How to setup a payroll for Furnished Holiday Lets

How do joint owners of furnished holiday accommodation setup a payroll?

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We have husband and wife clients who jontly own some furnished holiday accommodation. They now want to employ a cleaner, but HMRC will only allow payrolls to be setup for sole traders, partnerships or limited companies. Our clients do not fall into either of these categories, so do they have to register a partnership with HMRC to be able to operate a payroll? I'm sure this isn't a particularly uncommon situation, but can't find any information about how best to proceed.

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By Receipt-Bag
22nd Aug 2017 11:32

to me this appears as joint owners declaring their own share of rental income on their tax return? - some what 2 self employed individuals kind of situation

Option could be one of them to register as an employer and pay cleaner via payroll; recharge proportion to joint owner by way of cost recharge? or if too much of hassle, then depending on economics - use third party cleaner services and won't have to register as an employer!

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By lionofludesch
22nd Aug 2017 11:40

This can't be true. There must be hundreds, if not thousands, of unincorporated social clubs paying their bar staff under PAYE. They're not sole traders, partnerships or limited companies either.

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Replying to lionofludesch:
Euan's picture
By Euan MacLennan
22nd Aug 2017 11:55

There is an option on the HMRC online 'Register as an employer' checklist for "charity or committee-run organisation (eg a working men's club or parish council)", which covers your unincorporated social clubs.

There is also an option for "individual employing a carer or support worker in your home", which does not seem to fit the case exactly, but might be the closest.

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By User deleted
22nd Aug 2017 11:42

What about trying to telephone;
0300 200 3200 HMRC employer enquiries?

I'd also be tempted to try 0300 200 3211 HMRC support for new employers.

Surely someone within HMRC has the gumption to be able to help?

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By gilderda
22nd Aug 2017 12:07

If you employ a carer or support worker in your own home, then you have to phone HMRC to set up the payroll scheme. They won't let you register as an employer online.

I'm guessing this falls into the same category. Ring the support number for new employers in Chris Mann's post and explain the situation to them.

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By Marion Hayes
22nd Aug 2017 13:14

In the olden days you had to ring to open a domestic/simplified PAYE scheme. The guidance seems to have been archived in 2008 but I think it still applies.

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By paulandjudith
22nd Aug 2017 13:49

Thanks for all the comments and advice. Have now phoned HMRC and, after a 15 minute wait, got through to a pleasant and helpful member of staff who has opened a domestic PAYE scheme for our clients. You cannot do this online.

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