Accounting for personal assistance companies

Companies providing personal assistance need a licence from IVO

A company may not provide personal assistance on a commercial basis without a licence from the Health and Social Care Inspectorate (IVO). This follows from section 23 of the Act concerning Support and Service for Persons with Certain Functional Impairments (LSS). IVO assesses knowledge, suitability and financial capacity. Among other things, IVO counts knowledge of financial regulations as part of the required knowledge, and financial capacity can mean that the company is able to bear its costs and withstand financial fluctuations. The fee for an application for a new licence is SEK 77 500. New owners, board members or partners must be reported to IVO no later than one month after the change. Read more at IVO.

For the Swedish Social Insurance Agency (Försäkringskassan) to be able to pay the allowance directly to the company, the company must also be approved for F-tax (F-skatt) and registered as an employer with the Swedish Tax Agency (Skatteverket) at each time of payment.

Assistance allowance: hourly rate and payment

A large part of the income in an assistance business comes from state funding. It is paid as an hourly rate for hours actually worked, up to the number of hours granted, and is to be used for wages, administration and other costs. The hourly rate is set by the government each year. For 2026 it is SEK 347.70. If there are special reasons, a higher hourly rate can be granted, at most 12 per cent above the standard rate, which for 2026 comes to SEK 389.42. With a higher hourly rate, costs must be reported every month, broken down into wages, unsocial hours supplements (OB), training and administration, among other things. See the Social Insurance Agency's hourly rates.

The allowance is paid out on the 5th or the 20th of each month, once the documentation for the month has been approved. Any allowance that has not been used to purchase personal assistance or to cover costs for the assistants must be repaid without being requested, no later than at the final settlement after each approval period. This rule is set out in Chapter 51, section 20 of the Social Insurance Code (socialförsäkringsbalken). If the company has provided incorrect information, it may be liable to repay and have to pay a penalty fee.

Bookkeeping for the assistance allowance: reconcile time against payroll

Every month, the provider must submit time reports for all assistants, no later than the 5th of the second month after the assistance was provided. The assistants sign their own time and the provider signs all reports. Details of a new assistant must be submitted before they start working. According to the Social Insurance Agency, common mistakes are time overlapping with another assistant's time, active time, waiting time or on-call time not being reported, and the total in the time report not matching the invoice. The Social Insurance Agency then asks for additional information and payment is delayed, which is felt immediately in cash flow when wages have to be paid.

We reconcile every month: hours in the time reports, hours in the payroll run and the allowance invoiced. Differences show up before they turn into a repayment claim, and the receivable from the Social Insurance Agency is correct in the bookkeeping.

Payroll, sick pay and OB for assistants

Wages are the largest cost. When an employee is ill, the company pays sick pay for the first 14 calendar days, at 80 per cent of the wage and with a qualifying deduction (karensavdrag), under the Sick Pay Act (lagen om sjuklön). Unsocial hours supplements (OB), on-call pay and overtime follow the collective agreement if the company has one. The Social Insurance Agency does not pay the allowance for assistance provided by anyone under 18, or for working time beyond what the collective agreement or the Act on Working Hours in Domestic Work (lagen om arbetstid i husligt arbete) allows. The schedule and the wages therefore need to stay within those limits. We handle the payroll and the employer declaration every month.

Personal assistance is exempt from VAT

Social care is exempt from VAT, and social care includes support or services for certain people with disabilities. This is set out in Chapter 10, section 14 of the VAT Act (mervärdesskattelagen). Input VAT may only be deducted on purchases used in VAT-liable activities, so the VAT on the company's purchases for the assistance becomes a cost. If the company also sells VAT-liable services, we keep the parts separate in the bookkeeping.

How we help personal assistance companies

• Ongoing bookkeeping with monthly reconciliation between time reports, payroll and the assistance allowance
• Payroll, sick pay and employer declarations
• Supporting documents for cost reporting with a higher hourly rate
• Year-end closing, annual report and tax return
• Questions about the financial side of the licence through our advisory services, and help with dealings with authorities

Fixed monthly price based on the number of vouchers and employees, no lock-in period, three months' notice. See prices.