Employing Someone

gazfocus

I was just wondering what I would need to do in terms of employing someone. Do I need to register as an employer, etc? The person in question will be earning below the personal tax allowance, etc, but will need to get pay slips, etc.

Savvy_Sue

All you need to know ...

Actually, that's not entirely true. That's all you need to know about tax, and registering as an employer, but you do also need to get up to speed on employment contracts etc.

carerof3

My friend receives direct payments from the council to pay a carer. When he lived with me, he paid people who earned over the tax allowance and he had to register with HMRC for PAYE. When he moved, the new council gave him less money and he now pays someone who earns well under the tax allowance. I phoned (I do his admin) HMRC, to say I would be now be sending slips saying £0 each month as no tax or NI was being deducted. They said he didn't need to register with them if no tax or NI was being deducted now, and they de-registered him. This may be because it was a carer though, some rules are different e.g. you can do a paper return, not online, if you are a disabled person employing a carer. So it may be best for you to phone their new employers line to check. The link is on the page Savvy-Sue gave you.

Hope this helps.

InsideInsurance

Also need to consider that they will need Employers Liability insurance as a legal requirement for anyone with employees.

Worth having a look on Business Link too: http://online.businesslink.gov.uk/bdotg/action/logicToolStart?itemId=1088043132&r.l1=1073858787&r.l2=1074428798&r.l3=1081476661&type=BLTTOOL

heather_helo

yes you need to register as an employer - regardless of how much the employer pays the employee and how much is deducted has to produce end of year paperwork P35's and P60's.

if you dont register as an employer the employee wont be registered as working.

if your a new business there are incentives for employing people - pending on the geographical area you trade in