Paying in staff in cash - Should they go self employed

Discussion in 'Managing Your Business' started by steele, Apr 30, 2014.

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  1. steele

    steele Well-Known Member
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    I've done a bit of reading on this on other business forums but thought i'd see what the majority of you guys do.

    When you employ someone on part time basis and you pay cash do you deduct tax from their wages or recommend that they register as self employed and work as subcontractor?

    Ta
     
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  2. abs

    abs Guru
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    I'd happily pay cash to a employer and in the past just had it down as expenses , you could ask then to go self employed and give you a weekly invoice
     
  3. boarcity

    boarcity Guest

    my opinion its best to have them on the books rather than ask them to go self employed. thats because they likely wont have any idea how to go properly self employed and end up in a mess ,which will end up on your plate
    parttimers are often below the tax threshold , altho you must sort out their national insurance and register them so the tax man knows where they are .
     
  4. abs

    abs Guru
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    Most people will run when asked to go self employed, I found once a good idea was to print out a sheet once a month with what you've paid and ask them to sign 2 copies one each , I didn't have to mention self employment to a guy doing it this way
    But like boar city said. If you have a good accountant putting someone on books is very easy
     
  5. boarcity

    boarcity Guest

    iv not needed an accountant. when i first employed i registered online as an employer with HMRC and they send you a disc and then you are on their books. they also have a phone number you can call them up with any queries , iv used that several times . once you bite the bullet and employ its not as daunting as it may appear
    of course there are headaches with employing ,but you tackle each as it comes,rome wasnt built in 1 day
    but sorting out the tax side isnt a real biggie like i originally thought it might be , well it hasnt been for me . iv employed about 4 yrs now starting with 1 parttimer ,now have 3 full timers
    only the other day i listened in on a webinar ran by the tax office with details of changes for small employers ,picked up a few ideas
     
  6. steele

    steele Well-Known Member
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    Thanks guys, I've been paying him cash and keeping a record myself and will write it off as expenses I hope
     
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