Employing self employed staff
Duffer started this topic @ 03:36 on 13/01/2010
Hi all,
I'm in the process of planning a business start-up based in Scotland. I know I'm going to need to employ staff but, certainly in the short term, the hours I need them will be quite erratic, probably only the odd day here and there.
I've been thinking of taking on staff on a self-employed basis so they are responsible for paying their own tax etc and I'm not tied into them working any set hours. This would only be for the first two or three months hopefully until I have generated enough business to be able to offer them regular hours and also afford to pay the tax and NI required.
My question is, can I do this? Do I need to have a contract between myself and the worker stating they are responsible for their own tax etc? How would I show my payments to them in my accounts?
I don't want to break the law and certainly don't want to fall foul of the Inland Revenue but I won't be able to afford the staff costs if I have to pay their tax from day one as I'm starting up with a VERY limited budget, only a few hundred quid.
Any help would be very gratefully recieved.
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RE: Employing self employed staff
Clear Books | 14/01/2010 04:09 PM
Hi Duffer,
Please see this post hopefully it should help you out.
http://www.smallbusiness.co.uk/channels/legal-advice/q-and-a/27918/hiring-selfemployed-staff.thtml
Nick
RE: Employing self employed staff
virtuallysorted | 18/01/2010 12:44 PM
Hi Duffer
HMRC have very clear rules about this - the definition of "self-employed" relies heavily on what the people are doing for you, how they do it and where they do it. http://www.hmrc.gov.uk/employment-status/index.htm#1
If you are looking for admin tasks, we can help. Just drop me a line and let me know what you are looking for.
If it's on site staff, it gets a bit trickier.
Caroline
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Caroline Wylie
www.virtuallysorted.com
www.SocietyOfVirtualAssistants.co.uk
RE: Employing self employed staff
dmoore0021 | 22/01/2010 09:35 AM
Hi Duffer,
I would definitely recommend having a contract with any self employed staff - even a standard sub contractor agreement downloaded from the internet would be better than nothing as it would set out the main terms and conditions and would keep costs to a minimum.
It may be worth getting some free advice from a contract solicitor to see what they would recommend for your specific circumstances.
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5 Minute Angels provide tailor-made on site massage services for offices and events across the U.K.
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RE: Employing self employed staff
drizzle | 24/01/2010 12:18 AM
I don't understand why don't you just outsource?
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Make Money Ebooks
RE: Employing self employed staff
Paul Smalley | 25/01/2010 10:20 PM
Caroline and Drizzle have hit the nail on the head here - outsourcing is probably the best way forwards. You would be amazed at the level of support available that you can tap into through outsourcing and they should have contracts for you to sign as they do the work.
As a note of caution on the outsourcing route (and I run an outsourcing company!), make sure you provide clear objectives on what you want doing, set up checks to ensure the work is being done to your standards and progress reports are submitted to you at specific times. Outsourcing companies are accountable for the work they are doing, if they struggle to provide you with that assurance, are they right for you?
Now employing contractors/self employed people as opposed to taking on staff carries a further risk you should be aware of something called 'employment by osmosis' - click the link for more information http://bit.ly/6lMnwc.
What ever the decision, good luck
Kind regards
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Paul
Paul Smalley
Paper Mountain Solutions Limited
Scaling new heights for your business through effective outsourcing
www.papermountainsolutions.co.uk