Public Liability Insurance for 16 year old labourer

Manxman_in_exile

Post #4 - assuming your nephew's going to be working 5 days per week he shouldn't be earning enough in the year to pay very much tax. 50 quid a day would be about £13,000 pa so he'd only have to pay about £400 tax in the current tax year after taking off his tax free amount.


At the moment his employer is deducting "tax" at a rate of about £2,500 pa. Do you think his employer is accounting for this "tax" deduction correctly with HMRC? If not how will your nephew claim this tax back? And what about him building up an NI record? And if he's been working for "a few weeks" he ought to be able to claim back all the "tax" deducted before 6 April. I suspect he's really only earning about £10,400 pa and shouldn't pay any tax.


I don't know about PLI but if I were his parent I'd be inclined to contact whoever arranged the original placement (as in post #9) for advice, but...he may not want to be seen to be "rocking the boat" so early in his working life.


Hope that's helpful rather than making it more complicated

comeandgo

I think his boss is looking at him as a labour only sub contractor as the £10" would be the 20% tax deduction due on £50.

dacouch

comeandgo wrote: »

I think his boss is looking at him as a labour only sub contractor as the £10" would be the 20% tax deduction due on £50.

and it's very unusual for a labour only subcontractor to carry their own Public Liability or even need it.

It makes you wonder if his boss has an Employers Liability Policy which would normally be required (By law) if you employ Labour Only Subcontractors

ceredigion

Manxman_in_exile wrote: »

Post #4 - assuming your nephew's going to be working 5 days per week he shouldn't be earning enough in the year to pay very much tax. 50 quid a day would be about £13,000 pa so he'd only have to pay about £400 tax in the current tax year after taking off his tax free amount.


At the moment his employer is deducting "tax" at a rate of about £2,500 pa. Do you think his employer is accounting for this "tax" deduction correctly with HMRC? If not how will your nephew claim this tax back? And what about him building up an NI record? And if he's been working for "a few weeks" he ought to be able to claim back all the "tax" deducted before 6 April. I suspect he's really only earning about £10,400 pa and shouldn't pay any tax.


I don't know about PLI but if I were his parent I'd be inclined to contact whoever arranged the original placement (as in post #9) for advice, but...he may not want to be seen to be "rocking the boat" so early in his working life.


Hope that's helpful rather than making it more complicated

The 20% is CIS