Employed or self -employed ?

Tcs

I operate a seasonal business and want to employ my son for 13 weeks, its a commision based business , so i want to pay him £300 week plus a bonus at the end, how is the best way to do this, i either have to register paye or ask him to go self employed, as its for such a short time ,not sure what is the best way for both of us.

Savvy_Sue

If you have an accountant, I would ask their advice. The bottom line is that it's HMRC's decision whether someone is employed or self-employed, but with a small seasonal business and a short period of work, it may be arguable. If your employees only have small earnings, then there are fewer returns to be made, but you still have to keep very good records.

Are you a sole trader, or a ltd? That may also make a difference when the more knowledgeable people turn up ...

Tcs

This is a business which is owned by a company and i am an operator earning commision, i am self-employed , did have an accountant, unfortunatley he died unexpectily last week, hence my question to forum, i do also own small summer seasonal business which i do not require staff, so this is a new concept for me, i have to pay staff from my commision earned , so will run mostly with a couple of part time staff and my son as full time, he is employed at present as a Rep , hence he needs winter work.

John_Pierpoint

You might be able to get away with saying son is a commission only salesman and the selling he does for your business is a trading venture, a part time add on to his other PAYE sales job; but.........(you self evidently are not thinking like that!).

National Insurance acts as the trigger that lifts "casual payments" above the radar.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048

terryw

Savvy_Sue wrote: »

The bottom line is that it's HMRC's decision whether someone is employed or self-employed, but with a small seasonal business and a short period of work, it may be arguable. If your employees only have small earnings, then there are fewer returns to be made, but you still have to keep very good records.

...

So right Sue.

Here is a link to HMRC which covers this.http://www.hmrc.gov.uk/employment-status/index.htm

On the face of it, the £300 per week is a wage and it looks like employed.

PAYE will have to be set up even if just for a short time.

It could be different if he was wholly paid on commission .