Taking on a casual worker

[Becky_simon]

Hi there

I could do with some guidance please, preferably not just a link directing me to HMRC as iv read it all but it's confusing me.

If you have a business that operates on a mobile basis and they take on a casual labourer to do probably no more then 4-16hrs a week (very much variable depending on what work gets booked in) can you just pay them through a bank transfer (do you accounts accordingly) or do I have to put them on this PAYE scheme and put then down as an employee?

Thank you

 

[libbylou]

You would have to have employers liability insurance, this is most important,without it you would be breaking the law and would end up with a criminal record. You must supply wage slips. If she has another job there is no way of avoiding paye. Best ring your accountant they will point you in the right direction.

 

[Becky_simon]

You would have to have employers liability insurance, this is most important,without it you would be breaking the law and would end up with a criminal record. You must supply wage slips. If she has another job there is no way of avoiding paye. Best ring your accountant they will point you in the right direction.

I was told by my accountant if you aren't classed as an employee (no contract) then there is no need for pay slips as you are classed as a casual labourer.

 

[libbylou]

Ring HMRC and double check, i was of the impression by law everyone must have a wage slip. My accountant does ours monthly to keep the costs down. x

 

[Becky_simon]

So taking payslips out of the equation, can you pay casual workers through a bank transfer?

What's the amount you can pay without paying tax on it ?

 

[squidgernetball]

You can pay £190 per week without paying tax or ni but you have to be sure they're not in any other employment.

I don't think you have to provide a wage slip but you would have to keep a record of hours/payments etc as these are also obviously tax deductible for you.

You would also need to check as to whether or not they are entitled to holiday pay after certain hours worked but I think this is irrelevant if they're on a zero hours contract.

As always, don't forget that 'I read it on salon geek' won't count if HMRC decide to investigate you, so best to seek some advice from HMRC.

Vic x

Sent from my GT-I9195 using SalonGeek mobile app

 

[libbylou]

A casual worker is entitled to holiday pay, they have more rights then we think.xx

 

[Spa Therapist]

I'm not an expert on employment law by any stretch of the imagination, but I've been employed as a "casual worker" for 8 years by several salons and spas. Every one of them provided holiday pay, wage slips, p60s, p45s and had me enrolled on PAYE (except one who didn't and got fined by Hmrc!) I was also entitled to statutory maternity pay, so that's something else to consider. The company I work for at the moment has been made to join the new government pension scheme and they only employ "casual workers". I don't think there's much difference legally, workers have rights no matter what you do.

 

[Towergate H&B]

From an insurance point of view this follows employment law and not tax law. Basically if a voluntary worker is working for you, be it part time, they are classed as an employee. If you are paying for the casual labourers time without them invoicing you for their time and you are simply bank transfering pay to them then you probably will require employers liability cover. It may well be worth speaking to your existing insurers to get their opinion but this would be how I see it