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john63.

  • Posts: 191
advice needed
« on: October 03, 2011, 08:03:22 pm »
If you take someone on say part time is it best they pay there own tax and n.i.
do you just pay them a wage and include it as outgoings/expenses. what is the best way.

Smudger

  • Posts: 13459
Re: advice needed
« Reply #1 on: October 03, 2011, 08:22:31 pm »
If you don't want to pay their tax and NI then they need to be taken on as self employed - to qualify for
this the person must have other work and incomes otherwise it will be deemed you are their employer.
(hopefully this is still accurate)

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Pope vader

  • Posts: 1944
Re: advice needed
« Reply #2 on: October 03, 2011, 08:31:57 pm »
wheres what the tax man says

Employed or self-employed?

In order to answer this question it is necessary to determine whether the person works under a contract of service (employees) or under a contract for services (self-employed, independent contractor). For tax and NICs purposes, there is no statutory definition of a contract of service or of a contract for services. What the parties call their relationship, or what they consider it to be, is not conclusive. It is the reality of the relationship that matters.

In order to determine the nature of a contract, it is necessary to apply common law principles. The courts have, over the years, laid down some factors and tests that are relevant, which is included in the overview below.

 As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:
•Do they have to do the work themselves?
•Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
•Can they work a set amount of hours?
•Can someone move them from task to task?
•Are they paid by the hour, week, or month?
•Can they get overtime pay or bonus payment?

If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:
•Can they hire someone to do the work or engage helpers at their own expense?
•Do they risk their own money?
•Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
•Do they agree to do a job for a fixed price regardless of how long the job may take?
•Can they decide what work to do, how and when to do the work and where to provide the services?
•Do they regularly work for a number of different people?
•Do they have to correct unsatisfactory work in their own time and at their own expense

PurefectWindowCleaning

  • Posts: 2303
Re: advice needed
« Reply #3 on: October 03, 2011, 09:02:37 pm »
Ive just taken a lad on part time, 16 hours a week. Hes completed one month, paid him by cheque, and he didnt have any tax or n.i to pay and dont think he will have to as not earning enough.

Smudger

  • Posts: 13459
Re: advice needed
« Reply #4 on: October 03, 2011, 09:27:21 pm »
James - altho' the lad does not have to pay tax NI due to low earnings don't you as an employer
have to pay something ??

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

PurefectWindowCleaning

  • Posts: 2303
Re: advice needed
« Reply #5 on: October 03, 2011, 09:37:34 pm »
All I have had to pay for is the payslip, but even that ive found out you can do youself for free on the inland rev website.

and employers liability insurance.

Smudger

  • Posts: 13459
Re: advice needed
« Reply #6 on: October 03, 2011, 09:42:54 pm »
ahh! - thats it employers liability insurance - knoew ther was something !

cheers

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

stuart mc

  • Posts: 7775
Re: advice needed
« Reply #7 on: October 03, 2011, 10:17:49 pm »
plus if he is a part timer and has an other income he may well have to pay tax and ni

there is no way round it do it properly or use proper sub contractors

KS Cleaning

  • Posts: 4100
Re: advice needed
« Reply #8 on: October 03, 2011, 10:58:39 pm »
If you employ someone, depending how much they earn they may have to pay  PAYE and NI,the employer deducts this from their wages,the employer may also have to pay employers tax,again this depends on how much the employee earns, then the employer will receive a bill from HMRC for payment every month.

Helen

Re: advice needed
« Reply #9 on: October 04, 2011, 07:21:25 am »
Ive just taken a lad on part time, 16 hours a week. Hes completed one month, paid him by cheque, and he didnt have any tax or n.i to pay and dont think he will have to as not earning enough.

what hourly rate is he on?

PurefectWindowCleaning

  • Posts: 2303
Re: advice needed
« Reply #10 on: October 04, 2011, 06:09:42 pm »
Ive just taken a lad on part time, 16 hours a week. Hes completed one month, paid him by cheque, and he didnt have any tax or n.i to pay and dont think he will have to as not earning enough.

what hourly rate is he on?

I've started him on national mob wage which is due to rise to £6.08 in the next week or so I belive

DW Window Cleaning

  • Posts: 8
Re: advice needed
« Reply #11 on: October 04, 2011, 06:14:03 pm »
keep them self employed while ever possible every time no holiday pay  no hassle