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Accountants for supported living providers

Accounts, payroll and contract costing for providers supporting people in their own homes, including sleep-in and waking night shifts.

A woman in a wheelchair in her own kitchen

A sleep-in shift from 22:00 to 07:00

AwakeAsleepAsleepAsleepWokenAsleepAsleepAsleepAwake
22:0023:0000:0001:0002:0003:0004:0005:0006:00

6 hours asleepTime asleep at or near the place of work does not count for the minimum wage (regulation 32(2) and the Mencap judgment).

1 hour wokenTime awake for the purposes of working counts, so the hour spent helping someone in the night is paid at the minimum wage or above.

2 hours awake on dutyHours the worker is required to be awake and working count in full. With the woken hour, that is 3 hours, or £38.13 at £12.71.

A young man with Down syndrome using his phone at home

What we do for supported living providers

  • Payroll for sleep-ins and waking nights, with the hours that count recorded
  • Costing of each council contract by the hours it pays for
  • Management accounts by service and by contract
  • VAT on your costs and on any service outside your CQC registration
  • Annual accounts, corporation tax and Companies House filings
  • Budgets and cash flow forecasts for a new service or contract

Sleep-ins and waking nights

The National Minimum Wage Regulations 2015, regulation 32(2), count hours when a worker is available only while they are "awake for the purposes of working", even where the worker sleeps at or near the place of work by arrangement. The Supreme Court confirmed this on 19 March 2021. A waking night is time work and every hour counts. GOV.UK's guidance adds that if suitable sleeping facilities are not provided, the minimum wage must be paid for the entire shift.

Holiday pay for relief staff

Relief and bank staff whose paid hours vary are irregular-hours workers. For leave years starting on or after 1 April 2024, their holiday accrues at 12.07% of the hours they work and can be paid as a 12.07% uplift each pay day (SI 2023/1426).

Pay rates from April 2027

The government accepted on 28 October 2026 that the National Living Wage will rise from £12.71 to £13.21 on 1 April 2027, a rise of 3.9%. The rate for 18 to 20-year-olds rises from £10.85 to £11.27. Contracts with councils that run beyond April 2027 need to carry that cost.

Common questions

Do sleep-in shifts have to be paid at the minimum wage for every hour?

No. The Supreme Court decided in Royal Mencap Society v Tomlinson-Blake [2021] UKSC 8 that time asleep on a sleep-in is not time work. Hours when the worker is awake for the purposes of working count in full. If suitable sleeping facilities are not provided, the whole shift counts.

Is supported living exempt from VAT?

Care and support supplied by a state-regulated provider is exempt as a welfare service. The exemption depends on the provider being regulated, so any part of a service that sits outside your CQC registration needs its VAT treatment checked.

Does every hour of a waking night count?

Yes. On a waking night the worker is required to be awake and working, so every hour is time work and has to be paid at the minimum wage or above.

Buzz Legal guides

Buzz Legal is the business legal service of Buzz Legal Ltd (company 17078192). Court work is handled by AD Solicitors, authorised and regulated by the SRA (no. 8011228).

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We look at your rota hours, your sleep-in pay and the rates on your council contracts.

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