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Hiring a person for 3-4 days

Discussion in 'General Business Forum' started by Dave0108, May 30, 2017.

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  1. Dave0108

    Dave0108 UKBF Contributor Free Member

    52 1
    Hi,

    I run a limited company and currently planning to order a very large job lot of mixed stock. I have never hired anyone as I do all the work myself.

    I have estimated it would take around a 3-4 days (depending on how quick someone is) to sort all stock and record it all into excel in the format that I need it to be in for later import to Amazon etc...

    I have made an advert on Gumtree to test the water for what sort of prices people will be interested to do it for.

    Best offer I found was a guy who said he would be happy to do the work for £250.

    I only need him for doing this one job.

    How do I hire him while staying within necessary rules?

    What paperwork will I be required to keep for records and my accounts?
     
    Posted: May 30, 2017 By: Dave0108 Member since: Oct 16, 2015
    #1
  2. Root 66 Woodshop

    Root 66 Woodshop UKBF Big Shot Free Member

    5,137 1,388
    make sure he provides you with an invoice.
     
    Posted: May 30, 2017 By: Root 66 Woodshop Member since: Nov 22, 2011
    #2
  3. Dave0108

    Dave0108 UKBF Contributor Free Member

    52 1
    Is there guidance from HMRC on what must be on an invoice when hiring a Self Employed worker for small project?

    From my general knowledge this goes onto the invoice:
    • His name and address
    • My company name and business address
    • Date
    • Description of work
    • Agreed price of work
    • Terms of payment (e.g. after all work has been completed and inspected).
    Anything else is required?
    What other records do I need to keep?
    Do I need a copy of his ID , national insurance number? etc?
     
    Posted: May 30, 2017 By: Dave0108 Member since: Oct 16, 2015
    #3
  4. deanpunchard

    deanpunchard UKBF Regular Free Member

    167 26
    How they write their invoices is up to them. But it should contain their name, company name and number (if applicable), invoice amount, date of invoice and payment terms.

    You'll need a copy so you can put it through as expenses.

    It's up to them to sort the rest (ie tax).

    But don't forget a quick agreement, even if it's just an email, to confirm the scope of work and costs before they start, and explain it isn't "cash in hand" and you will need an invoice.
     
    Posted: May 30, 2017 By: deanpunchard Member since: Dec 30, 2012
    #4
  5. mb30

    mb30 UKBF Newcomer Free Member

    18 1
    Are you over thinking this one? I mean if it was a week or more then ok but surely 3-4 days "work" for £250 isn't going to have the tax man banging down your door. :-(
     
    Posted: May 30, 2017 By: mb30 Member since: May 28, 2017
    #5
  6. deanpunchard

    deanpunchard UKBF Regular Free Member

    167 26
    But it can still be put down as a business expense. You can't if you don't have an invoice.
     
    Posted: May 30, 2017 By: deanpunchard Member since: Dec 30, 2012
    #6
  7. Dave0108

    Dave0108 UKBF Contributor Free Member

    52 1
    I am still new to running a limited company and want to ensure I do everything correctly so I do not get caught out later on when I am missing some bit of paper or it is in the wrong format etc....

    I found a few suppliers who sell customer returns which are unsorted, but are a good price.It is very brain-numbing work to sit and sort stock and enter THOUSANDS of item titles, sizes, brands, EAN into Excel. I can do it myself but got to a point where I am happy hire someone to do it for me.

    Maybe if the business keeps growing it will be a regular thing where each month a big shipment will come in and I will need someone to process the stock 3-4 days. I do not want to hire a permanent employee as I would not really have any other work for them the rest of the month...
     
    Posted: May 30, 2017 By: Dave0108 Member since: Oct 16, 2015
    #7
  8. S2K

    S2K UKBF Regular Free Member

    172 27
    If you want to do everything correctly it's a good idea to put the person under payroll because I'm pretty sure he/she is not doing this sort of job on regular basis, so he/she's not self employed.

    Get a contract between you two and make sure you're covered in event of theft or damaged stock due to negligence.
     
    Posted: May 30, 2017 By: S2K Member since: Apr 17, 2017
    #8
  9. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,298 1,852
    I agree with this and enter the emergency tax code 1150L. This will cover both you and the employee .
    If the person is by any chance self employed then your in luck and should pay him or her on invoice
     
    Posted: May 31, 2017 By: JEREMY HAWKE Member since: Mar 4, 2008
    #9
  10. Thomas Parkinson

    Thomas Parkinson UKBF Newcomer Free Member

    3 0
    You can pay him just by invoice if he is self employed, although ensure he has a UTR - unique taxpayer reference and ask for it. Even get a copy of the letter from HMRC with the number on for your records.

    That way you know he's setup for self employment rather than tax dodging
     
    Posted: Jun 6, 2017 By: Thomas Parkinson Member since: Feb 11, 2017
    #10
  11. Blunderer

    Blunderer UKBF Newcomer Free Member

    25 3
    How much in real terms would it cost you if u gave him 250 out of ur back pocket ?

    320 ish ?

    Is 70 pounds worth the amount of time ur wasting on thinking about it ?
     
    Posted: Jun 22, 2017 By: Blunderer Member since: May 7, 2017
    #11
  12. Scalloway

    Scalloway UKBF Legend Free Member

    16,595 3,514
    Are the HMRC penalties for following this advice worth it?
     
    Posted: Jun 23, 2017 By: Scalloway Member since: Jun 6, 2010
    #12
  13. Talay

    Talay UKBF Big Shot Free Member

    3,876 811
    Whatever the tax issues, you need to understand that if there is any rush to complete the job the error rate will increase exponentially.

    As someone whose business includes adding new stock to EPOS and some occasional manipulation of data in Excel to facilitate, I'd ask how they would check something simple such as whether a line or code had been entered twice, once by mistake.

    If they know Excel, they will know instantly how to do this. If they don't, then they don't know how to check their own work and you need someone else.
     
    Posted: Jun 25, 2017 By: Talay Member since: Mar 12, 2012
    #13
  14. Blunderer

    Blunderer UKBF Newcomer Free Member

    25 3
    I didn't give any advice I asked a question .
    Clearly HMRC would be round kicking the doors in if they found out.
     
    Posted: Jun 25, 2017 By: Blunderer Member since: May 7, 2017
    #14
  15. kulture

    kulture UKBF Legend Staff Member

    8,152 2,261
    Why not simply go to an employment agency and ask for a temp. The agency will do all the hard work finding you a person. They will ensure that the person is properly set up. They will invoice you and you pay them. You may find that this is an exercise that you repeat, so you can establish a long term relationship with an decent local agency.
     
    Posted: Jun 25, 2017 By: kulture Member since: Aug 11, 2007
    #15
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