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Paul Kettless

  • Posts: 221
self employed or on the books..?
« on: September 17, 2005, 08:13:16 pm »
After looking at a couple of recent post, I am rather confused over the issue of what constitutes an employee.

Discussions with the tax office, made me believe that I could not employ any cleaner on a self employed basis, and that all staff would have to be paye.

Our business covers both domestic and commercial cleans, some supply materials, some dont.  The price of cleans vary dependant on each contract. likewise, the amount of hours varies for each member of staff.

Am I right on the assumption that all cleaners must be paid through the book, and registered with the tax office?.  If not, under what circumstances does this not count.

Thanks for you reading, and I appreciate your comments.

Regards
Paul

Complete Cleaning "you really can tell the difference"

Jan K

  • Posts: 665
Re: self employed or on the books..?
« Reply #1 on: September 17, 2005, 08:23:48 pm »
a lot of it has to do with the regularity of the cleans your employees are doing. As I mentioned before and after speaking to a Solicitor over this very same dilemma, if you employ someone to clean at a clients house on the same day, for the same amount of hours each week, fortnight, month....eg every Monday for 3 hours.....then they are your employee and the NI, tax, insurances etc etc are your responsibility....if you had a one off job and didn't have a regular cleaner to do it you could subcontract it out.......but I don't know the legalities of that as I haven't had to do that myself (yet)

anyone with facebook can add me at this link ...  jan 'minkeedj' kindon  .... if you can be bothered lol

Paul Kettless

  • Posts: 221
Re: self employed or on the books..?
« Reply #2 on: September 17, 2005, 08:36:46 pm »
Hi Jan,

Thanks for that, and I am pleased yours, is also my understanding......... the only reason why I asked it that I have been using a couple of friends over the past few weeks to help with holiday lets.  they work varying hours, different properties, and only when needed.  You can see my confusion..... ???

Paul
Complete Cleaning "you really can tell the difference"

Jan K

  • Posts: 665
Re: self employed or on the books..?
« Reply #3 on: September 18, 2005, 08:42:11 am »
Hi Paul!

Yes I can, it can become complicated, and time consuming trawling thro ways and means of their employment status. Incidentally (and I have this straight from the horses mouth). If any employee is earning less than the threshold for tax and NI contribution yo udo NOT need to register them as employees with the Inland Revenue!! I thought this rather strange and double checked with them, but it seems it is not worth their while....probably cost more in admin costs to bother about someone only working a few hour per week!!
anyone with facebook can add me at this link ...  jan 'minkeedj' kindon  .... if you can be bothered lol

Paul Kettless

  • Posts: 221
Re: self employed or on the books..?
« Reply #4 on: September 18, 2005, 08:52:15 am »
Well they say that you learn something new every day, and I was not aware of that, so thanks.........

Regards
Paul

Complete Cleaning "you really can tell the difference"

sonya

  • Posts: 55
Re: self employed or on the books..?
« Reply #5 on: September 18, 2005, 03:03:05 pm »
Hi paul, I also looked into this situation of staff and the IR told me what  JK has said. If your staff earn no more than £80( or was it £92)? a week you don't have to declear them, but They must not be in receipt of any benefits, pension or in any other paid employment. They gave me an example of a house wife who's hubby works full time she has 1-2 children and is looking for some partime work.
I don't know if this helps you? But it has helped me profile the staff that I will employ.
Sonya :-*

Fox

  • Posts: 824
Re: self employed or on the books..?
« Reply #6 on: September 19, 2005, 06:59:14 am »
Paul

My advice is phone the inland revenue yourself and they will send out information.  There are so many different things, for one don't think you don't have to register an employee if they earn under the threshold.  It could be their second job, or that they are a pensioner in which case they would be taxed on basic rate or they could be on a lower tax code from previous employment and earnings.

You will definately need a P45 or P46 from each employee before deciding how to deal with them through PAYE.

Sorry if I seem to complecate matters but it's not worth getting these things wrong, give them a call and all will be explained, you don't even need to tell them who you are they will still advise you.

Fox

Just a cleaner.

  • Posts: 47
Re: self employed or on the books..?
« Reply #7 on: September 20, 2005, 05:04:48 pm »
Our accountant says that as long as they are below the threshold currently £92 per week, and you have got a signed P46 at declaration B (this my only or main occupation).  Confirmed their National Insurance number then you are not obliged to do anyhing else except pay them.  Just file the P 46 away in case the Revenue investigate.
When all the trees have been felled, and all the rivers are poisoned, we will dicover that we can't eat money.

Jan K

  • Posts: 665
Re: self employed or on the books..?
« Reply #8 on: September 20, 2005, 05:28:25 pm »
As Just a Cleaner has said, is what the IR told me.........

I always get new employees to complete an application form on which they state whether working for me is a 2nd job or that their job with me is their only job, and most importantly that they are not claiming income support or jsa........
anyone with facebook can add me at this link ...  jan 'minkeedj' kindon  .... if you can be bothered lol

Paul Kettless

  • Posts: 221
Re: self employed or on the books..?
« Reply #9 on: September 20, 2005, 05:44:32 pm »
Thanks again for input guys, much appreciated.

I gave the IR another call today, and they pretty much confirmed the same.

Regards
Paul
Complete Cleaning "you really can tell the difference"