employing someone!

lilywhite_2

I am a sole trader with a small business which is coming up to its 4th year of trading. I am looking to employ someone for 2 days a week on minimum wage.She has been working in the shop for 1 day a week free of charge for a work placement for college so i am aware of her attributes. The problem is that she works part time in another shop. What would the tax implications be for me as she would be working less than the tax threshold in each shop but it will equal more than the threshold if added together. Any info would be much appreciated!!!!

ukbill69

well if she is working free of charge then no tax there lol and she wouldnt get taxed for working up to £5250 per year. You might have to get some insurance for her to that could be a bit of money.

Savvy_Sue

If you phone your local HMRC office they should be able to send you a New Employer's pack, or you might even be able to order it online. I know it's a few years since I was an employer, but they were always fantastically friendly and helpful: there is a dedicated line for newbies and they really don't mind you asking the obvious!

As for her tax, she needs to work out which job will be paying her most. If it's her 'other' job, you get her to fill in a P46 (available online or in new employer's pack), and you use that to work out how much tax to deduct. For a while she'll probably pay too much tax, but if SHE contacts her local tax office they may be able to adjust her tax code with you so that she gets some tax-free pay with you. Or she can sort it out at the end of the tax year: both employers will have to give her a P46 so she can see how much she's earned with each of you and how much tax she's paid.

If it's your job that pays the most, you still get her to fill out a P46, but this time she'll sign to say this is her 'only or main' job. She'll get all her tax allowance with you. She should tell her other employer that she's got a second job, and fill out a P46 with them too, I think. But don't get too bogged down, HMRC will help you (and her) through this).

Do not be scared by payroll: for one person it really isn't too onerous, they have online calculators and as long as you are meticulous about record keeping it isn't hard. Honest.

lilywhite_2

Thanks for the reply's. Thats really helpful. Will look into it more. Thanks again.

Lorian

There are other things you need to think about when employing someone. (contract of employment etc).

See

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858787&r.s=tl

And in particular

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074615221&r.li=1078381408&r.l1=1073858787