Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: dickie dickenson on January 03, 2013, 08:54:30 pm
-
Hi could anyone please help with any advice on what the procedure is to taking on a part time worker , my hubby needs a bit of help just a few days a week but we dont know where to start we want to do it all above board we have somebody in mind but he is on job seekers allowance so looked on hmrcs web page and c.a.b's but still none the wiser , you have given me good advice in the past and are really helpfull i would really appreciate a little help thankyou ;D
-
I employ a part timer. What is it you need to know?
-
your need to register with hmrc has a employer 1st thing 1st
if you have a accountant then they can set this up for you..and will talk you though it
make sure you have emplyers liabitity insurance.
-
you can pay someone up to £105.00 a week in cash,this is i believe the NI and tax threshold,you still need to account for it thru the bank,maybe a wage slip
-
Well we have only been in buisness for 10 months never worked for our selves before so everythink is new to us, we are just in the process of sorting our tax returns out ( think im going to get a accountant!!! ) so we could do with any advice you could kindly give us plz, from what the 1st thing i need to do - to the very last thing , i really am greatfull for you all taking the time to help .
-
Well we have only been in buisness for 10 months never worked for our selves before so everythink is new to us, we are just in the process of sorting our tax returns out ( think im going to get a accountant!!! ) so we could do with any advice you could kindly give us plz, from what the 1st thing i need to do - to the very last thing , i really am greatfull for you all taking the time to help .
Employers liability will have to be set up, which your public liability should be able to do. I use Gleaming insurance and for both I pay £30 a month.
My accountant then sorted the rest out for me, with regards to registering as an employer. She then also does the payroll each month and sends me the payslip.
You will need to write up a contract of employment.
Part timers are not entiltled to sick pay, but are entiltled to holiday pay. Cant remember for sure but I think its something like 8 days a year (could be wrong, might be slightly more)
-
Part timers are entitled to be treated the same as a full time employee .
Holiday is paid pro rata according to how many days they work .
They are entitled to sick pay if they earn above the lower earnings limit (currently £107 a week).
-
You dont have to pay sick pay
-
I do all my own payroll using a free site called payroo.com been using them for years and works great, works out all the PAYE and then you can pay your NI and Tax online with them direct to HMRC. Very easy to use.
-
If you need another person to help you, but only need them for say 10 days per month initially, would it not be easier to get them to set themselves up as self-employed and invoice you for the hours they work and pay them this way. Would this not be an easier way, rather than having to go through all the employment requirements for a company if you can only offer (initially) a part time number of hours.
-
If you need another person to help you, but only need them for say 10 days per month initially, would it not be easier to get them to set themselves up as self-employed and invoice you for the hours they work and pay them this way. Would this not be an easier way, rather than having to go through all the employment requirements for a company if you can only offer (initially) a part time number of hours.
No - because the self employed worker are not allowed to use the company's equipment, they would have to have their own setup.
-
If you need another person to help you, but only need them for say 10 days per month initially, would it not be easier to get them to set themselves up as self-employed and invoice you for the hours they work and pay them this way. Would this not be an easier way, rather than having to go through all the employment requirements for a company if you can only offer (initially) a part time number of hours.
No - because the self employed worker are not allowed to use the company's equipment, they would have to have their own setup.
Where did you hear that?? As it's wrong.
When I was in the building game I worked with my dad we was both self employed and i could used any equipment as i was classed as a sub-contractor.
The only thing about this there is more paperwork to do, wages wise, than there is if you employ someone.
-
If you need another person to help you, but only need them for say 10 days per month initially, would it not be easier to get them to set themselves up as self-employed and invoice you for the hours they work and pay them this way. Would this not be an easier way, rather than having to go through all the employment requirements for a company if you can only offer (initially) a part time number of hours.
No - because the self employed worker are not allowed to use the company's equipment, they would have to have their own setup.
Where did you hear that?? As it's wrong.
When I was in the building game I worked with my dad we was both self employed and i could used any equipment as i was classed as a sub-contractor.
The only thing about this there is more paperwork to do, wages wise, than there is if you employ someone.
If im wrong then, I stand corrected
-
If you need another person to help you, but only need them for say 10 days per month initially, would it not be easier to get them to set themselves up as self-employed and invoice you for the hours they work and pay them this way. Would this not be an easier way, rather than having to go through all the employment requirements for a company if you can only offer (initially) a part time number of hours.
No - because the self employed worker are not allowed to use the company's equipment, they would have to have their own setup.
Where did you hear that?? As it's wrong.
When I was in the building game I worked with my dad we was both self employed and i could used any equipment as i was classed as a sub-contractor.
The only thing about this there is more paperwork to do, wages wise, than there is if you employ someone.
If im wrong then, I stand corrected
Might of changed now tho it was about 4-5 years ago.
-
You don't have to use your own equipment, I was a self-employed welder working all over on different contracts and never used my own equipment. I also think there would be less paperwork as all you need as an invoice saying X
amount of hours labour for X amount of money, this would then be put in as a labour cost into your company expenses.
