assistant...tax...eh?

[leeanne910]

Ok would like to have an assistant...

I.know i.would need to employ her..and.pay minimum wage and have knowledge about sick maternity holidays etc....

Now....what do.i need to.do. And can i claim their wage as expense...

And.also... Little confused on what i pay in regards to national insurance and tax as an.employer and if.i claim it as expense etc...

Trying to see if i am.worse off with an assistant

[MrAnchovy]

Yes you can claim their pay and any Employer's National Insurance you have to pay as an expense. Employer's NI from April 2013 is 13.8% of everything over £144 a week, but you also have to deduct tax and NI from their pay and pay this over to HMRC after registering as an employer under PAYE.

If it is their only job and you pay them less than £107 every week (£109 from April) then no tax or NI needs to be collected or paid and you don't have to register for PAYE.

There are companies that specialise in payroll for very small employers, typically families employing nannies, who will take care of everything for less than £150 a year.

[leeanne910]

So is it jist employers NI or is there employers tax too? When do i have to pay them? Sorry for the questions..going to be doing some maths tonight (love maths lol)

[MrAnchovy]

So is it jist employers NI YES or is there employers tax too? NO When do i have to pay them? QUARTERLY IN ARREARS ON THE 19TH Sorry for the questions..going to be doing some maths tonight (love maths lol)

[leeanne910]

Thats not so bad then :) oooooooo

Thanks :) u r a star!!!! I gave myself a right headache and had a paddy about it :) cheers!!!

[leeanne910]

Ohhh one last one...:

Just to clarify.. "everything over £144 a week"

Does that mean 13.8% on EVERYTHING they earn or if they earn say £154 a week, i would pay 13.8% on the £10 over £144?

[MrAnchovy]

You would pay 13.8% on the £10 over £144 :)

[Ellen]

Hi just wondering if I employ an assistant who already has a job but doesn't

pay tax where do I stand with tax and national insurance

Thanks Ellen x

[MrAnchovy]

You will have to register for PAYE and initially you will have to deduct tax from everything you pay them. This will lead to them paying too much tax, and there are a number of ways around this which a payroll service can help you (and them) with.

[leeanne910]

Fantastic help mr A i now feel i can make a suitable decision :)

[leeanne910]

Right i am employing an assistant but its under £107.

I know i dont register for paye but what do i need to do? Do i need to register as employer anyway or do nothing?

[chriss]

just while mr. anchovy is around, what are the main things I should know regarding cm working with another cm ?

[Stapleton83]

In terms of employing an assistant the only other way you could do it is for them to be self-employed and bill you for the work they do for you then you don't have the responsibilities of holiday pay etc.

Sam x

[MrAnchovy]

Right i am employing an assistant but its under £107.

I know i dont register for paye but what do i need to do? Do i need to register as employer anyway or do nothing?

You don't have to do anything (except check you have employer's liability insurance and notify Ofsted of course) unless you pay them £107 or more, or £109 or more after April 2013.

[MrAnchovy]

In terms of employing an assistant the only other way you could do it is for them to be self-employed and bill you for the work they do for you then you don't have the responsibilities of holiday pay etc.

Sam x

HMRC will not in general accept that a childminder's assistant is self employed. You will be liable for tax and NI on top of what you have paid them and are liabile for a fine on top.

[MrAnchovy]

just while mr. anchovy is around, what are the main things I should know regarding cm working with another cm ?

You need to work out how you want to arrange this; you can either be separately self employed in which case you will have separate contracts with parents, or to work together in a partnership in which case you will contract with parents together. In either case you need to work out what you are going to do about the costs of using your home for the business. There are lots of practical issues of course which you can find helpsheets on from a number of places.

[pinklady756]

Yes you can claim their pay and any Employer's National Insurance you have to pay as an expense. Employer's NI from April 2013 is 13.8% of everything over £144 a week, but you also have to deduct tax and NI from their pay and pay this over to HMRC after registering as an employer under PAYE.

If it is their only job and you pay them less than £107 every week (£109 from April) then no tax or NI needs to be collected or paid and you don't have to register for PAYE.

There are companies that specialise in payroll for very small employers, typically families employing nannies, who will take care of everything for less than £150 a year.

If you pay 2 part-time assistants under £107 a week or £109 from April, you still don't need to register as employer or anything else do you?

[Chatterbox Childcare]

If you pay 2 part-time assistants under £107 a week or £109 from April, you still don't need to register as employer or anything else do you?

I thought as of October this year returns have to be made monthly on actual payments - I would talk to an accountant. Mine
charges £12 a month for all wages, end of year slips and returns for up to 3 people.