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
Replies (11)
Please login or register to join the discussion.
And the employer holds particular paperwork supporting this position.
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...
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
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).
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!
Registering for PAYE scheme seems very quick at the moment, applied for new client last Friday and received the references today.
"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.