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UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: PAUL ERITH on June 18, 2013, 09:21:31 pm

Title: Paying an employee under £100 per week
Post by: PAUL ERITH on June 18, 2013, 09:21:31 pm
My wife finishes work next month and i'm looking to employ her for a few hours a week to do admin, quotes, take calls etc

Her wage will be under both the ni tax threshold so if i'm read it right on hmrc i don't have to register as an employer is this right  ??? ???

http://www.hmrc.gov.uk/payerti/getting-started/register.htm#1

Has anyone else employed an adult for under £100 per week how do i put it through the books and do i still need to issue pay slips  ??? ???

#Confused.com

Thank You Paul
Title: Re: Paying an employee under £100 per week
Post by: dave0123 on June 18, 2013, 09:24:00 pm
record it as an expense like anything else but under the heading staff wages or salaries
Title: Re: Paying an employee under £100 per week
Post by: HampshireWindowCleaning on June 18, 2013, 09:27:08 pm
Set up a standing order to pay your mrs £400 a month so the wages are on the record
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 18, 2013, 09:40:20 pm
I just can't believe that i don't have to inform the hmrc that she is being paid a wage i just seems wrong.

I think i will try calling them again in the morning to double check this is right i know if its over £109 you have to register for real time paye.

Thinking about it i might be better paying her £110 per week so her NI gets paid and is up to date for her pension



Thanks Paul
Title: Re: Paying an employee under £100 per week
Post by: stuart mc on June 18, 2013, 09:59:00 pm
it was a while ago I did it, but you still have to register yourself as an employer, pretty sure on that, the returns may be nil etc but I am sure I had to register and send nil returns
Title: Re: Paying an employee under £100 per week
Post by: R.W.C.S on June 18, 2013, 10:06:52 pm
Whether you intend her to be self-employed or employed, you'll still need to notify HMRC one way or the other.

If you intend to pay her self-employed, then she has 3 months to notify HMRC that she'll be self-employed, then she will have to file a return on Jan 31st 2015, like the rest of us.

If employed, you need to register as an employer, and notify HMRC (RTI its called i think) each time you pay her, either on the day before or the day of payment, even if it's nil tax and nil paye.
Title: Re: Paying an employee under £100 per week
Post by: dave0123 on June 18, 2013, 10:10:09 pm
Quote
If you intend to pay her self-employed, then she has 3 months to notify HMRC


Thats changed now.. you have to notify them within one week.
Title: Re: Paying an employee under £100 per week
Post by: R.W.C.S on June 18, 2013, 10:17:51 pm
So it has... although i dont see a one week deadline any more.

Just "as soon as possible".

http://forums.aat.org.uk/showthread.php?30695-New-time-limit-for-registering-as-self-employed (http://forums.aat.org.uk/showthread.php?30695-New-time-limit-for-registering-as-self-employed)

Yikes the HMRC don't half make things more difficult.....
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 19, 2013, 08:19:08 am
Just spent 15 min in a queue for hmrc put the phone down in the end >:(
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 19, 2013, 12:13:03 pm
As long as her wage is under £109 per week the hmrc don't want to know anything and you don't need to register as an employer according the the person i just spoke to from the hmrc helpline ;D ;D
Title: Re: Paying an employee under £100 per week
Post by: MATT BATEMAN (OWC) on June 19, 2013, 12:19:33 pm
I could've told you that  ;D
Title: Re: Paying an employee under £100 per week
Post by: dave0123 on June 19, 2013, 01:35:01 pm
isnt that basically saying u can earn a 100 quid a week cash in hand legally  ;D
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 19, 2013, 02:04:41 pm
isnt that basically saying u can earn a 100 quid a week cash in hand legally  ;D

Yeah i know still don't seem right i'm going to email my accountant to see what he says it might be better if i pay her above £109 at least then i can get used to paye real time before employing a none family member.

