Direct Payments

Do you receive direct payments to fund your care and support?

Managing your own money and deciding how it is spent can be empowering, but it can also feel daunting. Purple Payroll helps service users throughout West Yorkshire manage their direct payments.

When you choose direct payments, you may also take on new responsibilities. Employing someone in your home means meeting legal duties as an employer.

Purple Payroll can manage these concerns for you, giving you more time to focus on what matters most to you.

We value a personal approach and can meet you in person, help you to complete the paperwork and ensure you feel confident about moving forward with your direct payment.

Direct Payments in Halifax, Bradford, Huddersfield, Leeds

Payroll registration for direct payment employers

On your behalf, we can:

Set you up as an employer.
Calculate and process employees' pay.
Provide you with timesheets and payslips
Issue your employees with Contracts of Employments setting out agreed terms.
Calculate tax and NI contributions payable to HMRC
Act as your agent for HMRC purposes.
Complete Year End processing and on-line submissions.
Handle all correspondence on behalf of you and your employees.

When being offered a direct payment option by local government, in addition to the actual cost of the service, the direct payment must include any associated costs which have to be paid.

For example, if a personal assistant is employed, you become their employer and will need to register as such with HMRC by applying for a PAYE scheme and you will have to be mindful about paying the following costs:

recruiting the carer – such as advertising costs
paying employee national insurance and tax contributions over to HMRC
paying statutory holiday pay
making statutory payments - i.e. sick and maternity pay
paying employers’ national insurance contributions or claiming the Employers Allowance when eligible.
paying the employers minimum 3% pension contributions where applicable
employers’ liability insurance
accountancy and payroll costs

In addition to our direct payment support, this service also includes:

An initial meeting with you if required - available across Halifax, Huddersfield, Bradford, Leeds and surrounding areas.
Initial set up of your payroll scheme
HMRC Registration & Correspondence
Timesheets & Payslips
4 Weekly pay runs to match your DP funding
New Starters setup and leavers P45’s
Contracts of Employment for each PA
Correspondence and payslips via email
HMRC RTI – (Real Time Information) submissions
Calculation and recording of holiday pay
Sickness Absence Recording & Monitoring

This guidance enables safer, well‑managed employment arrangements—leading to more control and reliable support.

Direct Payment Monitoring (Auditing)

If you receive a direct payment, you need to send regular reports of how the money is being spent to your local authority. This is the case whether you do your own payroll or use a payroll provider.

As a payroll provider we keep accurate up to date records which can be offered to the local authority when requested for monitoring purposes.