Independent living - direct payments

Direct payments have formed part of government’s Independent Living policy for the delivery of social care for several years. Since 1996 local authorities have had the power to consider making direct payments to certain individuals they assess as in need of services.

LITRG conducted a detailed review of the tax issues which can arise when people receive direct payments and use them to employ personal assistants and published a report in January 2008.

Recommendations from that report included that direct payments users need tailored support to understand the legal obligations of being an employer, and guidance on how to ensure they meet their tax obligations.

With this is mind, LITRG has developed and launched a website dedicated to direct payments users, those who support them, and care workers. This provides more information and guidance on independent living, employment law, and operating a payroll. See www.disabilitytaxguide.org.uk.