Thanks Paul
Title: Re: Paying an employee under £100 per week
Post by: stuart mc on June 19, 2013, 03:45:04 pm
isnt that basically saying u can earn a 100 quid a week cash in hand legally  ;D
as long as they are no claiming anything no, and if they are they need to declare it
Title: Re: Paying an employee under £100 per week
Post by: SunShineCleaning on June 19, 2013, 03:50:03 pm
Make her a partner and use her tax allowance.
Title: Re: Paying an employee under £100 per week
Post by: pncleaning on June 19, 2013, 04:25:55 pm
£100 a week you tight wad haha  ;D ;D.  you putting her on a YTS scheme haha
Title: Re: Paying an employee under £100 per week
Post by: 8weekly on June 19, 2013, 05:05:16 pm
As long as her wage is under £109 per week the hmrc don't want to know anything and you don't need to register as an employer according the the person i just spoke to from the hmrc helpline ;D ;D
What if she had another job? Doesn't sound right. Not that I am contradicting what you say, but it just doesn't seem right.
Title: Re: Paying an employee under £100 per week
Post by: stuart mc on June 19, 2013, 05:21:52 pm
As long as her wage is under £109 per week the hmrc don't want to know anything and you don't need to register as an employer according the the person i just spoke to from the hmrc helpline ;D ;D
What if she had another job? Doesn't sound right. Not that I am contradicting what you say, but it just doesn't seem right.

I see where you are coming from, I have no idea, does seem open to abuse when you put it like that
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 19, 2013, 05:32:10 pm
As long as her wage is under £109 per week the hmrc don't want to know anything and you don't need to register as an employer according the the person i just spoke to from the hmrc helpline ;D ;D
What if she had another job? Doesn't sound right. Not that I am contradicting what you say, but it just doesn't seem right.

If she had a second job i would be classed as an employer and would have to register

Paul
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 19, 2013, 05:34:59 pm
£100 a week you tight wad haha  ;D ;D.  you putting her on a YTS scheme haha


My wife is 3 months pregnant so in a few months she won't be doing many hours at all just doing admin and answering the phone.



Paul
Title: Re: Paying an employee under £100 per week
Post by: stuart mc on June 19, 2013, 06:04:10 pm
so are you saying they only reason you don't have to register her is because she is your wife? and if I employed a part timer not related to me I would have to register
Title: Re: Paying an employee under £100 per week
Post by: PAUL ERITH on June 19, 2013, 06:14:29 pm
No you can employ a non family member aswell have a look on hmrc http://www.hmrc.gov.uk/payerti/getting-started/register.htm#1

As soon as you first employ someone, you will need to register as an employer with HMRC if any of the following is true:

you're paying them at or above the PAYE threshold
you're paying them at or above the National Insurance Lower Earnings Limit
the employee already has another job
they are receiving a state, company or occupational pension
you're providing them with employee benefits
Title: Re: Paying an employee under £100 per week
Post by: stuart mc on June 19, 2013, 06:20:17 pm
ah that explains it the national insurance limits has went up a fair bit since I did it

still it is very open to abuse though, good to know :D
Title: Re: Paying an employee under £100 per week
Post by: andyM on June 19, 2013, 06:22:23 pm
Does sound like it's open to abuse if that is the case.
Title: Re: Paying an employee under £100 per week
Post by: MATT BATEMAN (OWC) on June 19, 2013, 06:30:39 pm
It is open to abuse. But it is permitted. Being self employed is open to abuse and that's permitted too.
Title: Re: Paying an employee under £100 per week
Post by: Smudger on June 19, 2013, 08:55:15 pm
so on that basis, would the "employee who is not an employee" be classed as self employed and then have to do their tax return - or can you pay them the under £100 a week, show it as a legitmate expense yet have no receipt?? so what I mean is I could employ say "my mum" pay her under £100 a week, mark it as a cost on my accounts, yet she doesn't have to show a receipt ?
Title: Re: Paying an employee under £100 per week
Post by: keyser soze on June 19, 2013, 09:21:55 pm
there was a form to fill in with hmrc if you pay someone without the paye/ni  red tape. you do that when filling in your tax return . i forget what the form number is .. unless its changed now