[Mrs Nicholls]

Hi All

We had to register as self employed when we started our partnership business, but as you are aware if you have read my other posts, my biz partner is going to be my employee at the new year. Does she have to de-register as self employed?

I have put a trial payrun through on payroll and it seems her ni conts are very high, doesnt seem right.

Thanks, Merry xmas !!!
Lisa

[Art]

Ask your accountant

[Mrs Nicholls]

i have, thanks. Im still getting used to what i can and cant ask my accountant. i dont like to bother her all the time with daft questions. 

Cheers
Lisa x

[Art]

What did she say?

[garyj]

"Leave me alone, leave me alone" 

[Art]

"Leave me alone, leave me alone" 

 

[garyj]

I think you take her on as you would any other employee. Get her to fill out a P46 and carry on from there. Her contributions will be a little higher, but don't forget you will now be paying her NI as well, presume she will be full time.

It will be down to her to sort her affairs out either through an accountant or maybe she does it herself at end of year.

If she does use your accountant make sure you don't end up paying, it's not your problem anymore, it's hers.

Best of luck being on your own, and if you ever need any advice you know where to come    

[garyj]

You also mention you are not sure what you can and can't ask your accountant! You can ask her ANYTHING, you are the customer. A good accountant is worth there weight in gold. Over the last 7 or 8 years I'm on my 5th!!!!! I think I have finally found a good one, only been with him for a few months, he was recommended by a friend who writes a financial column for a well known daily newspaper and so far he has been superb, and even cost less than the last one and does the wages run each fortnight.
Even though he is based in London using email and the telephone the distance is not a problem. He's saved me a few grand already  .

There are plenty of duff accountants out there, if you're not happy, change, it's easy.

[Ian Gourlay]

You will need to disolve partnership.

Then start again as a Sole Trader


So do the accounts for partnership ans start again.

Your partner will need to tell tax office of her change in status

You will need to tell them partnership is disolved  file accounts and of your new status as a sole trader

[garyj]

Mmm, you're right Ian, and I should have known that as I've been in the same position.

Don't forget to send a letter to all your customers letting them know as well and have a clause in the contract that ensures she won't take any exisiting work or approach anyone if she leaves for a period of 12 months.

[Mrs Nicholls]

hi guys

thanks for your replies.

Ian, we have the dissolution ready and waiting to sign.

The accountant is busy doing the accounts, so all i need to do the contact the inland rev to tell them change of status then. And as gary said inform everyone of the change. The staff already know, just need to inform suppliers and customers in the new year.

Im looking forward to starting afresh.

Lisa xx

[glenda hollis]

Lisa, 2things, what did you decide in the end to do about tips? Secondley are you looking forward to having your exbusiness partener on your payroll? I would have thought from what you said that you would want to part company once and for all. I hope it works well.

[Mrs Nicholls]

Hi Glenda

I spoke to my accountant about tips, and she said if its money then it needs to be put through payroll for the employee who received it as it has to be taxed, if its gifts as in chocs etc then its up to me if we pool it and share or if the cleaning team keep it for themselves.
They arent tax or nic's on them. Staff pretty much decided for me as they had no intention of sharing anything. Im not toally sure if they told me everything they had. At least they got a good bonus for the customers anyway. I think next year if any customer wants to tip then i'll ask them to give it to a charity of our choice instead. I couldnt believe the self self attitude of some of my staff. I think the first bit of training in the new year will be on team work 

About ex partner being on payroll, i think its going to work out much better that way, shes aware that i have to treat her the same as the other members of staff and that all the rules regs and what i expect will be the same. If she messes things up its only her fault. She sees it as a good thing anyway as she'll get more money being an employee rather than her little profit share. (that was the clincher, shes money orientated, not very caring about the business side of things).

Fingers crossed for a great 2008!! 

[glenda hollis]

Lisa, i wish you all the very best. I am pleased that you took professional advice about the tips, you did the absoulte right thing, although i would be wary of mentioning tips to clients when you refer to a charity, it really is best that you have as little knowledge of the whole situation and talking about tips before they are given can seem a bit 'forward', if you will. I hope it is a good year for you.

[Mrs Nicholls]

thanks Glenda, I'll not be mentioning tips to charity to customers, it was just a thought, but i might get everyone to share next time. if i can get them to hand over their gifts.