Employing people for the first time
Employing people for the first time
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Flat-6

Original Poster:

2,354 posts

200 months

Thursday 9th November 2017
quotequote all
Morning all.

I am currently in the middle of setting up a new business (A pro paintball training site in the UK)
I have 2 other Ltd companies, but have never actually needed to "Employ" people, as they are both umbrella companies for contract work.

This one however is going to require a good few part-time casual staff members, especially when it gets busy next year.

Can anyone who has gone through this transition from contractor / standalone MD etc to employer shed any light
on the apparent mine-field that is being a first-time employer?

Things that are important for this situation:
- I will have 1-4 staff members on-site (plus myself) while open.
- I will open 1-3 days a week on average.
- Opening is highly booking and weather dependent.
- I cannot guarantee work at all due to this, but want to "Book" staff weeks or months in advance.
- I want to avoid Auto-enrolment, this shouldnt be an issue as nobody will be earning > £192 pw
- I understand I will have to pay holiday
- I have employer's liability insurance in place
- I intend to pay well over the going rate

Edited by Flat-6 on Thursday 9th November 11:36

Eric Mc

125,770 posts

295 months

Thursday 9th November 2017
quotequote all
Your business will need to register for PAYE and start submitting weekly or monthly real time information (RTI) returns.


ChrisPackit

274 posts

153 months

Thursday 9th November 2017
quotequote all

I have done this exact same thing from Contractor to full time employer, and know the headaches of employment.

If I had my time again, I would take each person on self employed, as it's far easier to say theres no more work than having to get rid of them. That way, you dont have to pay them for time not worked. Not sure how the new Employee Workplace Pension will affect you know, but its something you might have to consider and is an additional expense for the business.

Staffing is the biggest headache I found when running a business, and getting the right people is paramount. I found when employing guys, that I found I was stolen from, lied to, had business taken away and done by them individually in their own time, unreliable staff when having bookings coming from miles away, little commitment when things go wrong or things taking longer than expected... just want to bugger off on time.

I did this for 8 years and have now gone back to Contract work as the stress and headaches are far less, and in niche areas, can be more profittable.

Good luck matey!

Flat-6

Original Poster:

2,354 posts

200 months

Thursday 9th November 2017
quotequote all
Eric Mc said:
Your business will need to register for PAYE and start submitting weekly or monthly real time information (RTI) returns.
Thanks, yes I've been looking into this. I've considered outsourcing the HR element, but it seems rather expensive for my very small and irregular (expected) numbers.

Is there any software available to deal with the process of PAYE / tax and things like student loans, tax codes etc etc etc??

Flat-6

Original Poster:

2,354 posts

200 months

Thursday 9th November 2017
quotequote all
ChrisPackit said:
If I had my time again, I would take each person on self employed...

Good luck matey!
100% agreed - And I am happy to say that I have got 1 person lined up to do this.

However its rather hard to find freelance paintball marshals, so am inevitably going to have to dip into employment :-(

The workplace pension thing is in-hand, as long as nobody earns more than £10k/52 - £192 per week it doesnt apply.
Thats £63.33 per day on a 3-day week, which is handy, as i'll be paying £10 per hour for a 6-hour day ;-)

Sixpackpert

5,338 posts

244 months

Thursday 9th November 2017
quotequote all
Flat-6 said:
Thanks, yes I've been looking into this. I've considered outsourcing the HR element, but it seems rather expensive for my very small and irregular (expected) numbers.

Is there any software available to deal with the process of PAYE / tax and things like student loans, tax codes etc etc etc??
We use Qtac for our payroll. Works very well.

Eric Mc

125,770 posts

295 months

Thursday 9th November 2017
quotequote all
HMRC supplies a free to use set of online screens although I've never used it and I haven't heard great reports on it. If you are using an accountant, they may be able to offer a payroll service.

Dromedary66

1,924 posts

168 months

Thursday 9th November 2017
quotequote all
Flat-6 said:
Thanks, yes I've been looking into this. I've considered outsourcing the HR element, but it seems rather expensive for my very small and irregular (expected) numbers.

Is there any software available to deal with the process of PAYE / tax and things like student loans, tax codes etc etc etc??
HMRC provide "basic PAYE tools", an application that let you submit monthly payroll information.

I use this for myself as a single contractor operating as an LTD company.

However I should add i barely have a clue what I'm doing so half expect the taxman to come a knocking!

KevinCamaroSS

13,848 posts

310 months

Saturday 11th November 2017
quotequote all
Flat-6 said:
Morning all.

