your employer chooses when you will work – if you are self-employed, you choose when you will work (in conversation with the person you are supporting).
If you are employed, your employer decides your rate of pay – if you are self-employed you decide how much you will charge the person contracting your services.

There are many other differences, and it’s not always easy to determine if you are legally employed or self-employed. Find out more in this article: What’s the difference between Employed and Self-Employed PAs?

What are the advantages and drawbacks of being self-employed?

Some PAs like the freedom that being self-employed brings. It means you can more freely choose when you work, and have greater flexibility about who you work for.

Contracting self-employed PAs may be the person you are supporting’s preferred way of getting support from PAs, as it means they don’t have to deal with paying tax and national insurance payments themselves. However, this means they will have less control over when their PAs work and when they take holidays, so there are downsides for the person being supported too.

Being self-employed involves sorting out your own tax and National Insurance payments, among other things – so this involves more work and responsibility than if you are directly employed.

You also don’t get statutory holiday pay or sick pay as a Self-Employed PA, so you need to factor this in to the fees you charge for your services.

How do I set up as a Self-Employed PA?

There are a few things you’ll need to do when you set up as a Self-Employed PA:

Register with HMRC as self-employed on the HMRC website
Sort out the insurance you need. Some insurance providers provide an insurance package designed specifically for Self-Employed PAs that costs around £65-£100 a year.
Create the contracts and relevant paperwork for your role as a PA.
Think about how you want to promote yourself. You may want to get business cards printed, make contacts and networks in your local community or join local groups on social media to let people know you are available for work.
You may also choose to join the PVG membership scheme to demonstrate to prospective employers that you are not barred from working with vulnerable children or adults. Find more information about this in the Resources section below.

How much should I charge?

Unlike an employed PA, Self-Employed PAs are responsible for paying their own tax, National Insurance and pension. This means the rate you charge is likely to be higher than the rates advertised for employed PAs, whose National Insurance, pension and other payments such as sick pay are covered by their Employer.

It is up to you to decide an appropriate rate to charge. To do this, you may find it helpful to both look at the rates Employed PAs attract locally and find out from your Local Authority what the Direct Payment rate is – this can vary depending on whether the person you’re supporting lives in a rural or remote area, the job includes overnight working or requires enhanced skills or qualifications.

Then you can factor in the additional costs you will have to cover yourself, ie:

tax
National Insurance
holiday and sick pay
administrative time
equipment
insurance.

These costs are likely to add up to around 20% more than the rate an employed PA gets per hour.

It is important to ensure your rate is fair and competitive to make sure your service is accessible for the people that need support. As a guide, you can find out what the current minimum hourly rate for Employed PAs is here.

Where can I get support as a Self-Employed PA?

There are PA-specific organisations that can support you as a Self-Employed PA.

Personal Assistant Network Scotland – is the only specialist organisation in Scotland dedicated to supporting PAs. Membership is free and the PA Network Scotland offers a range of benefits and support to PAs.

ILG PA – is a membership organisation supporting Personal Assistants in the UK. For a monthly fee you can access training, 24/7 legal support, and template documents, among other benefits.