I have had several sub contractors overs the years doing work for me, recently its became clear I have 1 or 2 who would like to come on board as employees, if I keep using them then HMRC are going to force me to employ them which is fair enough, I am aware I will be liable for their tax (I already pay their cis tax), national insurance and pension fund. however at the moment I pay them £500 per week after deductions (fitters rate) however HMRC rules state I need to give them 5.6 weeks holiday pay per man, this would absolutely cripple me. I have spoken with fitters and they aint keen to drop down to 4-450 per week even though it would mean 5.6 weeks holiday per year? (they dont think like that and neither did I when employed) despite them actually being paid more for actual days worked, is there a way around this? it just doesn't seem right and I feel I am trying to do the right thing here and provide at least two families with full time work rather than ad hoc work but 5.6 weeks is killing me! not to mention the fact that I can't have 2 teams off for that length of time? do any other guys get around this another way? also what happens if rained off?
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The 5.6 weeks can include bank holidays.
Having two teams off at the same time is something you, as the employer, has to manage. That's why people have to request leave and the manager says yes or no according to business needs.
Don't forget that having employees also means other costs may go up - you'll have to stand up a pension scheme, for example, and they may not choose to opt out...
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