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Any advice?
no-oneknowsme
Posts: 1,955 Forumite
I am asking this question for a family member who is currently without internet connection (so cant ask it themselves).
Basically they are trying to find out if it is all legal and above board to employ their own Daughter who lives at the same house as they do (incase it matters) to do a few hours cleaning around the home for them every week.
The story behind it is that the Daughter is a single mum who lives at home with her parents , both the parents work full time hours , the Daughter works only part time hours.
The Daughter does alot to help her parents around the home as she is at home more than they are. The Daughter does this without complaint but the parents have decided that they would like to make it a little more "official" and actually pay their Daughter for a few hours cleaning per week , thus allowing her to have some extra money to spend on her child - their Grandchild- without her feeling like she is receiving handouts from her parents.
As the Daughter is receiving tax credits she will of course declare the extra few pounds of income .
I am guessing that the easiest way to do this would be for the Daughter to register as self employed and simply declare the extra few pounds by way of tax return?
She would then be liable for class 2 NIC ? (she doesnt earn enough to pay class 1 in her employment)
Is there anything the parents would need to do if they were to become "Employers" or is it as simple as I have outlined above?
Neither party wants any hassle or grief from HMRC over this arrangement.
It would be around 4 hours work each week.
Any advice?
Basically they are trying to find out if it is all legal and above board to employ their own Daughter who lives at the same house as they do (incase it matters) to do a few hours cleaning around the home for them every week.
The story behind it is that the Daughter is a single mum who lives at home with her parents , both the parents work full time hours , the Daughter works only part time hours.
The Daughter does alot to help her parents around the home as she is at home more than they are. The Daughter does this without complaint but the parents have decided that they would like to make it a little more "official" and actually pay their Daughter for a few hours cleaning per week , thus allowing her to have some extra money to spend on her child - their Grandchild- without her feeling like she is receiving handouts from her parents.
As the Daughter is receiving tax credits she will of course declare the extra few pounds of income .
I am guessing that the easiest way to do this would be for the Daughter to register as self employed and simply declare the extra few pounds by way of tax return?
She would then be liable for class 2 NIC ? (she doesnt earn enough to pay class 1 in her employment)
Is there anything the parents would need to do if they were to become "Employers" or is it as simple as I have outlined above?
Neither party wants any hassle or grief from HMRC over this arrangement.
It would be around 4 hours work each week.
Any advice?
The loopy one has gone :j
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Comments
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Come on!! She should be doing that anyway if shes living with her parents. Shes having a laugh LOL0
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dealer_wins wrote: »Come on!! She should be doing that anyway if shes living with her parents. Shes having a laugh LOL
Obviously you didnt read the post?
If you did then you would see where I clearly stated that she already does LOADS round the house for her parents. The point of the matter is that she does SO MUCH that her parents are beginning to feel quite bloody guilty as they have very little to do.....
The Daughter is very independent and wont accept ANY financial help from her parents - hence the reason they had come up with the idea of paying for her help AS THEY WOULD PAY ANY PERSON TO COME IN AN DO ALL THEIR HOUSEHOLD CHORES!
You seem to have a problem with an honest days pay for an honest days work??? Maybe thats why so many people are workshy today!
Seems you cannot grasp the concept of this so instead of your useless posts in which you offer zero help just feel free to go troll elesewhere!The loopy one has gone :j0 -
how many hours is her part time work?0
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I think she works 18 or 20 hours per week in her part time job.
Im not sure why you asked this question...is there a reason?
Edited to add - did you maybe think this was a ploy to get enough hours for the Daughter to get tax credits? Or to try to boost her hours to 30 in order to get the 30hr element?
I suppose I can understand that people MAY think that but to be honest having an extra 4 hours cleaning for her parents WOULDNT get her either of the above as A) She works 18/20 hours already and
even with the extra 4 hours she is still quite a long way from the 30 hr element hrs needed. The loopy one has gone :j0 -
I think that making the arrangement formal would be more hassle than it is worth. I don't think that four hours is doing 'loads', but I guess that is down to individual standards. If they want to give her money and she won't accept it, they could set up an account for their grandchild and put it in there?
If there is no intention to gain more benefits from the arrangement, I can't see that HMRC would object. However, if she is already working 18 hours the additional income may take her over the NI threshold, so it may not be financially beneficial. Plus if she is self employed she should have insurance (though I acknowledge that few cleaners do).0 -
no-oneknowsme wrote: »I think she works 18 or 20 hours per week in her part time job.
Im not sure why you asked this question...is there a reason?
Edited to add - did you maybe think this was a ploy to get enough hours for the Daughter to get tax credits? Or to try to boost her hours to 30 in order to get the 30hr element?
I suppose I can understand that people MAY think that but to be honest having an extra 4 hours cleaning for her parents WOULDNT get her either of the above as A) She works 18/20 hours already and
even with the extra 4 hours she is still quite a long way from the 30 hr element hrs needed.
The reason I asked was if she was working only a few hours she would still be entitled to claim some income support as that has a disregard for earnings. Or the grandparents could do some babysitting to off set the chores she's doing in the house.
Blimey!!! You are an obnoxious rude individual.0 -
Why don't the parents just buy her extra food or things for the child.
Setitng up as self employed for a measly couple of hours a week is more hassle than it is worth!
How much money are we talking here?0 -
Well that's the best laugh i have had in years.
Please feel free to post some other jokes !0 -
I have to agree with lady_gaga's comment: 'Or the grandparents could do some babysitting to off set the chores she's doing in the house.'
I see it all as swings and roundabouts reguarding friends/family.
eg, I fix/decrud my parents PC's, they tinker with my car. Using each others skill sets to save time, effort and ££'s.
Reguarding being paid, as already mentioned they'd need to become self employed, and if theres any outgoings, they might have to get solicitors/accountants to do their tax returns.
Honestly, is it worth the extra agro over a couple of quid?0 -
I would never accept money off my parents for helping them round the house that I was living in, I presume rent free or dirt cheap!??????0
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