Part Time Workers

[44BelvoirStreet]

Hi, we are a relatively new sandwich/deli in Leicester and have been trading for the pasrt 6 months. As we have got busier and our takings are on the up we have now advertised for a part time member of staff. This person will work 20 hours per week and earn approx £100.
Our questions are:
1. Do they need a contract of employment?
2. Can we pay cash to them or do wages have to be via bank account?
3. What do we need to tell HMRC?

Those are our main questions BUt if anyone has any extra information on this issue we'd be happy to hear it.

 

[Richie N]

I think you need to get yourself an accountant first of all.

You can't be serious asking these questions?

 

[Newchodge]

Yes they do need, at least, a statement of main terms and conditions.

You can pay in cash or via a bank account, but you must supply an itemised pay statement.

Are you a limited company or are you a sole trader/partnership?

20 hours at £100 per week sounds less than minimum wage. If the person you employ is over 21 years of age the current minimum wage is £6.19 per hour. It is less if they are younger.

 

[44BelvoirStreet]

Richie N - thanks for the advice - we are serious - hence my asking the questions - after all we are new at this so need some advice!

Newchodge - thanks for your reply. We are a sole trader. The £100 was a roundabout figure - we will pay the minimum wage. We will supply an itemised statement with each wage payment. And we will prepare a statement of main terms and conditions as you have suggested.

 

[Newchodge]

OK, the reason for the question is that a limited company often employs the director. However in this scenario you will only have 1 employee who is paid below the NI threshold.

Your behaviour is governed by the employee:

If the employee has no other souce of income, such as a pension, a second job or benefits income, you have to get them to complete a P46 and give you proof that they are eligible to work in this country. Take a copy of what they give you (passport, birth certificate etc) and keep that in their personnel file. Record what you pay them and keep the records.

If they have another job, a pension etc, you do the same as above, but you also have to register as an employer with HMRC and report under the RTI regulations that come into force next month.

Have a look here:

http://www.hmrc.gov.uk/paye/intro/register.htm

Give me a shout if you have any further queries.

 

[sjbeale]

Have you thought about taking on an apprentice to undertake the work? You could pay them less but you would have to provide them with a training plan. A lot of my clients are considering this option. This week is National Apprentice Week so there is lots of information on the web about this. You can get funding and help to find someone. If you need help with this please pm me and I can put you in touch with some organisations.

 

[Newchodge]

While an apprentice can be a good idea, you need to look very carefully at your future plans. It is very much more difficult to dismiss an apprentice than an ordinary employee if your business does not develop in the way that you expect.

 

[sjbeale]

With the correct type of agreement in place an organisation may fairly dismiss an apprentice by following a fair process. There are so many young people out there that deserve a chance to get on the career ladder I think apprenticeships are a great idea.

 

[Chris Ashdown]

Wow a apprenticership in serving tea and a sandwich in a cafe, that would really be worth while taking up the offer, maybe they could do the abridged apprenticership reduced down to one week instead of three years

Nearly as good as a photograph of a Nigerian Degree

 

[10032012]

You need to get employers liability insurance before taking them on.

 

[henrichrisfoundation]

Wow... congratulation on your business. Get at least a book-keeping person to help you put things in order while it is not too late. Your business is expanding very soon you will be opening may be a new branch. Get the accounts in order now.