Advice on employment

[kezza*]

Quickly just go though this so you understand abit,,, what it is, I started a home salon 5 years ago then last year I expanded into a small salon, two treatment room two nail rooms. After my first month in the salon I needed to take someone on so spoke to my accountant who was get when I was at home and asked him. He has told me that to keep someone under earning £150 a week so there is no tax and no national insurance. So this is what I've been doing. I'm abit concerned as I feel it's not right and someone else I was talking to the other week said to be very careful as what he know that's not right, it just playing on my mind and trying so hard to do thinks right. He has also said that for him to do the pay role weekly it's £250 a week, plus going through the paye system. Any advise would be grateful thank you

 

[BannerPenguin]

If the person earns approx £150 a week then they are below the tax threshold so yes, no tax etc to worry about however that would be someone part time.

Payroll shouldn't be more than £50 for the year top whack.

 

[squidgernetball]

Doing payroll yourself really isn't that hard. You can download the software from the hmrc site. It means you're doing it all properly and you can declare everything you're paying, including their class 2 contributions. I now have my accountant do it. He included 2 lots of staff salaries in his charges. Up to 5 staff is £5 extra per month.

Your accountant clearly doesn't want to do it.

Vic x

 

[TanBird]

Do you mean £2.50 a week?

 

[squidgernetball]

Do you mean £2.50 a week?

No for a total sum of £5 per month on top of my accounting bill, they will do 3 more staff. So original accounting bill includes 2 staff.

Vic x

 

[kezza*]

Thank you,, I get the impression he doesn't want to do it too and he did say £250 a week. What do y do with p60's and p45's

 

[squidgernetball]

From memory the hmrc thing does it all for you. Think you just print it out. It really isn't too hard x