Donate SIGN UP

Employing the Self Employed

Avatar Image
skinnyninny | 21:57 Sat 01st Nov 2008 | Business & Finance
11 Answers
I have a small gift shop and run it six days a week. I have to go away for three weeks and need someone to run it for me. I obviously do not have a payroll system and I don't think one employee would justify it. Someone suggested employing a freelance or self employed person where they pay their own stamp and tax etc. If viable then I would like him/her to work one or two days a week so I can go stock buying etc. Anyone up on the employment law. (I do have an accountant but every call or visit is more money!!!)
Gravatar

Answers

1 to 11 of 11rss feed

Best Answer

No best answer has yet been selected by skinnyninny. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
how soon are you going away? if you've time try someone out before you go,having had references,so they have chance to know how you like things done.
Sorry, but you can't pick and choose whether to bother operating payroll just because "one employee doesn't justify it".

If a person works for you and only for you and does a job where you dictate when he or she works and doesn't come in when he feels like it then he's an employee and it's your responsibility to run a payroll system for that. Regardless of whether it suits both parties to hire someone on a self employed basis, the situation you describe would see the Revenue deem an employee relationship, not self employment.
Question Author
Many thanks Petal54 and Skyline D - all your info taken on board.
You could 'use' a part-timer or three. None should be paid more that �89pw to avoid tax & NI. One person for 3weeks-full time has all emplolyment rights.

You can always use a 'volunteer' to run your shop and reimburse them with a generous 'thank-you' gift.

Where do you live.....I would volunteer for the experience.
Employer's NI starts well below �89 a week - �75 or �80 from memory.

Unless things have changed recently
I don't see why you can't employ a 'freelancer' who pays their own tax and NI. All you have do is ensure that they prvoide you with an invoice that you can out thru the books. After all, it's no different than how your accountant works!!
Skinnyninny, patidors is quite wrong; just because somebody gives you an invoice, that doesn't mean they're self employed; neither does the fact that they pay their own tax and NIC. What matters is the facts of the arangement between you and Skyline is quite right; the arrangement you describe would be employment.
You could potentially use (clearly not 'employ' as that's a contradiction) a freelancer who invoices you for services only if that person regularly goes around offering such a service to many shops and businesses. In other words, he or she is a self employed shop manager who moves from one to another regularly somewhat like a locum doctor or dentist. In rpactice it's not going to happen.

Also, further to earlier answers, NI, both Employee's and Employer's, becomes payable on payments of over �105 per week. It was �89 for the tax year 2003-04 but has gone up since.
You CAN have a self-employed person regularly "working" for you. I do as do many others. The difficulty comes in dictating any working conditions or specific hours. You will agree a rate for their services then they can EXCLUSIVELY operate as a self-employed associate who offers their services to you.
Could an agency supply a suitable person?

You pay the agency, they pay the employee.

Pretty expensive though, I guess.
Unsafe to have SE or 'freelancers' without proof. An employer is responsible for withdrawing tax & NI from wages; one third deduction recommended by IR!

Safer to have part-timers at maximum of �105pw -no Tax & NI due. Under 21y works for less than minimum wage. Pensioners extra income limited before pension affected.

Alternative could be to 'rent' business while absent so the worker pays you 'income-as rent' after removal of their exes.

1 to 11 of 11rss feed

Do you know the answer?

Employing the Self Employed

Answer Question >>