How to pay very part time admin staff in accountancy practice?

How to pay very part time admin staff in...

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I feel like a dunce for asking this one but I can't remember/ find the answer...

I'm taking on admin staff for a few hours a week to help me. They will be paid under £50 a week (very part time!).

Do I need to register as an employer? The work may well be seasonal and hours will vary.
If so, do I need to complete a P11 for them? Or a P38a?
What are the criteria for having to complete a P11?

When I began working for an accountant 'back in the day' I was self employed, though I doubt 'self employed' will stick with this one really.

Anything else I've not thought of?

Thanks
Jenni
(nervous potential new employer)

Jenni Frost

Replies (6)

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By stephenkendrew
30th Aug 2007 12:47

part-time employees
You will need a PAYE scheme if:-

they earn over the LEL (currently £87 pw); or

they earn anything but have other income.

You will need to get them to complete a P46 to confirm whether they have any other income or not.

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By geoffwolf
30th Aug 2007 12:46

knowledge of PAYE regulations
You appear to have a very sketchy knowledge of PAYE.

It would appear that you regard your casual assistants as employees. Therefore step 1 is to have each one complete form P46 without which you will not know which code number to use unless you have received a P45 from them with a leaving date in the current tax year.

I would imagine that you would need to register as an employer.

You may find that form P38 will be all you need to complete but you will nevertheless require a PAYE scheme..

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By geoffwolf
30th Aug 2007 12:49

PAYE scheme
Further to my previous reply as you are clearly on the web I would suggest that HMRC's website would give you much of the information you need

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Euan's picture
By Euan MacLennan
30th Aug 2007 14:05

P46 & PAYE scheme
There is no possibility that your admin staff could be self-employed. They will be employees, however part-time, flexi-time, seasonal or casual.

As the others have said, it is essential that each employee completes a form P46. If they tick circumstance C to say that they have another job or are receiving a pension (or if they refuse to tick any box or sign the P46), you have to deduct tax at basic rate and you will need to register as an employer, prepare a P11 deductions sheet and at the end of the tax year, prepare and file P35 and P14/60.

Otherwise, if they tick circumstance A or B and provided that you never pay them more than the NIC LEL of £87 a week (or give them any taxable benefits), you will have no PAYE deductions to make, so you do not need to register as an employer, prepare a P11 or file anything (not even a P38A) at the end of the year. It seems odd that a person could have earnings of £4,500 a year without the employer needing to report them, but those are the rules.

Oh! and one final thought - do not conspire with the employee signing box A or B if you have any reason to believe that they have another job or pension, such as a woman over 60.

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By AnonymousUser
30th Aug 2007 14:29

Employees
Thank you for the responses.

My knowledge of PAYE is fine for 'normal' full time employees but for some reason (probably lack of experience) 'casual' work and the way it's treated has always been confusing for me.

Funny Euan you should mention a woman over 60 - it's likely that this will be the case. In which case I presume I will need a PAYE scheme and operate BR (assuming she ticks box C), although NI'er or NI'ee won't apply at the moment (pay below LEL).

I also presume from the responses that one can (and should) get 'employees' to complete a form P46 even if one is not a registered employer (and the result determines the need to register or not).

Thanks
Jenni

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Euan's picture
By Euan MacLennan
30th Aug 2007 15:01

Woman over 60
Jenni

Ee's NIC would not apply anyhow as you would put her on NI Table C for pensioners, but you ought to ask her for her Certificate of Age Exception.

Always get a P46 in the absence of a P45 - it serves as your authority not to deduct tax from an employee.

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