Seems like there should be a simple answer to this but I can't find it in official guidance
We are retailers with 4 employees.
I understand that as soon as you have an employee earning over £120pw then you need a PAYE scheme, and indeed we have one.
What I can't discover is whether you need to add to the PAYE scheme, and then report RTI, temporary employees who never earn more than £120pw - i.e. a student who is a "Saturday helper"
Any advice appreciated
FB
Replies (15)
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If you check what this employee's employment status is, this will give you the answer as to whether he needs to be added to your payroll:
https://www.gov.uk/guidance/check-employment-status-for-tax
The question is not so much how much you pay them but what work they do for your company.
I really would not bother looking to try and claim that the students are all self employed
The client has now ceased trading, but I had a person running a post office trying to claim that her "employees" were all self employed shop assistants
I think HMRC would disagree
My expectation is that if the OP runs the test it will tell him this student should be employed. It was one (maybe roundabout) way of telling him the student must be added to payroll.
I still get clients telling me that casual wages can be ignored
After all at 65 what would I know?
Once you have a PAYE scheme, you need to report everyone you pay, regardless of how much they earn.
See https://www.gov.uk/running-payroll/reporting-to-hmrc, which says "Include everyone you pay, even if they get less than £120 a week."
Your students need to complete a starter form
He might have seven jobs each less than £100 per week
Casual wages are not tax free
The bit that folk miss.
Re-visiting the information on a regular basis is often missed, when there is was no initial need to run an official payroll, but the need arose as the part timer took on said 7 jobs!
For those with long memories, there used to be an exemption for low-paid students working part-time (evenings and/or holiday time only) ... although my memory has gone blank as to what it was called!
However this was withdrawn in the run-up to the introduction of RTI.
So, as per everyone else's comments on here, if you have a PAYE scheme then each and every payment of earnings must now be reported via RTI for that scheme.
There was also a student rate of NI that was a bit like the married women's rate
I was a cleaner at the time that I was in 6th form
I think it was 38 S ?Maybe wrong,my memory is not what it was with advancing age.I still remember con cards and investment income surcharge and a tax rate of 98 %.
P38S
https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye46045
"From 6 April 2013, form P38(S) is withdrawn and students will be treated in the same way as all other employees for PAYE tax and NIC’s purposes regardless of when they work for an employer. Employers already within RTI have dealt with students this way since joining RTI."
Thanks. Nice to know that my memory's still fine on the general detail, it's just the name of forms that sometimes eludes me (a bit like remembering what people looked like and did/said but not recalling their name)!
If you are paying them they need to be on the payroll and reported through RTI, even if they earn less than £120 per week. If they are temporary employees (i.e., employed through a temp agency) then they don't.