How to Employ cleaners for my cleaning company

[Maria Smith]

Hello my names Maria

Im in the process of setting up my cleaning business and wondering if anyone could offer any advice. I would like to employ 5/10 cleaners to start with as I have done some advertising and I am receiving a fair bit of work already. My company is a registered limited company and I also have public liability insurance. My question is the method of employment, I am unsure wether to have my cleaners as self employed staff where I would charge clients a booking fee and the cleaner is paid cash or have them on another contract whereby I would be responsible for their PAYE and all funds from the client would be paid directly to me in which I would then pay their salaries.

Does anyone know anything about this area? what would be the best method and contracts?

Thank you in advance

 

[Newchodge]

It is not a question of the best method, it is a question of the relationship between you and the cleaners.

if you control their behaviour - tell them where to go and when, check their work, take action if their work is not up to your standards etc, then they are employees.

If they are self employed and contract with you for each job, giving you a quote for what they will charge you and deciding themselves who they choose to do the job, then they may be self employed. If they are self employed you will, from April, have to report regularly to HMRC exactly who you have contracted with, supply their full details and amounts paid to them and explain why they were not put through PAYE.

If you merely charge the client a fee for intrroducing the cleaner and everything else happens between the client and the cleaner, you will lose control oif your clients very quickly - why should they pay you a fee for nothing beyond the initial introduction.

 

[HRinMinutes]

Agree with Newchodge in term of it depends on your business model. Many traditional cleaning agencies i.e. those who supply cleaners, supervise their work and invoice the client then pay their cleaners use a zero hours employment client and have sufficient cleaners on their rota to make it work for them.

 

[Deleted member 232637]

It really depends on what type of working relationship you wish to have wth them. Do you want to be able to give them regular work and hours or will it be adhoc? If they are to be employees, they will need regular hours and have more employment rights. If there are to be workers, then it will be ad hoc hours but they don't have to accept the work you provide and or could send someone else in their place.

If they are to be self-employed you will need to show all their details to HMRC and explain why they are self-employed. This is to combat employers paying self-employed people to avoid NI and Tax contributions.

If you want to talk it through then please drop me a PM, I give 30 minutes free advice so would be happy to talk things through with you.

Best wishes

Michelle

 

[Simply Business]

Hi @Maria Smith, it sounds like @Newchodge has hit the nail on the head.

If they're acting under your instruction, on behalf of your company etc, they will be classed as employees even if you consider them self employed. By law you'll need to cover them all for employers' liability (which will inevitably cost more for the more cleaners you have working for you).

If you're caught without employers' liability when you should have it, you can be fined up to £2500 per day, per employee, so it's best to make sure you're 100% sure around how you're contracting the work out!