Need extra help

Lizzieb151

My husband is a sole trader but business has really picked and we need extra help.
We have found someone to work for us on a self employed basis as we can only offer casual work at the moment with a view to increasing hours.
They would invoice us on a weekly basis for hours worked and will we pay them on a weekly basis.
They would be responsible for paying their own tax and NI but is there a contract or something that I get them to sign agreeing to paying their own NI and Tax and agreeing hours etc?
I would like something in writing just for peace of mind.

Thanks

Icequeen99

You can't just choose to do take this person on as self-employed - it depends on the facts and relationship between you as to whether they are self-employed or need to be employed by your husband.

HMRC have a tool here that can help you. http://www.hmrc.gov.uk/calcs/esi-01.htm (click the link at the bottom to get started)

What would be the purpose of the written agreement? I don't quite understand why you want it?

IQ

Lizzieb151

I thought I would need a written agreement to cover ourselves if for whatever reason the person in question didn't pay their tax or NI.

I don't understand why we couldn't have self employed people as we can't offer fixed days or hours currently - it would just be someone on an ad hoc basis if they were available.

Icequeen99

Lizzieb151 wrote: »

I thought I would need a written agreement to cover ourselves if for whatever reason the person in question didn't pay their tax or NI.

I don't understand why we couldn't have self employed people as we can't offer fixed days or hours currently - it would just be someone on an ad hoc basis if they were available.

If a person is genuinely self-employed, and by that I mean that the relationship between you and the facts suggest it is self-employment then there is no way you can be held responsible if they do not pay their tax and national insurance.

The only way you can be held responsible is if you pay them as self-employed when in fact they should be an employee. But in that case, the written agreement won't be any help.

Not being able to guarantee hours doesn't automatically make them self-employed.

Have a read through this page here: http://www.hmrc.gov.uk/employment-status/

And use the status indicator I linked to before. Then print off a copy of the results page and the enquiry details page and keep it safe. If the indicator says they should be self-employed and the info you entered is accurate you will be covered by doing that.

IQ

Lizzieb151

Thanks I did the status checker and it states they should be an employee. As I said they would be on a casual basis with this being their only job and their earnings in the first year would be below the PAYE and NI theshold (10-15 hours per week) would we still need to be employers as no tax or ni would need to be paid through the rti system?

da_rule

It would appear that you are under the threshold, but if they worked a few extra hours you would have to register. You might as well register in reality as it makes things easier in the long wrong should you employ someone else, or should you need more help than you realise etc.

Also, as a side note, as he will be an employee you need to make yourself aware of your responsibilities under the Employment Rights Act, Health and Safety at Work Regulations, Working Time Directives and the various pieces of equality legislation.