Staffing question

[nikki201]

Hi guys,

I rent a business along with a hairdresser. I have a nail bar, large treatment room and small treatment/tan room.

I'm thinking of taking on a girl I know to help me out as I'm so busy and next year I'm getting married and may need 2 separate ops on my feet so going to need someone to take over during this time. It's a big step for me!

The girl I have in mind is completely trustworthy, hardworking and has excellent customer service skills etc, all good. She is an air hostess at the moment, but really want to leave flying and get insheto beauty full time. She done various courses in beauty for example semi perm lashes, tanning, shellac mini pedi etc etc all good stuff, which she's great at!

Im thinking of taking her on as self employed, I provide all the products, she doesnt pay a rent, she uses my clients with a few more she might pull in with a bit of advertising, and we share her profits 50/50. She is on maternity leave at the moment until march. The government are paying it for her through her company, she gets £500 a month. Am I legally allowed to take her on for say 8 hours a week, just to build her confidence, get her used to the salon environment etc? Who would we contact to get advice? Hmrc? Thanks in advance xx

 

[Tomme]

Hi guys,

I rent a business along with a hairdresser. I have a nail bar, large treatment room and small treatment/tan room.

I'm thinking of taking on a girl I know to help me out as I'm so busy and next year I'm getting married and may need 2 separate ops on my feet so going to need someone to take over during this time. It's a big step for me!

The girl I have in mind is completely trustworthy, hardworking and has excellent customer service skills etc, all good. She is an air hostess at the moment, but really want to leave flying and get insheto beauty full time. She done various courses in beauty for example semi perm lashes, tanning, shellac mini pedi etc etc all good stuff, which she's great at!

Im thinking of taking her on as self employed, I provide all the products, she doesnt pay a rent, she uses my clients with a few more she might pull in with a bit of advertising, and we share her profits 50/50. She is on maternity leave at the moment until march. The government are paying it for her through her company, she gets £500 a month. Am I legally allowed to take her on for say 8 hours a week, just to build her confidence, get her used to the salon environment etc? Who would we contact to get advice? Hmrc? Thanks in advance xx

Iv no idea on taking her on during her maternity leave, but I will say air staff are great, they are used to and trained in high stress situations so should be great for your business.
Speak to hmrc and possibly acas for advice on what you can and can't do, I'm guessing hmrc are only bothered if you pay tax on her earnings xoxo

 

[emsyj]

You can't work at the same time as receiving statutory maternity pay (other than 'Keeping In Touch' days), so she would have to inform her previous employer that she has now returned to work and her mat pay would stop.

You cannot determine whether someone is self employed or an employee in the way you describe - whether a person is an employee for PAYE and NICs purposes and for employment law rights purposes is determined by reference to a number of factors, not the label you choose to apply to them. There is guidance on the HMRC website about the factors that point to an employment relationship for PAYE and NICs purposes, but from what you describe she sounds like she would be an employee - take a look at the guidance and see what you think.

HM Revenue & Customs: Employment status: employed or self-employed?

 

[AcidPerm]

Not sure if hmrc will class her as self employed if she pays no rent or pays for the products and also treats your clients? Just saying she's self employed doesn't cut it with them and you might end up with a bigger tax bill. Definitely worth getting professional advice before committing yourself.

 

[Tomme]

Not sure if hmrc will class her as self employed if she pays no rent or pays for the products and also treats your clients? Just saying she's self employed doesn't cut it with them and you might end up with a bigger tax bill. Definitely worth getting professional advice before committing yourself.

I think the op meant no rent as she would be taking a % of her takings rater than a flat rate rent xoxo

 

[nikki201]

Hi thanks for the replies, yeah I've read on here some people do this. They have someone work in their salon, don't pay a rent, products are supplied to them by the salon but they give the salon 50% of their wages. Maybe any geeks out there doing this at the moment could give me advice on how they go about this? Thanks again xx

 

[Brownie]

You class the 50% as rent x

 

[nikki201]

Thank you x

 

[IBUK]

Check with acas.... A member of our staff was off on maternity from us but still worked part-time elsewhere. When I asked they said she was perfectly entitled to

 

[emsyj]

Check with acas.... A member of our staff was off on maternity from us but still worked part-time elsewhere. When I asked they said she was perfectly entitled to

That's not what the guidance says here: Statutory Maternity Pay : Directgov - Money, tax and benefits

You cannot receive statutory maternity pay whilst working other than for up to 10 keeping in touch days for the employer you were working for before going off on leave. If you start work with a new employer, your SMP must stop.

What was your staff member's position? Had she finished work for mat leave but not yet had the baby? The position is different before and after the birth.

 

[nikki201]

She has had the baby, and she is on mat leave till march 2013. I think it's the government who pay her now as her pay has went down to £500 recently if that helps?

 

[emsyj]

If she was employed, then the employer will pay the statutory maternity pay and can normally claim back most of the cost from HMRC. If she was self employed, or did not qualify for statutory maternity pay from her employer, she may be in receipt of maternity allowance, which is administered by the DWP via the JobCentre.

Once the baby is born, statutory maternity pay and maternity allowance will cease to be payable once the mother returns to work. There is a limited exception for 'Keeping in Touch' days for employees in receipt of statutory maternity pay to enable them to e.g. attend training sessions, maintain relationships with colleagues etc - I'm not sure whether there is any equivalent concession for those receiving maternity allowance as I've never looked into it.