I am currently in the middle of setting up a new business (A pro paintball training site in the UK)
I have 2 other Ltd companies, but have never actually needed to "Employ" people, as they are both umbrella companies for contract work.
I am a bit mystified. IIRC an umbrella company is a company that 'employs' the sub-contractors as an intermediary between the individual and the contracting company? Therefore an umbrella company is a company that employs people rather than doing anything else.

Flat-6

Original Poster:

2,354 posts

200 months

Saturday 11th November 2017
quotequote all
KevinCamaroSS said:
I am a bit mystified. IIRC an umbrella company is a company that 'employs' the sub-contractors as an intermediary between the individual and the contracting company? Therefore an umbrella company is a company that employs people rather than doing anything else.
Not as such, The company exists as a legal entity, and I then get paid by it as a self-employed contractor...
It's the most tax efficient way according to my accountant.

spikeyhead

20,547 posts

227 months

Saturday 11th November 2017
quotequote all
I used to marshal at Hook Wood many years ago.

Most marshals would be regular players swapping time for paint and game time.

It really helps the enjoyment of the punters if the marshals really know what they're doing.

KevinCamaroSS

13,848 posts

310 months

Monday 13th November 2017
quotequote all
Flat-6 said:
KevinCamaroSS said:
I am a bit mystified. IIRC an umbrella company is a company that 'employs' the sub-contractors as an intermediary between the individual and the contracting company? Therefore an umbrella company is a company that employs people rather than doing anything else.
Not as such, The company exists as a legal entity, and I then get paid by it as a self-employed contractor...
It's the most tax efficient way according to my accountant.
I am not sure that would get by the IR35 rules since you only work for them.

DSLiverpool

16,532 posts

232 months

Thursday 16th November 2017
quotequote all
Ask your accountant to handle all payroll and holiday records it wont be much and will save you hassle, go one further and let them pay your staff as well (after approval).

Contract HR inc all docs customised is about £100 a month, if it saves you one tribunal its worth it

Take everyone on a 3 month probation and unless you LOVE them then extend it for another 3 months if the slightest doubt - give them monthly feedback.


ChrisPackit

274 posts

153 months

Thursday 16th November 2017
quotequote all
DSLiverpool said:
Contract HR inc all docs customised is about £100 a month, if it saves you one tribunal its worth it

Take everyone on a 3 month probation and unless you LOVE them then extend it for another 3 months if the slightest doubt - give them monthly feedback.
I would second this.

I have operated in this kind of fashion, and if it helps, I used a HR company called Inspire Excellence to handle all of the HR affairs .... http://www.inspireexcellence.co.uk/

Flat-6

Original Poster:

2,354 posts

200 months

Thursday 16th November 2017
quotequote all
ChrisPackit said:
DSLiverpool said:
Contract HR inc all docs customised is about £100 a month, if it saves you one tribunal its worth it

Take everyone on a 3 month probation and unless you LOVE them then extend it for another 3 months if the slightest doubt - give them monthly feedback.
I would second this.

I have operated in this kind of fashion, and if it helps, I used a HR company called Inspire Excellence to handle all of the HR affairs .... http://www.inspireexcellence.co.uk/
Thanks guys - This does sound like the way forwards, although £100 p/m is probably a figure for a far larger organisation than I will be (initially) - I will probably only have 3/4 people on the books.
I'll talk to my accountant about this as I have to go in some time soon to discuss my other business.

kiethton

14,663 posts

210 months

Thursday 16th November 2017
quotequote all
Re. Staff - are there any universities nearby?

They'll likely have a paintball team/club/society with people that you can approach that know what they're doing and would like the working hour profile for the flexibility & beer money offered - when I ran a leisure business, admitedly a good few years back, students were often the best source of employees as our peak periods (school holidays and weekends) coincided well with their free time.

Flat-6

Original Poster:

2,354 posts

200 months

Thursday 16th November 2017
quotequote all
kiethton said:
Re. Staff - are there any universities nearby?

They'll likely have a paintball team/club/society with people that you can approach that know what they're doing and would like the working hour profile for the flexibility & beer money offered - when I ran a leisure business, admitedly a good few years back, students were often the best source of employees as our peak periods (school holidays and weekends) coincided well with their free time.
Yes absolutely, I am right in the middle of Derby / Leicester / Loughborough / Nottingham.
Speaking to their sports society organisers is already firmly on my plan.
The down-side is of course a lot of said students may well disappear off home with no warning come summer, coinciding with my peak season.