First employee?? 0 hour contract?
Discussion
Business is going well and i really could do with a hand.
Managed to find a guy to come and help me on a part time voluntary bassis for 10 hours a week. If i was going to pay him cash in hand he would want £7.50 an hour.
He has been working for the last three months and is a real asset.
The time has come to pay hime some money for his work and have him as a proper busines expense.
The working arrangement is very casual at the moment. He works most saturdays and some other hours when we are busy. He has the final say when he can work but is very reasonable and if he can't work one day will suggest another day that week.
It would worry me to give him a contract with fixed hours. I'm sure it wont, but there is always the risk work might dry up.
Things i need some information on are:
0 hour contracts. As his working times are not fixed can i pay him x amount on top of his hourly rate to cover his paid leave that he can take anytime? Is this legal?
Employers liability insurance. I know i need this by Law. What should i expect to be paying for 10 hours a week. If its £1000 a year it adds a shed load to my employment costs.
Should i just ask him to register self employed and get him to invoice me with a slight hourly rate increase?
Managed to find a guy to come and help me on a part time voluntary bassis for 10 hours a week. If i was going to pay him cash in hand he would want £7.50 an hour.
He has been working for the last three months and is a real asset.
The time has come to pay hime some money for his work and have him as a proper busines expense.
The working arrangement is very casual at the moment. He works most saturdays and some other hours when we are busy. He has the final say when he can work but is very reasonable and if he can't work one day will suggest another day that week.
It would worry me to give him a contract with fixed hours. I'm sure it wont, but there is always the risk work might dry up.
Things i need some information on are:
0 hour contracts. As his working times are not fixed can i pay him x amount on top of his hourly rate to cover his paid leave that he can take anytime? Is this legal?
Employers liability insurance. I know i need this by Law. What should i expect to be paying for 10 hours a week. If its £1000 a year it adds a shed load to my employment costs.
Should i just ask him to register self employed and get him to invoice me with a slight hourly rate increase?
1. Don't pay him "cash in hand". Don't even say "cash in hand" lol!
2. If you're his only customer then he can't be self employed, there's a rule called "IR35" which will look straight through this and deem him to be an employee. If this happens it will cost YOU the employer a lot of money. (Because eveything you paid him will be deemed to be his net pay, and so you'll have to pay over payroll taxes as if that was his net pay.)
Your best bet is to take him on as an employee, paid monthly with PAYE and NI deductions. I.e. do it properly.
He can have as many or as few hours on his contract as you like, but it's key that you do things properly. It's a pain, but it's part of employing people.
2. If you're his only customer then he can't be self employed, there's a rule called "IR35" which will look straight through this and deem him to be an employee. If this happens it will cost YOU the employer a lot of money. (Because eveything you paid him will be deemed to be his net pay, and so you'll have to pay over payroll taxes as if that was his net pay.)
Your best bet is to take him on as an employee, paid monthly with PAYE and NI deductions. I.e. do it properly.
He can have as many or as few hours on his contract as you like, but it's key that you do things properly. It's a pain, but it's part of employing people.
Garage19 said:
What i said was he works on a volutary basis. IF he was to work cash in hand he would want £7.50 ph.
He is a fabricator and does other odd welding jobs for people. He can invoice a few of those.
He also works 35 hours a week for another company PAYE.
if he were to be self employed contractor ( do he use his tools or yours / company?) he's probably got a defence against IR35 if he does other work for other people on top of his 'reallife job' He is a fabricator and does other odd welding jobs for people. He can invoice a few of those.
He also works 35 hours a week for another company PAYE.
you could pay him on a PAYE basis with a Zero hours contract - as a second job he's likely to be BR or if he's doing really well 0T (all at 40%) - after all that;s how many people who have a second job work . NI depends on periodic earnings in that job
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