Employing staff for new business

Discussion in 'Employment & HR' started by Tonyubr, Feb 5, 2018.

  1. Tonyubr

    Tonyubr UKBF Newcomer Free Member

    Posts: 22 Likes: 0
    I'm about to appoint a manager to run my new shop but I'm worried that my wage bill might be too high until the business gets off the ground. What basis can I employ her on so she takes home 22k+
    Without me having to fork out paye nic and pensions contributions immediately? Many thanks in advance for any help.
     
    Posted: Feb 5, 2018 By: Tonyubr Member since: Nov 13, 2017
    #1
  2. Highland Spring

    Highland Spring UKBF Regular Full Member

    Posts: 129 Likes: 10
    Pensions don't usually start for 3 months, so you'll have a little time before the auto-enrolment kicks in.

    But maybe you can't afford her so perhaps consider doing the role yourself until its more established.
     
    Posted: Feb 5, 2018 By: Highland Spring Member since: Jan 20, 2018
    #2
  3. Tonyubr

    Tonyubr UKBF Newcomer Free Member

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    Unfortunately that is out of the question as I am not a barber. I was thinking more in terms of employing on a freelance or zero hours basis.
    Basically I just need not to pay contributions for 6 months or so
     
    Posted: Feb 5, 2018 By: Tonyubr Member since: Nov 13, 2017
    #3
  4. Newchodge

    Newchodge UKBF Big Shot Free Member

    Posts: 8,258 Likes: 2,082
    Legally, you can't. Illegally, that;s up to you, and HMRC and Action Fraud.
     
    Posted: Feb 5, 2018 By: Newchodge Member since: Nov 8, 2012
    #4
  5. Tonyubr

    Tonyubr UKBF Newcomer Free Member

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    So freelance is out of the question?
     
    Posted: Feb 5, 2018 By: Tonyubr Member since: Nov 13, 2017
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    Posts: 5,141 Likes: 501
    Its not out of the question but it does have problems for you. Big ones.
    I can't think of many places that would be happy with a freelance manager, they are not employees and you cannot treat them like one.

    If you cannot afford £22k plus cost of employing them then start them off at a lower rate with an increase after 3 months say.
     
    Posted: Feb 5, 2018 By: Mr D Member since: Feb 12, 2017
    #6
  7. Tonyubr

    Tonyubr UKBF Newcomer Free Member

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    Yes i think that will have to be the answer alas. Thank you
     
    Posted: Feb 5, 2018 By: Tonyubr Member since: Nov 13, 2017
    #7
  8. tony84

    tony84 UKBF Big Shot Free Member

    Posts: 5,080 Likes: 849
    I thought barbers rented a chair on a self employed basis?

    It sounds like you have not really thought this out in the slightest. I want a business with a manager but I cant pay them for 6 months.

    If the manager goes on holiday the place closes.
    If they are ill, it is closed.
    If they get a better offer and decide to leave with no notice period (are you really going to take them to court if you cant afford their wages), you are closed.

    Why do you need a manager?
    Why not have a barber and you be the manager? You make people a brew, you take the money, you sweep up, you manage the place and let the barber cut the hair. Once it is up and running then promote that person to a manager and take on another barber if needs be.
     
    Posted: Feb 6, 2018 By: tony84 Member since: Apr 14, 2008
    #8
  9. Xtm_Mike

    Xtm_Mike UKBF Regular Full Member

    Posts: 425 Likes: 97
    You don't need to be a barber to manage the business, let the barber cut the hair, you can do everything else.

    You'll probably want more than one Barber if you want it to be a success. people wont wait very long and one barber = slow moving queue.
     
    Posted: Feb 6, 2018 By: Xtm_Mike Member since: Dec 10, 2010
    #9
  10. Tonyubr

    Tonyubr UKBF Newcomer Free Member

    Posts: 22 Likes: 0
    Quite a simplistic view but thank you it made us all giggle. I run my own business so sweeping the floor and making a brew as much as I'd love to would be tricky. I need this particular manager as she will hopefully bring many of her old clients along with her
     
    Posted: Feb 6, 2018 By: Tonyubr Member since: Nov 13, 2017
    #10
  11. tony84

    tony84 UKBF Big Shot Free Member

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    Good to know we are giving each other a laugh.
     
    Posted: Feb 6, 2018 By: tony84 Member since: Apr 14, 2008
    #11
  12. Mr D

    Mr D UKBF Legend Free Member

    Posts: 5,141 Likes: 501

    Why would a manager of a barbers bring clients with her? I can imagine a stylist would, I can imagine someone doing the job could, but a manager?

    And just remember if you rely on people bringing customers with them when they come to you then expect to lose those customers when the people leave.
     
    Last edited: Feb 6, 2018
    Posted: Feb 6, 2018 By: Mr D Member since: Feb 12, 2017
    #12
  13. Jamie Goodwin

    Jamie Goodwin UKBF Newcomer Free Member

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    Could you not employ her as a trainee manager first?
     
    Posted: Feb 7, 2018 By: Jamie Goodwin Member since: Feb 7, 2018
    #13
  14. Newchodge

    Newchodge UKBF Big Shot Free Member

    Posts: 8,258 Likes: 2,082
    He can call her anything he wants, but if he wants to pay her 22k he has to comply with the law on NI, pensions and holidays. The title means absolutely nothing.
     
    Posted: Feb 7, 2018 By: Newchodge Member since: Nov 8, 2012
    #14
  15. Tonyubr

    Tonyubr UKBF Newcomer Free Member

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    Yes I could but how will that in my quest to find a suitable employment status for one of my managers and to avoid paying costly contributions for the early days at least whilst remaining within the law?
     
    Posted: Feb 7, 2018 By: Tonyubr Member since: Nov 13, 2017
    #15
  16. Tonyubr

    Tonyubr UKBF Newcomer Free Member

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    Thank you Cyndy
     
    Posted: Feb 7, 2018 By: Tonyubr Member since: Nov 13, 2017
    #16
  17. Tonyubr

    Tonyubr UKBF Newcomer Free Member

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    Although you didn't mention paye?
     
    Posted: Feb 7, 2018 By: Tonyubr Member since: Nov 13, 2017
    #17
  18. Newchodge

    Newchodge UKBF Big Shot Free Member

    Posts: 8,258 Likes: 2,082
    Me? PAYE costs you nothing.
     
    Posted: Feb 7, 2018 By: Newchodge Member since: Nov 8, 2012
    #18
  19. Tonyubr

    Tonyubr UKBF Newcomer Free Member

    Posts: 22 Likes: 0
    Listen thank you all I think I've explored this enough and got the answers I need.

    Kindest regards
     
    Posted: Feb 7, 2018 By: Tonyubr Member since: Nov 13, 2017
    #19