wage below LEL

[Siralex]

Hi, could you please advise,
a friend of main intends to employ a person to work in his estate. Job will be 16 hours per week for a min. wage, so it's below the LEL and it will be the only job for an employee. Do they (employer and employee) need to inform revenue or something? Any other formalities?

Thank you.

 

[HungryHorse]

As far as I understand, there is no need to set up or operate a PAYE scheme when paying somebody below the LEL. Just keep your own records. I'm not sure how this works if you already have a PAYE scheme set up for other employees though, in that case you may have to run the employee below the LEL through too?

I'm sure somebody will give you a more definite answer soon. I'm pretty sure you don't need to do anything though.

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

As an employer you have a legal obligation to operate PAYE on the payments you make to your employees if their earnings reach the National Insurance Lower Earnings Limit (LEL). For the tax year 2012-13 this is £107 a week, £464 a month or £5,564 a year.

 

[David Griffiths]

No need to informa HMRC, or make any PAYE returns. Do, however, get the employee to sign a form P46 to confirm it's his or her only job. Just keep that on file.

 

[Siralex]

Thank you all for advice.