Taking on an employee?????

susi

Hi, can anyone help here, my son opened a hair salon in august of last year. The stylists he has working for him are on a self employed basis, therefore sort out their own NI and tax.
He now feels he is in the position to employ a junior (or trainee) We have been told that the government will pay towards their wages, has anyone any experience with this. What does he have to do? and also how will he go about things like paying her NI contributions etc. Dont think tax will be applicable as being a trainee she probably wont be in the tax bracket......or will she???? Any info greatly appriciated

Savvy_Sue

Your son should phone his local HMRC office ASAP! They are very helpful about taking on new staff, there is a special pack for new employers. Any employee will be liable to pay tax once they earn more than their personal allowance, although some of these trainee schemes may be tax free.

I would have thought HMRC would have been able to tell him who to talk to about trainees. If not, try Modern Apprenticeships, the Job Centre and local colleges where hairdressing is offered.

I would also advise him to double check the status of his current stylists with HMRC. If they are working irregular hours in several different places, then they may indeed be self-employed, but if he expects them in his salon at set times then it could be a grey area. And there was a post on this board not that long ago about a chap who thought in all good faith that his delivery driver could be self-employed, but HMRC disagreed and he had a big bill for back tax and NI. It is HMRC's decision, btw, not your son's, nor his stylists.

Hope that helps.

Lorian

Much of what he'll need to know is covered here

Justin_Credit

Like Savvy Sue I think your son should check on the status of his stylists before he goes ahead and signs up another member of staff.

If the stylists are obtaining their entire income from your son and if their hours and working conditions are dictated by him then HMRC will almost certainly see that as an employer/employee relationship. If they (the stylists)have multiple sources of income then it should be ok, but none of this is can be decided by your son, only the HMRC.

HTH

Regards JC

Bossyboots

I agree with Sue and Justin that the status of the current staff is open to question and needs to be sorted out.