Empoyee help!

Discussion in 'Chit Chat & Introductions' started by PfcJase, Jan 31, 2012.

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  1. PfcJase

    PfcJase Guest

    Hi!
    Looking to expand and employ a couple of family members to my firm, does anyone know the best way to pay them on the books, or self employed etc.?

    Any suggestions greatly appreciated :)

    Thankss!
     
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  2. laddergarder

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    I've always taken on people on an employed basis, you have more legal standing that way, but if I was to employee anyone on a self employed basis, I would be more comfortable with family.

    Allot of people pay a percent of takings, but this could work out to be a bit complicated in you end up with a good few employees and you may have problems with them not wanting to work on areas that make less money. If you pay them a standard wage, they wont be stressed out during times when there is allot of bad weather, or while working on lower priced jobs, and are therefore in my opinion more likely to stick it out with you.
     
  3. bluemonkey

    bluemonkey Guru
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    you cant employ him as self employed, as if you tell them when to work, where to work and provide the work and gear, then they are employed, if he has his own round then he can be self employed, have him on a hourly rate,
     
  4. bluemonkey is right legally they will be employed not self employed the inland revenue has useful information on their website that explains the difference
     
  5. laddergarder

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    yet there are still thousands of workers employed this way, you guys are absolutely correct it is against the law, its a way of cutting cost and putting the risk onto the employee. There are hundreds of taxi drivers in my town, and they are all self employed, and get a percent of there takings. In many cases the cab firm takes a cut, and the owner of the car takes a cut, and the driver gets paid what's left.

    I have also heard of some window cleaners setting there self up as a franchise, to avoid having employing people correctly. I have also heard of some business keeping all there staff part time so they don't legally have to run a payroll for them, or pay employers national insurance contributions.

    I actually recently placed an add with job center plus and they actually had the question, "Is this an employed or self employed vacancy".
     
  6. bluemonkey

    bluemonkey Guru
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    a lot of taxi drivers, can do this as basically they hire the car and work what hours and area they want, (i do a few taxi companys) you can employ someone as self employed and might get away with it for years, the problem is when the tax man says he is employed, you owe us this and all so owe him holiday pay
     
  7. Catherine

    Catherine Guest

    He could be self employed, as long as he is also working for other people.
     
  8. PfcJase

    PfcJase Guest

    Whats the best way then to keep costs down for my buisness?

    Thanks for all the help so far peeps, really appreciate it.
     
  9. bluemonkey

    bluemonkey Guru
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    dont employ unless you really have to, set a budget and stick to it, how many times ahve you seen big business say its not in the budget

    what are you business out goings at the mo, weekly
     
  10. laddergarder

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    the cheapest way isn't always the best way. A happy workforce will set the right impression when speaking to customers, and they will stick with you in the long term. Staff with good experience is invaluable, if you employee people on a self employeed basis and they end up struggling to make minimum wage etc, they will leave and go work for tescos or something. You will have a high staff turnover, and end up being unreliable for your customers because of the distruption this will cause, as you have to find new bodies and train them.

    Employ them on an employed basis, give them holidays, and met the nat min wage.
     
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