Reply to: Employing retired relative?

[jmo21]

Why are you doing/subbing a year long task for free?

Why do they expect you to do it as well as your main contract work (I assume?)

[northernladuk]

OP what does the client say about all this or are you just preparing a possible solution to put it to them?

[Hobosapien]

If no extra charge to client, so being covered by your contract and rate, you could just bill then as normal and agree to pay your relative off the books* out of the taxed profit, if you're just palming off this piece of work onto them and charging the client as if you did it, so subbing the work to a relative.

Much simpler than messing around with employment law and taxes, particularly when they are retired so likely drawing a pension that would then be included in their income for tax purposes.

Keep it simple.

* As long as you've paid the appropriate tax on the contract income to get it into your personal account you can gift some of it to your relative one way or another.

[northernladuk]

If it's a great rate and there's zero expenses, why should IR35 matter? As we've discussed before, a £900/day gig near home but inside is better than a £500/day outside gig that you have to stay away for.

Possibly but still worth mentioning. It matters if you have that situation and you weigh up the pros and cons and decide to discount the IR35 issue. I'm asking if the OP understands the IR35 situation enough to be able to ignore it rathe than just not know what is going on.

[LondonManc]

You realise this is very bad for IR35 or don't you care?
If it goes on for awhile it's not going to be easy cover up on the CV.

That said good opportunity to sub out which would be good for IR35.

Have they enough to do for you if your relative does it?

If it's a great rate and there's zero expenses, why should IR35 matter? As we've discussed before, a £900/day gig near home but inside is better than a £500/day outside gig that you have to stay away for.

[northernladuk]

It is crappy task, that's why they want to shift it to a contractor - no one staff wants it.
But the gig is well paying, close to home, no commute.
So I dont want to loose it.

You realise this is very bad for IR35 or don't you care?
If it goes on for awhile it's not going to be easy cover up on the CV.

That said good opportunity to sub out which would be good for IR35.

Have they enough to do for you if your relative does it?

[pscont]

It is crappy task, that's why they want to shift it to a contractor - no one staff wants it.
But the gig is well paying, close to home, no commute.
So I dont want to loose it.

[northernladuk]

Was this included in your statement of work when you signed the contract or is it a task they've asked you to undertake.

Sounds like a really crappy piece of work.

[Lance]

What’s the data? If you process data for your client, using a member of staff, you are now a data processor. If the data contains anything personal you need the clients permission (actually you need that no matter what) and a specific contract (not a contractor contract). The agency are also likely a problem if personal data is involved as you cannot have a correct contract in place with the client for data processing.

This isn’t as simple as ‘can I employ someone’. If you **** with GDPR you could have a much bigger problem.

[MrButton]

1 year to manually fix a database?

Can it not be automated?

[malvolio]

AIUI they don't pay EeNICs, but you will pay ErNICs, but I could be wrong. You will need ELI though, although that's a trivial cost.

[LondonManc]

Ask your accountant about taking them on via an FTC.
You'll have the full costs there and be able to take a call on it sooner rather than later and without guesswork and speculation from us non-accountants.

[doconline]

Could they not just invoice you as a sole trader if it is a one off piece of work and you don't require them to be a ltd?

[TheCyclingProgrammer]

No, it is not.

So stop worrying about such things.

Employment might not be the best option though, if your relative is going to have autonomy over how to do the work and won't be subject to your direction and control (beyond telling them what you need doing) and they are happy to report the income to HMRC as self-employment then that might be a much easier option.

[pscont]

It's not though, is it?

No, it is not.