Accounts, payroll and planning for care providers

We do the accounts, tax, payroll and bookkeeping for care homes, home care agencies, supported living providers and day nurseries across the UK. Owners who want to plan the year with their accountant join Business Pulse.

A resident in a wheelchair potting plants on a care home patio
£12.71 an hourThe National Living Wage from 1 April 2026, rising to £13.21 in April 2027.

Who we act for

Two older people playing cards at a dining table

Care homes

Residential and nursing homes paid by councils, self-funders and the NHS, each on a different weekly rate.

Accountants for care homes
A home care worker with a lanyard visiting a client at home

Home care agencies

Domiciliary care paid by the hour, where travel between visits counts as working time for the minimum wage.

Accountants for home care agencies
A woman in a wheelchair cooking at her own hob

Supported living

Support in people's own homes, with sleep-in shifts, waking nights and council contracts.

Accountants for supported living
Nursery children and a member of staff playing on the floor

Day nurseries

Funded hours from 9 months, council funding rates and Ofsted registration for each setting.

Accountants for day nurseries

What we do for care businesses

Business Pulse and the finance team both include the work in the first column.

01

Accounts, tax, payroll and bookkeeping

A fixed monthly fee, agreed before we start

  • Bookkeeping in Xero, kept up to date each month
  • Annual accounts and corporation tax
  • Payroll checked against the minimum wage, hours included
  • VAT, including partial exemption where it applies
Accounts, tax and bookkeeping
02

Business Pulse

From £375 + VAT a month, on top of your accounts fee

  • A budget for the year, set with you
  • Occupancy, staff hours and fees tracked each month or quarter
  • A review meeting with Peter Allen to decide what to do next
Business Pulse for care groups
03

Outsourced finance team

From £750 + VAT a month; finance director from £2,000

  • A finance manager running the books and payroll
  • A financial controller for groups with several services
  • A part-time finance director for lenders, buyers and the board
The outsourced finance team

Rates that changed in 2026

Wages and employer costs

The National Living Wage rose to £12.71 an hour on 1 April 2026 and will rise to £13.21 on 1 April 2027. Employer National Insurance is 15% on pay above £5,000 a year, and the Employment Allowance takes up to £10,500 off the bill.

New overseas recruitment of care workers closed on 22 July 2025. A care worker already in the UK can still switch to a new sponsor until 22 July 2028.

Funding

NHS-funded nursing care rose to £267.68 a week from 1 April 2026. The capital limits for council-funded care in England stay at £23,250 and £14,250.

Working parents in England have been able to claim 30 funded hours a week from the age of 9 months since September 2025. DfE's national average funding rates for 2026/27 are £12.04 an hour for under-2s, £8.90 for 2-year-olds and £6.61 for 3 and 4-year-olds.

A nursery worker playing with children at a table

Free calculators

The weekly fee per resident a care home needs to break even, what care staff cost at £12.71 with employer National Insurance and holiday pay, and the gap between a nursery's funded rates and its cost per hour.

Common questions

Do you work with care businesses outside England?

Yes. Accounts, tax, payroll and Business Pulse work the same way across the UK. Funding, registration and charging rules differ by nation: CQC and Ofsted register providers in England, and Wales, Scotland and Northern Ireland each have their own regulators. We work to the rules for the nation your service is in.

Is care VAT-exempt?

Care and childcare are exempt from VAT as welfare services when the provider is state-regulated, which in England means registered with CQC or Ofsted. VAT Act 1994 Schedule 9 Group 7 and HMRC's VAT Notice 701/2 set this out. The other side of the exemption is that an exempt provider generally cannot reclaim the VAT it pays on its own costs, so VAT on a refurbishment or a new minibus is a cost to the business.

What is the National Living Wage for care workers?

£12.71 an hour for workers aged 21 and over from 1 April 2026. The government accepted on 28 October 2026 that it will rise to £13.21 from 1 April 2027. For care employers the rate is half of the question: the hours that count matter as much. Travel between visits counts as working time, and time asleep on a sleep-in shift does not.

How much does Business Pulse cost?

From £375 + VAT a month for quarterly reviews or £499 + VAT a month for monthly reviews, on top of your accounts fee. Payroll and pensions are priced separately. The outsourced finance team starts at £750 + VAT a month and a part-time finance director at £2,000 + VAT a month.

Can you take over from our current accountant part way through the year?

Yes. You sign one letter of engagement. We write to your current accountant for professional clearance and the records, and pick the work up from the date we start.

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Book a free review

We look at your last accounts, your payroll hours and your VAT position, and tell you what we would change first.

Book a free review