Employing someone would mean wage slips, tax, NI & employers NI, along with all the legalities etc.
As long as you get employers liability insurance you will be ok, I have Gleamimg and this covers me for using sub-contractors and paying them upto £15000 anually.
Don't get me wrong though, as soon as I have enough work to employ someone full time, then this is what I would do. But in the short term, using someone who is self employed and paying them for their labour is a good option.
-
You don't have to use your own equipment, I was a self-employed welder working all over on different contracts and never used my own equipment. I also think there would be less paperwork as all you need as an invoice saying X
amount of hours labour for X amount of money, this would then be put in as a labour cost into your company expenses.
Employing someone would mean wage slips, tax, NI & employers NI, along with all the legalities etc.
As long as you get employers liability insurance you will be ok, I have Gleamimg and this covers me for using sub-contractors and paying them upto £15000 anually.
Don't get me wrong though, as soon as I have enough work to employ someone full time, then this is what I would do. But in the short term, using someone who is self employed and paying them for their labour is a good option.
There is more paperwork as my dad hiring me as a sub-contractor he had to get separate paperwork from the tax office, he had to work out tax, deduct the tax, fill the forms out each month and send them off, them pay all the tax, if not there was a fine, even if I didn't work for him for a month he still had to fill form in and send it off.
-
I think it may be different in the building/construction industry as I think you have to have a CIS card and operate to more legislation.
Normally all that is required is an invoice from the self-employed individual thats providing labour for you and its upto them to sort out their own tax affairs/NI as they are operating as their own business.
-
I think it may be different in the building/construction industry as I think you have to have a CIS card and operate to more legislation.
Normally all that is required is an invoice from the self-employed individual thats providing labour for you and its upto them to sort out their own tax affairs/NI as they are operating as their own business.
It was my farther business, not building sites. So cis card don't count. It was fitting bathrooms, kitchens tiling flooring, decorating etc.
Single invoice from one trades man to another is different to invoice to a customer.
-
It was my farther business, not building sites. So cis card don't count. It was fitting bathrooms, kitchens tiling flooring, decorating etc.
Single invoice from one trades man to another is different to invoice to a customer.
[/quote]
Richard your giving out the wrong information here.
I am in exactly the same position as the OP, so I took advice from my accountant and out of all the options of employing, apprenticeships or sub-contracting, it was sub-contracting to a self-employed person that was most favourable. All you need from the self-employed person is an invoice for their work/hours, you pay them and they sort out their own tax affairs.
-
It was my farther business, not building sites. So cis card don't count. It was fitting bathrooms, kitchens tiling flooring, decorating etc.
Single invoice from one trades man to another is different to invoice to a customer.
Richard your giving out the wrong information here.
I am in exactly the same position as the OP, so I took advice from my accountant and out of all the options of employing, apprenticeships or sub-contracting, it was sub-contracting to a self-employed person that was most favourable. All you need from the self-employed person is an invoice for their work/hours, you pay them and they sort out their own tax affairs.
[/quote]
Not giving wrong info at all, this is how we had to do it, tax office and accountant said so, and every self-employed contractor that we got in to do work we had to do the same thing for. Even if the job invoice was only £80 or £1000's.
-
Fao Dickie
My advice is to speak to an accountant, like I did, you may find out it is not complicated at all using a self-employed person for the part time hours you need, this is what I do :)
I have worked for a number of companies all over the country as a self-employed welder (including RAF bases where I was paid by the government). At every company I worked for I handed in an invoice at the end of each week for the hours that I worked, they paid me into my account and I sorted out my own tax affairs with my accountant, simple as that :)
-
I have worked for a number of companies all over the country as a self-employed welder (including RAF bases where I was paid by the government). At every company I worked for I handed in an invoice at the end of each week for the hours that I worked, they paid me into my account and I sorted out my own tax affairs with my accountant, simple as that :)
That's because they are the customer, not the middle man.
For example, I invoice them, they pay me, then I pay the sub contractor.
You
-
The companies I worked for also had customers believe it or not, so they were the middle man. In fact the customers had customers and so on and so on, so some of the companies I worked for were in a long chain of companies before the final product was finished and delivered to the final customer, the product was usually an aeroplane.
If you sub-contract out to someone self-employed, then you are the customer of that self-employed person.
-
If you need another person to help you, but only need them for say 10 days per month initially, would it not be easier to get them to set themselves up as self-employed and invoice you for the hours they work and pay them this way. Would this not be an easier way, rather than having to go through all the employment requirements for a company if you can only offer (initially) a part time number of hours.
No - because the self employed worker are not allowed to use the company's equipment, they would have to have their own setup.
Rent it out to them, that covers that.
So far as the tax-man is concerned you are the client, the self-employed individual is the contractor.
-
If you take on a part timer, you can pay them £155 per week "on the cards" (tax year 2012-13) before they have to pay tax or NI contributions.
Thats 20 hours a week at over £7 an hour....
http://www.hmrc.gov.uk/rates/it.htm