Employer confused over tax etc

sazziecee

Hello.

I am just about to start to work for my dad, he has bought a franchise for a home based business along with his ex-colleague, the business is a magazine which is free to have a copy of but is paid for by the advertising of local businesses.

The first issue isn't even out yet but so far I have done a little bit of admin on my days off to get up to speed on the magazine, and I officially leave my current job on friday, to start my new one next tuesday.

My dad and his partner aren't currently earning a wage,and I am not even sure if they are registrered as a business or not, his partners wife is also working for them doing sales part time. I am not sure if she is paid officially or whether her husband just gives her some "pocket money" so to speak but I want to do things properly, having always worked for large companies with payroll etc that worked it all out for me.

I currently claim tax credits so need to phone them and tell them my change of circumstances, my wage and hours are exactly the same for both jobs so my award shouldn't change but i have asked my dad for a PAYE number and an employee number so I can give it to the tax credits when I tell them about the new job. (will they continue to pay me if I just tell them the name of the magazine and the address I work from? I am worried they won'thence this thread). He doesn't have a clue what I mean!!

Dad thinks that as I am only working 16 hours at £5.90 per week, so £94.40 that he doesn't need to register me as an employee with HMRC, I have just looked and the earnings threshold was £100 so I thought this may be true, however it also said that if I am over the NI threshold of £90 then I need to be registered as an employee. So now I am a bit confused and have sent him a link to the HMRC website and told him to phone the helpline tomorrow if he is still confused.

Can anyone set my mind at rest. I don't want to have quit my job only to miss out on tax credits because of it as I rely on that money now.

Thanks

Pennywise

You are right - he needs to phone the helpline and register as an employer - HMRC will send him the reference numbers you need - he will have to send annual returns of pay paid to you to HMRC regardless of whether or not tax and/or NIC has been deducted. This is also important to evidence the wages you have been paid in case you need to claim state benefits in the future, otherwise your employment record held by HMRC will show empty/gap years.

CarolynH

He need to register - he can either phone them or go online at https://www.hmrc.gov.uk

LittleVoice

sazziecee wrote: »

Hello.

. . . i have asked my dad for a PAYE number and an employee number so I can give it to the tax credits when I tell them about the new job. (will they continue to pay me if I just tell them the name of the magazine and the address I work from? I am worried they won'thence this thread). He doesn't have a clue what I mean!!
. . .

The others are, of course, right about the need for him or his partnership to register with HMRC as an employer.

I don't think you need to have an employee number - you can be a name not just a number! (Or you could have the important employee number of 1.)

sazziecee

Hi thanks for the help.

He is apparently already registered as an employer but due to it being close to the end of the tax year, his stuff is delayed and he hasn't had his documentation??

He said that I can be employee 002 once this is all sorted but then later on he has sent me an email saying that he has been thinking about it and maybe I want to declare myself as self employed and just invoice them.

I really don't want to do this because of the lack of protection you get as a self employed person, my boyfriend is self employed and when he was sick last week he obviously didn't get paid and I can't afford the same to happen to me, plus if me and my boyfriend ever want to buy a house together, the fact that we are both self employed will be a bit of a pain in the bum won't it?

Thanks

G-G_4

If your dad is giving his partner 'pocket money' for the work she does, then maybe he thought it would be the same for you and he wouldn't have to 'employ' you as such.

Sounds a bit dodgy to me..

Is he definately registered as an employer and self emplyed, or was he just saying that?

Sorry to sound rude because I know he is your dad x

chappers

Also he won't be able to declare that "pocket money" as an allowable business expense and so will end up being taxed on it as if he earned it himself.
I would be very worried about going to work for someone who has so small a grasp on the basics of running his own company , Dad or not.
This needs to all be done correctly and above board otherwise your WTC could all become a nightmare.
Ring them up they will tell you exactly what they need from you.
Then make sure the payroll is kept upto date.