[mamb02]

Hi guys,

I have just employed a lady to clean offices 10hrs/week. She already works 36 hours a week for tesco's. I am payong £6/ hour. How do i sort out her pay, tax, NI etc? she starts on Monday and i would ideally like to pay her weekly.

Please can some experienced people give me some help. I only started trading last month so alot of this is still a bit foreign to me.

Thanks

[BDCS]

Talk to your accountant - assuming you've got that far

[chloejayne]

Its easy,

Look on the business link website, all you need is on there ie staff contract and forms

Good luck

A

[Griffus]

Buy Sage Accounts / Payroll.

Have you researched employing people and are you happy that you will be operating within the law?

Part time employees have the same rights as full time, including the entitlement to pro-rata holiday pay. Have you included this in your price?

[Chris B]

If she has declared that she has another job and that she has filled in her p46 (that you should have supplied) then you will (or whoever does it for you) will have to sort out a payroll then work out her deductions from there.

[mamb02]

Thanks for all your replys.

Had a look on the business link website that Alex recommended which was very helpful. I am going to call up HRMC on Monday and request a Employers starter pack from HMRC which i belive should have all the documents i need, including a P46? correct me if im wrong.  They say in takes 2 working days to get here so should have it by Wednesday.

In the mean time, im not sure what to do . She starts on monday and i would like to pay her on the friday if possible. £6/hr x 10hrs=£60. Do you think i could just give her the full £60 and then HMRC could backdate tax deductions etc?? Or is there some better way to work this? She defo has to start on Monday.

[BDCS]

Why not pay her a week in arrears then that gives you a week to get things sorted out

[Fox]

Don't pay her on the Friday of the first week as BDCS says pay her one week in arrears, when you get more staff and a computer system the wages will need to be calculated on a Weds for payment into bank on a Fri and there is no way that you can know that staff are going to turn up to finish the week.  I know you have only one employee at mo so it doesn't apply but I suggest you set things up now for the future.

Do not give her £60 she will be on a BR rate as this is her second job and she will be taxed, you can not back date the tax and you will end up paying this out of your pocket, I haven't got the exact % for BR as my payroll is computerised and being Sat I am not in office!  The tax office will advise you, don't be afraid to use their help line they do not ask who you are.  As for a P46 don't worry about this at the mo, as it is her second job if she doesn't sign one she just goes onto BR anyway but you will need to fill one in and send to tax office asap, you can't do this until they have given you a PAYE reference number.

Hope this info helps
Fox

[Slash]

Hi guys,

I have just employed a lady to clean offices 10hrs/week. She already works 36 hours a week for tesco's. I am payong £6/ hour. How do i sort out her pay, tax, NI etc? she starts on Monday and i would ideally like to pay her weekly.

Please can some experienced people give me some help. I only started trading last month so alot of this is still a bit foreign to me.

Thanks

You should have looked into it first,I don't employ anyone as yet but will do my homework before taking the plunge!

[suffolkclean]

I totally agree with Slash we had 5 staff at one point and got have been put off taking people on for a while, its not to be taken lightly. You must have all procedures in place before taking on staff, looks like you've just taken a cleaner on, without thinking about quite a few things.
If she already has a job, you will have to pay her tax & NI on top of her £6, which you wouldn't have to do if she didn't have another job and only worked part-time.
Have you told her how many days holiday she will be getting, procedures for sickness, disciplinary procedures. It's not easy to get rid of her if your not happy with her work.
Good Luck!

[Pristine Clean]

if you have an accountant they will work out all of the tax including employers contributions! Yes you have to contribute to NI so where you pay here £6.00 your really paying £7.00

Your accountantant is the best one to talk too and they will if large enough do payroll for you and produce a wage slip.

Pay her in arrears and not before she has signed a P46!

I take it that you have insurance, Public liability and EMPLOYERS LIABILITY? You will need that it very important!

Dave

[Fox]

P&EL is exteremly important and like the others I think you should maybe have looked into this first.

Don't worry about this one lady and NIC's she hasn't reached the limit to pay them with you even though it is her second job.

Best advice yet is to seek an accountant if you haven't already done so and talk again with the tax office when you recieve your starter pack.

Fox

[richyvezy]

Hi guys,

I have just employed a lady to clean offices 10hrs/week. She already works 36 hours a week for tesco's. I am payong £6/ hour. How do i sort out her pay, tax, NI etc? she starts on Monday and i would ideally like to pay her weekly.

Please can some experienced people give me some help. I only started trading last month so alot of this is still a bit foreign to me.

Thanks

Hi mamb02

Use these for your payroll http://www.payroo.com/ It's free (at the moment) and so easy to use. If you have any probs they are very approachable and respond very quickly to any queries you may have.

Just curious to know why your recruiting already if you've only been trading a month ? Surely it would be more benefitial to do the contract yourself for a while ? Either way, it's your call but as others have said make sure you have Employers Liability in place.

Good luck

[Les]

The HMRC are really very helpful.

you will receive a CD for your computer and after a minimal amount of effort you will be able to do the wages for this lady yourself, (the programme will work it all out for you) .
The programme will keep ongoing records for you to give to an accountant and you can ring up for help 7 days a week and they are really undersatanding so don't panic.

Oh, and you seemed to get that lady cheap at £6 per hour, because after Tax and Nic's she won't be earning a fortune for 10 hours a week.

Let's hope she does a good job for you as it's your name that the customer will remember for good or bad.

All the best for the future

Les 

[Chris Galloway]

Join the Federation of Small Businesses, inform them and they will help you and even do it all for you so im led to believe.

[Joe H]

You will have to deduct income tax at the basic rate - 20% I think.

You will not have to deduct Nat Insurance as she is not earning enough - long way short, kicks in at about 18 hours at £6 ph (approx)

You will have to pay holiday pay - every one is due min 22 days per year but going up sometime soonish.

Re Fed of Small Businesses. - worthwhile organisation but dont know about them do it all for you as per the previous post -  I dont think so!

[mamb02]

Thanks for all your comments. In the end, the cleaner let me down at the last minute. Fortunately I found someone else which has worked out better as this is her only job (and she is very good at it). 

Defo learned a few lessons for the future though.

[BDCS]

You never stop being taught lessons especially where other people are involved.