Employees and tax?..............

[suffolkspark]

@HappyHippyDad I'm glad you asked this question as for very similar reasons I'm in exactly the same boat.


I got similar advice and looked into it. I think you are right about the 1k limit, but it looks like you are technically supposed get an exemption approved. What I don't know yet is if this is a one-off phone call or if an exemption is required for each and every contract!

Source: What you must do as a Construction Industry Scheme (CIS) contractor - https://www.gov.uk/what-you-must-do-as-a-cis-contractor/who-is-covered-by-cis
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Interesting, the line about exemption wasnt there when i last looked into this on the .gov pages less than a year ago, wonder if lots of people are doing it

 

[Gavin John Hyde]

If taking him on via paye then you should explore the employment allowance which even if he does just one weeks work could open up a nice PAYE employers NI saving for the company.
CIS is a pain but tread carefully as a builder I did work for locally refused to deduct CIS and is now being investigated. for years they never deducted a penny from any trades for CIS and its come back to bite in the backside in a big way. so much so they now have set up a new ltd company with very simialr name and worried. At moment as long as they co-operate it stays civil but if they refuse to talk or provide documents on request it can go criminal... I am in the clear as i registered and applied reverse charge vat to all my invoices to the builder.
Pension is a minefield. he has rights if an employee and has to opt out. you as employer must enrol him if over a certain age - think its 21/22?

 

[PeakSteve]

I have injured my back and I feel it is only going to get worse over the years. My plan is to get a lad to help out 2 days a week.

I'll be putting it through the books, but I was wondering if it is very straight forward when you are filling out your tax return. I have simple accounts as I am a sole trader. Is it as simple as putting the amount you have paid him in the correct box?

Do I have to pay him a pension?

Basically what are the factors i need to think about if I have a chap helping me 2 days a week and I plan do it all legit, i.e through the books?

Make sure you have him covered on your insurance. Talk to your insurers. Also talk to your accountant.
You have my sympathies, from experience of a bad back. (Also, find a good Chiropractor, or similar - the cost is worth it if it keeps you moving.)