Self-employed want to employ - help and advice needed.

kate.northampton

hello,
i'm looking for advice. will try to write about my situation as short and clear as possible.
i'm self employed, run tiny business painting shoes. would like to look in to employing my mum.she has her own business in Poland and it's looking in to getting employed part time here (as rates on income tax and NI are lot lower here then over there) how much will it cost me if i wanted to employ her for 1/4 or 1/2 of full time (if you know what i mean) and how to go about it?
any advice will be appreciated. thank you so much.

CKhalvashi

You'll need to register with HMRC as am employer, and follow their new reporting rules (which I'm not familiar with, as I have an accountant that manages that side of it)

Check out these pages, and see if you can make sense of it.

CK

Mistral001

I would not rush into employing someone unless you want to become an employer on a long-term basis. Being an employer will involve quite a bit of administration with regard to PAYE and National Insurance. Not rocket engineering, but it takes time to learn the system.

Also when you are on HMRC's books as an employer and then cease to be an employer say in a few months or years time you will find that they have a habit of sending demands for payment long after you stop being an employer. Well at least that was my experience going back about four years ago.

earthstorm

Mistral001 wrote: »

Also when you are on HMRC's books as an employer and then cease to be an employer say in a few months or years time you will find that they have a habit of sending demands for payment long after you stop being an employer. Well at least that was my experience going back about four years ago.

well they would only do this if you have not paid all the due fees/NI contributions.

Mistral001

earthstorm wrote: »

well they would only do this if you have not paid all the due fees/NI contributions.

This was not my experience. Yours might have been different.

When my last employee left, I wrote to HMRC and informed them of this fact. I had fully paid all PAYE and NIC due and yet I kept getting reminders to send in my PAYE and NIC for my employees. Despite writing a few times and several phonecalls as well, it was over two years before HMRC stopped sending me reminders to send in my PAYE.