Employing people advice.

[Diwrnach]

So I might bite the bullet and hire someone part time soon, could anyone tell me how you go about paying their Tax and national insurance etc?

I assume you register as employing someone with the tax office and who they are then is it a yearly tax/NI bill? monthly? do you just send the payment to the tax man or?

Any benefits of employing someone? what about negatives?

Any and all advice welcome I have someone in mind and have work lined up but want to check all the angles first.

I know @boarcity and @Green have a lot of experience with this, any help guys?

 

[boarcity]

if theyre under 21 they dont pay NI [new rule came in force in April] and if theyre parttimer they can well be under the tax limit . before this new rule i paid the NI every 6 months

you first need to register as an employer with hmrc and they then send you a disc for your computer and then you list the employee into the system.

the benefits far outweigh the negs, its not as if the employee is goin to be sittin about-youll be makin sure theres work coming in for him/her with sustained marketing effort

 

[Green Pro Clean Ltd]

Find one very large stone wall..................ram head into it at speed many times over for 8 hours.

Now you know what it feels like to have employees for a day.

Don't forget now even if you have only one employee you have to have a pension scheme for them (law)

My only warning for you in the villages is what happens when the employee decides to go out alone? not like it is here for us city boys with tonnage of work available.

I already said to Boars in a PM if I went the employee route again I would give them a verbal warning day 1 (have them sign a sheet to say they have had a verbal) written warning day two and then they know that just f*&k about once and you can give them the boot!

 

[Green Pro Clean Ltd]

In short what I am saying is dont take on anyone you cant get shot of rapidly if need be, you say you have someone in mind well also do not hire mates, how do they then look at you when you and the wife are off to a BBQ on friday afternoon and they are stuck up to their elbows in gutter cleaning?

Not just the paperwork side of it to consider these days.

 

[Simply Business]

Another thing to consider @Diwrnach is that you'll have to amend your insurance to include employers' liability. Legal requirement if you have an employee.

On the issue, not too sure how common it is for apprenticeships in window cleaning? But if you were able to find a youngster keen to learn, you wouldn't have to pay as much and they'd likely be very keen to impress!

 

[Eviestevie]

Hiring staff can be a pain I used to have four lads now only one

Got to much in the end days off hungover because carnt be arsed and like green I'm not type to f**k around so ended up sacking um

They also think if your not at work they don't have to be causes a lot of pressure

If I ever go down that route again I'd Employ someone older who would work alone on set rounds and pay a good hourly rate

Not sure if I'd bother tho!

 

[boarcity]

you MUST find out before they start if they have medical issues . no point asking them directly cos most will lie just to get the job. how i do it is at interview i pretend im feeling ill and ask do they happen to know the doctors opening times-if they do you know it means theyre "on the books" at the docs and are to be avoided .

iv first hand knowledge of employing duffs with irritable bowel ,Asthma, liars, fist happy ,gas bags, deaf,daft , dopehead and im sure theres more iv forgotten! you live and learn and as long as you tell them its 3 months trial period,a waster will reveal him/herself well within that time ,usually in the first week.

if its just an attitude problem [ hates police, foul language,stutter, chip on shoulder ] thats ok in a new employee , cos you can usually iron it out within no time once you get their trust and respect

 

[Diwrnach]

I have a job lined up at a child's nursery, they want two people for two hours 5 days a week in the evening when they close, I have one lady lined up and think it would be fairly easy to find another.

Charge £12 an hour each, pay £8 an hour each, pocket the rest is my thinking, then slowly give them more work if they want it, seems to be loads of work around for it, the local paper shop always has at least 2 people asking for cleaners to clean there houses.

Just wondering if its worth the bother or not, I figure I can make maybe £150 a week of each full time cleaner for just arranging the work.

 

[MrBump]

Is it not possible to tell someone to register as self employed and then hire them in as a sub-contractor, they will then have to sort out their own tax/ni/pension etc?

 

[Diwrnach]

Is it not possible to tell someone to register as self employed and then hire them in as a sub-contractor, they will then have to sort out their own tax/ni/pension etc?

This might be the way forward, seems a lot easier if at all possible.

 

[MrBump]

Haha boarcity thats quite a list of employees you've gone through, t least I hope that wasn't a description of one person! :rofl: Doesn't matter if you stutter and clean windows though does it? Or the other hand leave the gas bag at home... Wait by gas bag did you mean guff-master or chatter-box? /emoticons/biggrin.png

 

[MrBump]

I'm sure its possible, alot of my friends use to work for big companies as self employed so the companies can make tax savings I think. They would be on 3/6/12 month rolling contracts. But no need for foxed contract. There may well be some small print now if you are the sole employer your still liable for their breakfast on tuesdays or some clause /emoticons/biggrin.png You'd have to read up on it. Think maybe you have to pay them holiday pay maybe? So add on a few % to daily rate or something..someone will know if its anything

 

[Diwrnach]

All depends if it ever gets reported, if so you can end up in trouble from what I can gather, if you provide working hours, equipment etc etc then tax office would see them as an employee regardless.

Its not as clear cut as it seems.....

 

[Simply Business]

It is possible @MrBump @Diwrnach but be careful how you do it. HMRC are very strict on this whole self-employed/employed issue. If you're using labour-only subbies (i.e. working under your company name, under your instruction, using your tools etc) then they need to be covered by employers' liability by law.

If you use bona-fide subbies (this is where you pay an existing company and they work under their own instruction, with their own tools, send any given employee on the day work and under their own company name) then you won't need EL.

It's sometimes tricky to establish which one you're using. So a good question that can answer it is: If they didn't turn up for the day, whose job would it be to send a replacement? If the answer is your responsibility then they're likely labour-only and you need EL. If the answer is that it's their responsibility then it's likely bonafide.

Hope that helps? P.s. be careful, the fines are huge for getting it wrong - up to £2.5k per day, per 'employee'!

 

[Diwrnach]

Yeah from my very brief google fu it seems I would have to take them on as an employee, so not only do I need insurance, pay their tax and NI but I also need to sort their pension out??? plus almost impossible to get rid of them if they're ****?

Blimey.....

 

[Diwrnach]

And the government wonders why there are so few jobs around lmao.

 

[MrBump]

Sounds like simplybusiness said that you can subbie labour-only work you just need employers liability insurance. So you could get that and tell them their self-employed and let then worry anf tax and all that jazz. You'd need insurance if hiring anyway I'm guessing so nothing lost

 

[Diwrnach]

Sounds like simplybusiness said that you can subbie labour-only work you just need employers liability insurance. So you could get that and tell them their self-employed and let then worry anf tax and all that jazz. You'd need insurance if hiring anyway I'm guessing so nothing lost

It boils down to this when you look into it....

If they don't turn up to do the job who is responsible? if its you then you are the employer, if its their problem to sort it out they are self employed/subbie.

 

[boarcity]

very few ordinary folk [the type you are going to have working for you] are capable of sorting out their own tax , NI .

dont bury your head in the sand thinking theyll muddle thru somehow while you do nothing

i knew a guy took on his own son self employed and altho the tax and NI REALLY WAS small money, over 4 yrs it built up to BIG MONEY cos son did nowt re-tax etc and then sh/t hit the fan

 

[MrBump]

Oh. Simplybusiness just said if your responsible then they are a subbie and you need EL liability, if not you don't. Unless I read it wrong.

 

[Simply Business]

Sorry for any confusion @MrBump, I was just trying to highlight the difference between labour-only subbies (that you need EL for) and bonafide subbies (that you don't need it for) /emoticons/smile.png