Where do i stand?

[nepia]

i dont use him much at all 1 or 2 days a week. never a full week and never more than 3 days as i have a part time caretakers job to pay the bills.

 

 

That's good: I have it good authority that a guideline of 14 hours per week is used by HMRC; no, I have nothing in writing and it didn't come from them but if you think about it that's just under two working days so HMRC seem to be saying 'if you use someone for two 8-hour days a week we may consider them employed.' I work for someone 1 or 2 days a week and we have agreed for just this reason that I am on 7-hour days.

I couldn't find again what I was looking for but from memory HMRC's own pointers in the employed/self employed question include

 

- does the person work for others? (Thanks felix)

- does he use his own tools?

- does he submit invoices?

- can the person cease working for you at any time?

- does the person have his own transport?

 

There are 7 pointers HMRC use; the list is not exhaustive and a yes/no to any one pointer does not dictate that the individual is or is not employed; they are pointers, no more.

 

Hope this helps. Trawling the dread HMRC's website may be of benefit to you, if not for now then for the future because as your business grows (hopefully) you are more likely to need to know this subject.

 

Good luck to you.

[codlasher]

if your occasional help is on 'Job-seekers allowance' he is allowed to claim this providing he declares his earnings. There's nothing wrong with this. The problems come when he doesn't declare this. It will be his problem not yours though. Just keep records. His disadvantage will be non payment of National insurance and if he is claiming other benefits...

codlasher

[New Boy]

Hi,

 

I was recently advised to get all those whom work with me to sign a statement that they have been paid "in gross" and that therefore they are fully liable for the tax owed on the amount i pay them.

 

I have also discussed this matter in detail with my accountant whom is also a friend and who I am sure wouldn't mind me saying is "very by the book" who confirmed this as more than suitable process. Also you should obtain from them a record of their Unique Taxpayer Reference Number (UTR) if they are self employed and record days worked etc.

 

Regards

 

New Boy

[TreeswingerPerth]

Hi,

 

I was recently advised to get all those whom work with me to sign a statement that they have been paid "in gross" and that therefore they are fully liable for the tax owed on the amount i pay them.

 

I have also discussed this matter in detail with my accountant whom is also a friend and who I am sure wouldn't mind me saying is "very by the book" who confirmed this as more than suitable process. Also you should obtain from them a record of their Unique Taxpayer Reference Number (UTR) if they are self employed and record days worked etc.

 

Regards

 

New Boy

 

This is what my accountant told me too , and it's the way I work . My guy does about 20/25 hours a week for me .