Taking on a worker

[Hyzer373]

Hi guys, I am looking at taking on a worker, he is family member & very trustworthy.
I won’t be doing it until my work grows more but just wanna get my head round how it works as I’m a sole trader & would be looking at taking him on as him being self employed & on a percentage based pay for work done daily.
I know it has to meet minimum wage & that will be fine.
What I’m wondering is if I take him on & he goes self employed I’m wondering is what I’d have to do with hmrc, like I’d need to deduct his wages on each year tax return, what else would I need to do?
Also when he does his return would he put my company name down or not as he’d be self employed, would he be classed as sole trader also or just self employed?
If there’s any other tips etc from people who who know about this or have taken on a self employed worker.
I’d not want to get accountant as it costs more & if I take him on next year my round is not massive, still building.
Just want to get my head round it all to see if it’s worth it or be too much hassle.

 

[Cghwindowcleaning]

If he works solely for you gets all his work from you and has no work or business of his own then in the eyes of HMRC his not self employed.

I use self employed subbiies every one that’s worked for me has there own work,vans and tools.
They invoice me and get paid it’s up to them to sort there own tax and n.I out.

 

[Hyzer373]

If he works solely for you gets all his work from you and has no work or business of his own then in the eyes of HMRC his not self employed.

I use self employed subbiies every one that’s worked for me has there own work,vans and tools.
They invoice me and get paid it’s up to them to sort there own tax and n.I out.

That’s a bit strange because I have worked for companies in past where I have to go self employed & they take me on not as employed but self employed. The only incomings I had was that job. If I employee him I’d imagine it will be a right headache & more money. I’d rather do the self employed route.

 

[JohnDoeWindows]

That’s a bit strange because I have worked for companies in past where I have to go self employed & they take me on not as employed but self employed. The only incomings I had was that job. If I employee him I’d imagine it will be a right headache & more money. I’d rather do the self employed route.

Doesn't make it right unfortunately and if the company you worked for was to be investigated, they'd have been in trouble.

 

[Cghwindowcleaning]

It’s common in the construction industry but out side of that no.

Don’t get me wrong I know loads of people that do it with no come back but in the eyes of HMRC if he gets all his work from you,
uses all your tools and equipment wears your uniform has no other work then there’s a job for him and he should be employed properly. paye,sick pay and holiday pay,insured and pension

 

[scottish cleaning service]

It’s common in the construction industry but out side of that no.

Don’t get me wrong I know loads of people that do it with no come back but in the eyes of HMRC if he gets all his work from you,
uses all your tools and equipment wears your uniform has no other work then there’s a job for him and he should be employed properly. paye,sick pay and holiday pay,insured and pension

Test case was Pimlico Plumbers springs to mind.

 

[ched999uk]

The rules about using sub contractors are quite complex and are about to change as Liz says she wanted to get rid of IR35!! Without the advice of an accountant you could land yourself in trouble with HMRC.
It might be worth paying for an accountants advice on how to manage a sub contractor legally. The other person will probably have to sort their own tax, NI etc out as it would be their responsibility as long as you are not employing them!

Technically if you are subcontracting then I don't think minimum wage is applicable as that's an employed minimum but I doubt anyone would work self employed for less than minimum wage!

Bottom line - speak to an accountant!

 

[Part Timer]

Technically, legally, if you haven't got 3 seperate sources of income HMRC don't classify you as self employed

 

[johnny bravo]

taxi companys dont employ they pay commission only to some drivers instead of paying a wage

 

[DeLaCruz]

If he does another job self employed then its okay though ? i have afriend who does bits for me and i was wanting to get him on baord for alot of work, he alos does film work self employed so i was thinking about this situation myself

 

[Yogi1872]

That’s a bit strange because I have worked for companies in past where I have to go self employed & they take me on not as employed but self employed. The only incomings I had was that job. If I employee him I’d imagine it will be a right headache & more money. I’d rather do the self employed route.

I'm sure it was only within the last few years that the rules changed regarding this. There's rules put in place now so that people get holiday pay etc. If you still get cash paymeants then just pay him cash I'm hand. Don't let anyone on here kid you on if they try say they have never done this before. If its all Bank paymeants then that's obv not an option.