Becoming an employer help

Lizzieb151

Hi there,
My husband is self employed and has a few casual workers that work for him - they all work under 15 per week so he hasn't needed to register as an employer yet however in the coming few weeks their hours will increase so he does need to.
Can anybody recommend a payroll system that they use - he would be employing 4/5 people.

Many thanks

Aquamania

Lizzieb151 wrote: »

Hi there,
My husband is self employed and has a few casual workers that work for him - they all work under 15 per week so he hasn't needed to register as an employer yet however in the coming few weeks their hours will increase so he does need to.
Can anybody recommend a payroll system that they use - he would be employing 4/5 people.

Many thanks

Not sure why he thinks employees that are paid less than 15 hours a week are exempt from PAYE.

Anyway, HMRC has a list of approved (free) payroll software compatible with RTI

Lizzieb151

He phoned HMRC who said he didn't need to register as an employer yet until they went over the thresholds per week but said as soon they did he had to register. They were earning below the NI threshold.
I have had a look at the approved list of paroll software but wanted some opinions on them.

DigForVictory

Ask at the library if they can steer you to somewhere where you can try these packages & pick the one that you can use most easily.
You may be looking for Princes Trust business advisors or the like, or you may prefer to consult with accountants.

Whatever you go for, you need to be able to back uit up & restore it quickly & easily - in the event of a disaster (flood springing to mind), staff are reassured to know the payroll is fine even if there's no work other than lugging soggy broken things to an agreed point.

All the best!

Pennywise

Have a look at https://www.moneysoft.co.uk. We use it in our practice for a few dozen client payrolls and I know a lot of book-keepers and accountants use it for ease of use, functionality, etc. It's also quite cheap (compared to the likes of Sage, Quickbooks, etc).

Little_Vics

We used Payroo - very easy indeed.

AbbieCadabra

we use HMRC Basic Tools for our weekly wages, only a couple of employees & us (2 directors).

i've only had a couple of issues with it in the years we've used it, & they were down to advice from HMRC (told me completely wrong info, on 3 occasions!).

Aquamania

Lizzieb151 wrote: »

He phoned HMRC who said he didn't need to register as an employer yet until they went over the thresholds per week but said as soon they did he had to register. They were earning below the NI threshold.

Yes, I think it's possibly correct but am very surprised HMRC gave this advice.
As I understand it, it's only correct in the employees are paid below the LEL and have no other form of income. The danger is, as they are effectively paid cash in hand, if it comes to light they do actually have other forms of income then your husband would be liable for the tax they should have paid (and which he should have deducted)

Who can really survive today on just £5668 or less per year?

By operating PAYE, then you are much a safer. If they really are being paid below LEL, then they get no stoppages anyway, but HMRC will know they are being paid and so will be alerted if they have tried the same story with another employer or do otherwise have other forms of taxable income.

Lizzieb151 wrote: »

...I have had a look at the approved list of paroll software but wanted some opinions on them.

A quck search pulled up these 2 threads from last year when most people were looking for something similar.

https://forums.moneysavingexpert.com/discussion/4557585

https://forums.moneysavingexpert.com/discussion/4570211

Suarez

What if the employee moved jobs halfway through the year? They would have no earnings to date figure?!

Aquamania

Suarez wrote: »

What if the employee moved jobs halfway through the year? They would have no earnings to date figure?!

The new employer should follow the same process as any other employee that is unable to provide a P45

http://www.hmrc.gov.uk/payerti/employee-starting/new-employee-nop45.htm

Suarez

Yes but where does the earnings to date figure come from if the employer doesn't have to declare the earnings?