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de-minimis PAYE

is there a level below which an employer doesn't need to register

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If a self-employed cleaner with no spare money (to pay a bookkeeper or accountant) wants to effectively employ an assistant cleaner to try and build up business, does he/she automatically have to register a PAYE scheme even if the payments to that assistant may be less than £250 per month? Or is there a simplified way of reporting the payments. could the income to the assistant even be deemed casual earnings if no MOO

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By Matrix
12th May 2021 16:30

No need to register if payments below LEL and no other employment.

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Replying to Matrix:
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By DJKL
12th May 2021 16:38

And the employer holds particular paperwork supporting this position.

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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By Paul Crowley
12th May 2021 16:56

Agree
Employer needs a starter checklist
Best to keep a signed copy each year

Employee may not tell employer when he starts an additional employment

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By nick farrow
12th May 2021 16:47

thank you DJKL and Matrix - I will look at this and let them know

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By Justin Bryant
12th May 2021 16:57

Lack of genuine potential substitution for low skilled workers normally makes MOO tricky for SE status (unless perhaps a genuine GP agreement is in place to make it SE).

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By Paul Crowley
12th May 2021 17:12

Casual earnings is not a meaningful term
Nor is Casual wages.

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By Hugo Fair
12th May 2021 17:13

Let's be clear ... if assistant cleaner is an employee then all the associated regulations (including PAYE) will apply.
The point made by responders (about if earnings remain below LEL throughout the tax year and if that person has no other employment during the tax year) are with regard to whether these earnings need to be reported to HMRC (under PAYE via RTI).

So, a couple of thoughts:
a) your client needs to be aware of his employer obligations (ranging from NMW rates, paid holiday, etc); and
b) your client may need to put in place a PAYE scheme quite quickly if assistant either works more hours or takes up parallel employment elsewhere ... and registering for PAYE right now is not the quickest of processes!

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By OldParkAcct
12th May 2021 18:29

Registering for PAYE scheme seems very quick at the moment, applied for new client last Friday and received the references today.

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By rmillaree
12th May 2021 21:13

"Registering for PAYE scheme seems very quick at the moment, applied for new client last Friday and received the references today."

What was method of application did you use ? and was reference received by the old skool pigeon post letter ? - don't even know if there is an alternative option although i have heard that workers on the employers helpline can occasionally be sweet talked into helping - that may just be a rumour though.

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By fiona_howells
19th May 2021 08:46

You can set them up online

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By nick farrow
12th May 2021 17:21

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim100115

i found this interesting when completing a tax return for individual with £35k of miscellaneous income - it was casual neither employment nor self-employment but taxable

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