Avoiding need to register for PAYE as an employer

NPowerUser

If I was to employ someone say approx 10 hours per week would I need to register for PAYE as an employer.

I do not want to go the route of having to fill in an end of year PAYE return that employers have to complete, listing all their staff and have to issue P60's etc.

Surely, if I employ someone on minimum wage well below the tax and nic threshold so they do not earn enough to pay any tax and nic, I should not have to go through all the hassle of registering with HMRC?

HappyMJ

It's a very easy form to fill in. If no one earns more than the lower earnings limit of NI and therefore not get any NI contributions then it makes the form even easier to fill in.

You should already be registered with HMRC if you are self employed so the extra bit isn't much hassle.

If you are taking on help for something else could they be considered self employed themselves working the hours they wish, controlling the work and invoicing you.

comeandgo

Yes, you should register if you have employees and check to see if you need insurance for employees too. As for year end forms they are being changed to being forms submitted every time you make a payment to an employee so no year end forms to complete.

Eliza_2

Yes you do. I earn £300 from my employer who still has to register just for me. You can ring the new employer helpline and it isn't that much hassle.

Also,my employer has had to put the HMRC employers number on our employee liability insurance renewal document so there's no escape!!!

cotswoldaccountant

From the HMRC website:

"As soon as you first employ someone, you will need to register as an employer with HMRC if any of the following is true:
- you're paying them at or above the PAYE threshold
- you're paying them at or above the National Insurance Lower Earnings Limit
- the employee already has another job
- they are receiving a state, company or occupational pension
you're providing them with employee benefits"

So you are absolutely right that you would not need to register if you are paying someone below the tax and NIC threshold - unless they have another job already or have a pension.

If you don't need to register, then it is unnecessary to do so - especially with the RTI requirements for reporting that HMRC is introducing in April.

Being registered as self employed is entirely different to being registered as an employer.

Eliza_2

A yes, quite right, I forgot the bit about the employee having other sources of income, though I would think it's pretty likely most people would have.

NPowerUser

So providing the employee does not have a second job and is paid below both the tax & nic threshold, I would not need to register for PAYE.

Thanks very much for your help.

Eliza_2

NPowerUser wrote: »

So providing the employee does not have a second job .....

...or a pension or other taxable source(s) of income.

NPowerUser

Eliza wrote: »

...or a pension or other taxable source(s) of income.

Yes, thank you

The person in question only wishes to work approx 10 hours a week and is in receipt of none of the above or any benefits for that matter.

Eliza_2

Should be fine then, however if you're concerned, HMRC have been very helpful to me over this.

As a matter of interest, I'd love to know what they're living on!

NPowerUser

Eliza wrote: »

As a matter of interest, I'd love to know what they're living on!

Married woman, late forties, husband working full time, no mortgage, no kids.