Buying a round to hire workers for

Discussion in 'Managing Your Business' started by Matthew Gordon, Dec 31, 2015.

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  1. Matthew Gordon

    Matthew Gordon Newcomer
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    Hi guys,

    I'm considering taking out a loan to buy an additional local round and finding two guys to work it for me.

    Any tips on doing this as I've only ever done rounds by myself and with my wife.

    The round earns £1100 weekly currently with two people working it.

    1. How much would you pay the workers?

    2. How do you go about finding good, honest and reliable workers and keep them?

    3. How do you manage collection of money and paying workers to ensure money doesn't get into their pockets that belongs to you?

    Any tips or ideas would be greatly appreciated.

    Thanks :)
     
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  2. Green Pro Clean Ltd

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    Once you've answered questions 1, 2 & 3 please let the rest of us know the answer. ;)
     
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  3. windowsurfer

    windowsurfer Forum Addict
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    You have to pay people pensions now even if you employ one person, so I 've heard from the radio, remember holiday and sick pay, sorting out contracts.

    I was thinking of renting out a part of my round to a person I know, he would pay me 20% of the income, that way you dont need employers insurance, I think, as he is not an employee. I am still trying to find out how it all works. Maybe ask an accountant.
     
  4. Green Pro Clean Ltd

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    On the pensions front you pay a total of 1% towards contributions. The advice i give over and over on this forum to all of you is go get an accountant.

    An accountant will cost a small business £150 per year to do the books and give you all sorts of valid advice on everything else.

    Ours also takes care of all the payroll, pensions and other interests we have and costs us £120 per month but that is a pittance for what he saves us in taxes and for having his advice as and when on speed dial.
     
  5. boarcity

    boarcity Guest

    #5 boarcity, Jan 1, 2016
    Last edited by a moderator: Jan 1, 2016
    theres a steep learning curve there. your going to need lads who know what theyre doing. i think if i was you id comb my mind for lads that id seen out working for someone else and go poach them.

    but if i didnt know any lads to talk to, if i knew nobody who is a grafter type employee,id hold fire cos what ur planning is much too risky dumping green newbies onto a busy round ,

    the rounds taking 1100 so you want to factor in wages of 600 . fuel /van/ insurances of 200 leaving a 300 for yourself is enough to cover unexpected. 1100 take is enough to be viable IF you get the right lads

    just my opinion
     
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  6. Matthew Gordon

    Matthew Gordon Newcomer
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    Thanks for the replies, great tips.

    I was thinking of contracting the lads, so they invoice me each week or month to avoid having to employ them with everything that goes along with it. What do you reckon?

    What's the going rate for a round nowadays? This one is about 5 times its monthly earnings.
     
  7. boarcity

    boarcity Guest

    #7 boarcity, Jan 1, 2016
    Last edited by a moderator: Jan 1, 2016
    youd be better to employ ,on the books. because finding 2 self employed lads [with the nous to sort their own insurances and do their own tax properly ] will be very hard. that type is always already out working not sitting waiting. and if they DONT do the taxes and you will know by how they talk,you will be fretting waiting for The taxman to come after you- thats no way to live. iv seen this happen to men whove ignored it

    one way it might work is to send out your wife with 2 employees to work that round while you get on with your own round with an extra employee. that way itd be supervised and she would collect the money. doing it that way youd have to bite the bullet and do payroll and tax but thats not as daunting as you think, and youd really be in control of it that way .

    iv been employing 4 or 5 yrs now and altho i didnt do it buying a round,i built up slowly,1 parttimer than 2 and so on, im really glad i did it . registering as an employer with HMRC and doing wages and sorting taxes isnt awful like many think, sure it takes a leap of faith but its just something else you learn as you go along. you get a system going .
     
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  8. Duncs

    Duncs Grand Master
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    interesting thread and topic
    i,m at stage for another van,my thinking is let my mate take van i get another guy and hayho the thing on my mind do i have to employ this guy since he is taking my van using my gear
    at the moment he is self employed, but happens when your rained off holidays what is the legal requirments
    thanks guys again
     
  9. Duncs

    Duncs Grand Master
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    hi boar do you pay your guys full holiday and sick pay
     
  10. boarcity

    boarcity Guest

    yes i do. i will be the 1st to admit in the erly days of employing i didnt do holiday pay or bank holiday pay . tho i did/do always pay a full days pay even if its rained off . i had to overburden my round with work before i was able to do the holiday pay thang. i now know that long as you overburden yourself with work [several lines in the water,taking on more work even if you think the days full ] this overcomes things like holiday pay,sickness pay or any other extra expense
     
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