Whether you're already working in the sector or are considering a new freelance career, being a self-employed carer is a great option if you'd like to be your own boss. There are quite a few things to consider before starting out, though.
Duke Atori, the founder of the online caring platform CareDial, remembers: “I found it exciting to be self-employed, but I had to do a lot of research at first.” To help you make this process pain-free, we’ll guide you through the most important points you need to know in this article.
How to gain qualifications as a self-employed carer
It's fairly easy to become a carer, even without having many qualifications. However, there are some certificates you need. We’ll cover these and some training options in more detail below.
Enhanced Disclosure and Barring Service (DBS) Certificate
To prove that you don’t have a criminal record or are barred from working with vulnerable people, you’ll need to apply for an enhanced DBS certificate. As a private carer, you can apply for this with the help of the National Association of Care and Support Workers (NACAS).
Get an up-to-date Care Certificate
A Care Certificate proves that you possess the necessary knowledge to undertake basic care work. This includes 15 minimum standards you must meet, e.g. from duty of care to infection prevention and control.
Other certificates
There are also additional certificates you require before starting out as a carer and registering on caring platforms, such as CareDial. These qualifications include manual handling, food safety, first aid, and much more.
In-person training vs online training options
For practical hands-on training, such as manhandling and first aid, an in-person course may be preferable. However, virtual training can be very useful most times, especially if you don’t own a car or if you don’t live close to a training centre. The NHS e-learning platform offers lots of relevant free courses (including for independent carers), while Skills for Care provides many inexpensive learning options—all online.
You may also want to show advanced competence in certain areas once you’ve had some work experience, e.g. by completing a Level 3 Diploma in Adult Care. To qualify for this course, you mustn’t have a criminal record, be at least 16 years old, and already have to work in health and social care.
How do you set up as a self-employed carer?
Register as an independent personal assistant (PA) carer
Starting off your career as an independent carer is easy. Simply register as an independent personal assistant (PA) with care platforms like CareDial. This way, you can build your skills and gain experience before branching out on your own if you wish to do so.
Please note: "normal" care providers (including care homes and agencies) need to register with the Care Quality Commission (CQC). However, according to guidance by Skills for Care, independent personal assistants (PAs) "who are directly employed by an individual, or related third party, and self-employed PAs with an agreement to work directly for an individual do not need to be CQC registered." Please read their guidance in full to make sure your caring activities don't need to be registered with the CQC.
Register with the HMRC
As an independent carer, you’ll either need to register as a sole trader or as a limited company. Check carefully what's best in your circumstances.
Often, carers start off as self-employed sole traders. You'll receive a UTR number, which you'll need to use when completing your annual tax returns.
How do self-employed carers pay taxes?
As a self-employed (or private) carer, you’ll need to keep a detailed record of all financial transactions throughout the tax year. Each tax year runs from 6th April to 5th April of the following year.
After each tax year, you’ll then need to submit a self-assessment of your income and expenditure. Expenses may include e.g. travel costs, work clothes and equipment, training costs, legal and financial costs, and more.
Do you need an accountant?
We recommend getting an accountant if you can afford one, especially if you’re not used to running a business and balancing your books. Accountants don’t have to be expensive, and they can even help you save money in the long run. After all, they’ll help you identify expenses you can claim for!
They may also suggest affordable accounting software to use in your self-assessment tax return (or company tax return if you’re trading as a limited company).
Why it’s better to open a business bank account
It’s best to get a business bank account if you’re a sole trader, and essential if you’re a limited company.
Owning a separate bank account for your caring business means it’s easier to see how much is coming in and out of your account, and to calculate how much money you’ll need to set aside for your tax payments.
Which insurance do you need as a self-employed carer?
Good insurance cover is crucial. Some insurance companies even offer special package deals for self-employed carers. Before you choose, however, compare these to see what’s included, and what’s best for you. Here are the most important types of insurance you’ll need:
a) Public liability insurance/ self-employed carer insurance
Public liability insurance should cover you in case of any mistakes or accidents that cause the person you care for harm. It should also include accidental damage to or loss of property (e.g. keys, equipment). Make sure you’re insured! Failure to do so could result in very hefty fines (or worse). At CareDial, having public liability insurance for personal care work is a must.
b) Personal injury cover
This covers you in case a caring task has harmed you; for example, through heavy lifting or an accident while helping your client. You could also add cover for disablement or even life insurance in case of accidental death.
c) Business car insurance (if applicable)
Before using your car for business purposes, you must inform your insurance company of this, so they can adapt your policy. If you don’t, they may not pay out if you have an accident. Please consult your car insurer for details.
Money: how to set fair hourly rates as a self-employed carer
When you’re self-employed, you need to consider all costs you need to cover before setting your own rates. For example, you’ll need to pay for your living costs, travel expenses, equipment, holidays, sick leave, and a pension plan.
And: don’t forget to put money away for rainy days. To help you with this, you can use free online calculators.
How to draw up contracts
Do self-employed carers always need a contract? In short, yes. A legally-binding agreement between you and your client is essential. You’ll need to be very clear about the care services you provide, your hours, any additional fees (e.g. in case of cancellations), and so on. CareDial provides registered users with a free service contract agreement you can use. This covers e.g. holidays, sick leave, rates and fees.
Also, think about risk assessments and any complaints procedures you need to put in place.
Find the right clients as an independent carer
Now you’ve finished the admin side of things, it’s time to find your clients. To do this, you’ll need to learn how to market yourself. Luckily, online platforms like CareDial make this easy for you.
Once you know what type of client you are looking for, simply register and get matched with care receivers in your area. You’ll be able to meet before you work with them, so you’re both sure you’re a good fit!
Become a self-employed carer with CareDial
We hope our article has helped you get started on your journey towards becoming an independent carer. Do you still have questions about owning your own caring business? We’ll be happy to help. Drop us a line.