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Help - What do you need to do to pay someone?
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mark



Joined: 14 Jul 2005
Posts: 2191
Location: Leeds
PostPosted: Tue Jun 11, 13 11:08 am    Post subject: Reply with quote
    

First check what your "helper" will be happy with.

If you don't become their employer (handle their PAYE, NI contribs etc) then they have to be self employed and to do it themselves. Not everyone wants to do this!
As they also have no rights to maternity leave, sick pay from you most self employed people want a higher rate of pay to compensate for this.

While you save some time in employment records - you then also have to invest some time in making sure your contracts are right with your self-employed sub contractor.

One of the tests for someone being self employed is if they can turn down work.

If you require them to work when work comes in as part of their contract - it will be probably be judged they are to be treated as employed.

However if when work comes into you you offer it to them and they can say yes or no as to whether they take it, and they can negotiate hours and pay for individual jobs with you, then you are on a good wicket for having them as self employed..

One problem with having them as self employed etc is they are effectively offering the same freelance service as you are, so unless you are careful in your contracts with them and your clients they may poach your business from you or undercut your rates (which they are ready to do if you have encouraged them to set up as a self employed freelancer to work for you and they operate in the same area!).

mark
I think you need to think this through very carefully!

Nick



Joined: 02 Nov 2004
Posts: 34535
Location: Hereford
PostPosted: Tue Jun 11, 13 11:08 am    Post subject: Reply with quote
    

woodsprite wrote:
Seems to me that you need advice from a small business organisation rather than very well meaning opinions from web friends who may or may not have the correct up to date info.
I'll shut up now.


You're obviously right, but that does, sort of, defeat the point of the Internet. Yes, you can get legal, financial and medical advice from grown ups and professionals with years of training, experience and the backing of professional bodies, but, really, is it as much fun?

earthyvirgo



Joined: 24 Aug 2007
Posts: 7972
Location: creating prints in the loft, Gerlan
PostPosted: Tue Jun 11, 13 11:15 am    Post subject: Reply with quote
    

mark wrote:
First check what your "helper" will be happy with.

If you don't become their employer (handle their PAYE, NI contribs etc) then they have to be self employed and to do it themselves. Not everyone wants to do this!
As they also have no rights to maternity leave, sick pay from you most self employed people want a higher rate of pay to compensate for this.

While you save some time in employment records - you then also have to invest some time in making sure your contracts are right with your self-employed sub contractor.

One of the tests for someone being self employed is if they can turn down work.

If you require them to work when work comes in as part of their contract - it will be probably be judged they are to be treated as employed.

However if when work comes into you you offer it to them and they can say yes or no as to whether they take it, and they can negotiate hours and pay for individual jobs with you, then you are on a good wicket for having them as self employed..

One problem with having them as self employed etc is they are effectively offering the same freelance service as you are, so unless you are careful in your contracts with them and your clients they may poach your business from you or undercut your rates (which they are ready to do if you have encouraged them to set up as a self employed freelancer to work for you and they operate in the same area!).

mark
I think you need to think this through very carefully!


Some v good advice about things to watch out for.

Agree with Nick below too, real experience from people who have done it is valuable, 'Business Advice' from agencies, which you might expect to be tip-top, can often only skim the surface.

If you can find a helpful person at your local Tax office, they can be invaluable.
EV

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