Sole Trader - Employing Staff?!

[AnnetteT]

Hi,

My partner is a Sole Trader. He has been trading for almost a year & during his time not taken any money from the business whilst trying to build it up. He is now in a position to start paying himself money which we are OK with but wanted to know whether he can legally employ anyone else whilst being a sole trader?

Basically, I have been supporting my partner doing the accounts, covering sales, marketing etc. All unpaid so far and on an adhoc basis. I have now resigned from my day job and we are looking to put me on a salary. Is this allowed and if so how do we cover NI, Taxes etc?

Many thanks.

 

[paulears]

It's fine, he can employ whoever he wants. If you're going to be the only member of staff, then I reckon it's easy enough to do yourself and not involve outsiders. I simply called HMRC and asked what to do - explaining I was green. They sent me a pack with all the info required, and a CD to pop in the PC. This works everything out for you - telling you what figures you need to enter on the employee payslip, and how much tax and NI to pay. It's fairly simple and even I could work it. There's a big form where you enter each payment, with a running total and loads of boxes to complete. Everything you need, forms wise is in the pack, and I made it work fairly easily. The only bind is simply filling the damn form in!

 

[Williams lester]

You will need to register as an employer, you can do that here http://www.hmrc.gov.uk/paye/intro/register.htm#3.

I would suggest using a payroll package such as 12Pay http://www.12pay.co.uk/, the express edition is free.

 

[AnnetteT]

Thank you for the info, much appreciated!

It's fine, he can employ whoever he wants. If you're going to be the only member of staff, then I reckon it's easy enough to do yourself and not involve outsiders. I simply called HMRC and asked what to do - explaining I was green. They sent me a pack with all the info required, and a CD to pop in the PC. This works everything out for you - telling you what figures you need to enter on the employee payslip, and how much tax and NI to pay. It's fairly simple and even I could work it. There's a big form where you enter each payment, with a running total and loads of boxes to complete. Everything you need, forms wise is in the pack, and I made it work fairly easily. The only bind is simply filling the damn form in!

 

[AnnetteT]

Thank you, will look into the payroll package too. Was worried this was going to be another headache but you've both made it much easier!!

You will need to register as an employer, you can do that here http://www.hmrc.gov.uk/paye/intro/register.htm#3.

I would suggest using a payroll package such as 12Pay http://www.12pay.co.uk/, the express edition is free.

 

[AnnetteT]

Hi, Do you know if the 12pay sw is compatible with Mac? I just tried to download but its not working.

You will need to register as an employer, you can do that here http://www.hmrc.gov.uk/paye/intro/register.htm#3.

I would suggest using a payroll package such as 12Pay http://www.12pay.co.uk/, the express edition is free.