Self employed or employed??

[harrybuk]

I am considering taking on a staff member to generate business leads for me on a commision only basis. I understand this is legal but should be on a self employed basis, otherwise I am required to pay minimum wage.

I am curious about a couple of thing about this arrangement:

Would my staff pay the same rate of tax as I would have to pay on their behalf if they were a regular employee? The only difference being that they are paying it not me?

Would they have to register as a LTD company or as a sole trader with companies house?

And what other differences would the two arrangements entail?

Thanks in advance!

 

[Apprentice Guru]

One thing to consider is that they should have the potential to earn at least minimum wage if they're working effectively on a self employed basis for you. You don't need to worry about their tax, NI etc, they do.

 

[harrybuk]

Here is the details of the positon,
https://www.peopleperhour.com/job/b2b-lead-generation-from-home-good-product-with-good-commi-151320

 

[Apprentice Guru]

I'd be more worried about finding somebody that's willing to agree to those terms...

 

[harrybuk]

I already have so far; and what is the issue?

 

[Apprentice Guru]

I don't see much risk sharing.

 

[alsze]

If you want to expend your business, I recommend you have 1 staff, if you are just starting the business, You can do it yourself, then consider the case later....

 

[Talay]

It isn't a very tight job description and is littered with spelling mistakes and random graphics. Should it look more professional ? I would have thought so. Is it going to attract the right people ? I am not sure.

Remuneration is not totally clear and includes unquantifiable gifts which could be worthless to the applicant.

I also agree the risk seems to be loaded on the applicant with not much being shared by the company. To me, this would make it highly unattractive.

I think I know what you are asking for so why not invest a little. Can't they use VOIP to call from their house but from your number ? They could be provided with whatever equipment this requires, though I might baulk at giving them an expensive laptop. Candidates would need their own broadband.

To highlight how bad using a mobile is for such business, I was called by such a new company in recruitment recently. I see it is a mobile number before I answer it. The person calling me is on a headset, which is reverberating very badly, making it a very bad line.

Am I going to do business with them ? No way. Why ? largely because their approach is unprofessional. If they cannot afford a landline, what customer support can they possible offer ?

There are guys on here who supply and who use VOIP extensively. I would think about touching base with one of them and investigating whether you could reverse the virtual office set up to project a real office using remote staff.

I would also rethink the remuneration, offering something, even if only a small retainer. I accept you might need to make this retainer conditional on having provided at least one sale (perhaps more) but it would allow people to work from a base wage.

You might also need to consider whether you need a different remuneration structure if you believe your target contractors would be in receipt of benefits.

 

[Talay]

It isn't a very tight job description and is littered with spelling mistakes and random graphics. Should it look more professional ? I would have thought so. Is it going to attract the right people ? I am not sure.

Remuneration is not totally clear and includes unquantifiable gifts which could be worthless to the applicant.

I also agree the risk seems to be loaded on the applicant with not much being shared by the company. To me, this would make it highly unattractive.

I think I know what you are asking for so why not invest a little. Can't they use VOIP to call from their house but from your number ? They could be provided with whatever equipment this requires, though I might baulk at giving them an expensive laptop. Candidates would need their own broadband.

To highlight how bad using a mobile is for such business, I was called by such a new company in recruitment recently. I see it is a mobile number before I answer it. The person calling me is on a headset, which is reverberating very badly, making it a very bad line.

Am I going to do business with them ? No way. Why ? largely because their approach is unprofessional. If they cannot afford a landline, what customer support can they possible offer ?

There are guys on here who supply and who use VOIP extensively. I would think about touching base with one of them and investigating whether you could reverse the virtual office set up to project a real office using remote staff.

I would also rethink the remuneration, offering something, even if only a small retainer. I accept you might need to make this retainer conditional on having provided at least one sale (perhaps more) but it would allow people to work from a base wage.

You might also need to consider whether you need a different remuneration structure if you believe your target contractors would be in receipt of benefits.

 

[harrybuk]

Thanks for the feedback.


To address the points,

Yes maybe you are right it looks a bit messy. It was late when I posted it, and I was in a kind of a state of panic about certain issues when I did. I will probably fix it up

At this stage my company is a startup and have very little funds to invest in equiptment. At this stage, overheads must be kept to a minimum... so I have no choice but to suggest mobiles. The calls will be set to "private number" so people will hopefully not know any difference. I do have a landline number also though for my own calls.

And can you please elaborate on the risk sharing issue?

Thank you

 

[10032012]

Thanks for the feedback.


To address the points,

Yes maybe you are right it looks a bit messy. It was late when I posted it, and I was in a kind of a state of panic about certain issues when I did. I will probably fix it up

At this stage my company is a startup and have very little funds to invest in equiptment. At this stage, overheads must be kept to a minimum... so I have no choice but to suggest mobiles. The calls will be set to "private number" so people will hopefully not know any difference. I do have a landline number also though for my own calls.

And can you please elaborate on the risk sharing issue?

Thank you

a recruitment consultancy with a poor job description?!

sounds like you are attempting flogging a dead horse.

(I have based this on Talay's comments - not viewed the link.)

 

[GBIMPORTEXPORTRETAIL]

Let me add to this, please.

A few weeks ago, I applied to a job advert online. I was apparently lucky because I was invited to interview. I got through. Apparently one of a very few (I think that was ******** btw). I went the next day for training. I had to be there for 08:45. I had to walk around Marylebone selling Lovefilm subscriptions - very good subscription prices - but with a coach and another trainee until 7pm. Only the coach earned money - £28 for two sales. The target was 6 or 7 a day. Most of the shops we walked in had already been visited by Lovefilm sellers (From the same agency).

I spent the same amount of money traveling there. I left at 8pm getting back home after 9pm, and then they wanted me back at 7:30am in London Bridge to do it all again, and for another four weeks until, maybe I would be promoted.

Needless to say, it was ********. I was desperate for money. I thought about it. Lovefilm is not the worst thing to sell. However, all that walking and effort for £28 for my coach.

No thankyou.

 

[simon field]

Personally speaking, if I see "Private Number" displayed on my phone, I knock it off and dismiss it as nuisance guff-stuff.

It looks suspicious at the very least