Employing 'Casual Staff'

Morgan · Mar 28, 2007

Hi all

I just wondered if anyone has any experience in employing casual staff ie what their rights are etc? I have looked on Business Links/HMRC but there doesn't seem to be an awful lot?

Thanks

Kent Accountant · Mar 28, 2007

Their rights subject to their contract of employment are exactly the same as any other employee

Morgan · Mar 28, 2007

Thanks Bob

I'm not sure how I practically implement it. The lady in question is going to be employed to help with my overflow of dogs to walk ie one week she might walk one dog, the next she may walk 3 dogs. She is retired and this is her only job and it won't pay enough for her to have to pay tax on. Do I still have to pay NI for her?

Is it enough if I just keep a written record of how much I've paid her ie for one dog walk she will get £8 and the date in which I've paid her?

Write My Site · Mar 28, 2007

I use freelance writers quite a lot and pay them on invoice.

Kent Accountant · Mar 28, 2007

You really need to take some advice on this. If she is an employee, you will need employer's liability insurance, holiday pay etc. You may have to deduct tax at basic rate - 22% - unless she can sign Box B on a P46, which you will need to complete http://www.hmrc.gov.uk/forms/p46.pdf. It is probably possible for her to be self-employed in her own right but you will need to talk over the wording of your agreement with her with your accountant.

bwglaw · Mar 28, 2007

Not all workers are employees, some are workers, which has a much broader definition You should take legal advice on the matter from a lawyer (not an Accountant) and have contracts professionally drawn up to avoid inadvertently giving a person greater employment rights.

Jonathan

Kent Accountant · Mar 28, 2007

bwglaw said:
Not all workers are employees, some are workers, which has a much broader definition You should take legal advice on the matter from a lawyer (not an Accountant) and have contracts professionally drawn up to avoid inadvertently giving a person greater employment rights.

If you use a lawyer, try and find one that has read the HMRC Employment Status manual. You should be able to arrange for the worker to be a self-employed contractor

KM-Tiger · Mar 28, 2007

bwglaw said:
Not all workers are employees, some are workers, which has a much broader definition

That's a new one on me, and I have been employing persons for quite some time.

Any chance of expanding on that a little? What bearing does it have on employment status from HMRC point of view?

Kent Accountant · Mar 28, 2007

KM the world as we know it is going mad. Sub-contractors although not employees may be workers and may be entitled to employment rights including redundancy and holiday pay

See http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1074452907

bwglaw · Mar 29, 2007

Kent Accountant said:
If you use a lawyer, try and find one that has read the HMRC Employment Status manual. You should be able to arrange for the worker to be a self-employed contractor

Not sure what you are insinuating/implying here.

In my opinion, HMRC interpretation of a person's employment status is not always in line with employment law.

Some workers may be employees, some may be independent contractors. There are several practical tests to determine which category the person is likely to fall in and it is not just what the contract says.

Workers are generally not entitled to redundancy pay. If a person is a worker continuously for 2 years (to qualify) then the worker will be an employee thus entitled to redundancy pay.

sjbeale · Mar 29, 2007

You can employ them on a casual hours (zero hours) contract which is on an as and when needed basis whereby they accrue pro rata holidays. They are an employee and you have to pay PAYE and NI where appropriate.

Alternatively you can use self employed people who pay their own tax and NI and there is no employment relationship.

I sell templates for both of these kinds of relationships on my website.

jan-july · Mar 29, 2007

Goodness. It seems a minefield for a small employer. I employ a retired person on a casual basis, working as and when needed. As the person is of State Retirement Age, there is no NI to pay, however, I would still be liable for employer's NICs if the person earns more than the Earnings Threshold. The person is entitled to holiday pay on a pro rata basis, but is not entitled to SSP as although under 65, the weekly earnings are less that the Lower Earnings Limiit. I have received a Tax Code, as the person draws State Pension and have filled out a P11 form, however the amount earned is still insufficient to deduct tax.

You could contact the Tax Office and they will send you an Employer Pack with helpbooks covering all aspects of employing workers. You will find the Tax Office extremely helpful.

bwglaw · Mar 29, 2007

Sandra - the scenario you gave, the person is likely to be a worker (not an employee) and the employer deducts PAYE/NI unless you agree with the worker to be paid upon invoice which then leans them towards being self-employed.

jan-july · Mar 29, 2007

I doubt that the Inland Revenue will recognise that a person is self-employed if he/she only works for one person/company.

bwglaw · Mar 29, 2007

jan-july said:
I doubt that the Inland Revenue will recognise that a person is self-employed if he/she only works for one person/company.

I agree, likely to be a worker. If there is some continuity then possibly an employee depending on the employment relationship.

Jonathan

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Employing 'Casual Staff'

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