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    • dave8989
    • By dave8989 11th Oct 17, 8:23 PM
    • 38Posts
    • 1Thanks
    Employee questions, Payroll advice
    • #1
    • 11th Oct 17, 8:23 PM
    Employee questions, Payroll advice 11th Oct 17 at 8:23 PM

    I'm a sole trader who is looking to employ a family member to be my book keeper. They are above state retirement age and the annual pay would be worth £4-5,000. The family member's only other personal income is a pension of approx £200 per month and they share approx £1,200 of their personal allowance with their spouse.

    Am I correct that this means that employee pension contributions, NI contributions and PAYE are not required to be deducted when paying the family member? Also as the employer, pensions contributions would not be required from me?

    Setting up and running the payroll - I would like to do this myself if possible. Is anyone able to offer advice on this?

Page 1
    • runninglea
    • By runninglea 11th Oct 17, 8:34 PM
    • 786 Posts
    • 1,137 Thanks
    • #2
    • 11th Oct 17, 8:34 PM
    • #2
    • 11th Oct 17, 8:34 PM
    People above retirement age still have to pay tax.
    You say they only get £200 per month, do they get a state pension?

    Added to your 5K per annum what is their total income? They still get £11,000 free pay allowance. Tax at 0%
    Year 2017 (8500/£17000mortgage repayment)Overall mortgage (47,600/165568) (28
    .7%) (28/100) payments made. Total paid 2017 year £8,500

    Total paid 2017 year £8,500
    • xylophone
    • By xylophone 11th Oct 17, 11:23 PM
    • 23,096 Posts
    • 13,385 Thanks
    • #3
    • 11th Oct 17, 11:23 PM
    • #3
    • 11th Oct 17, 11:23 PM
    If the family member is over SPA then no NI will be payable on the salary.

    Auto enrolment would not apply.

    The family member has a state pension and a personal pension?

    Marriage Allowance applies?

    Taking a salary of £4000-£5000 might mean that she has some tax to pay, depending on the amount of her other income.

    HMRC should supply a tax code.
    Last edited by xylophone; 11-10-2017 at 11:26 PM.
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