Paying someone on a non-regular basis

[XLMonkey]

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

Yes, it does. This is the reason that most companies/agents won't deal with contractors who are registered self-employed: if you don't pay your tax, then HMRC can pursue them for it instead.

On the OP's question: the options are either to deduct Income tax and NI at source (so treat them as an employee, albeit one employed on hourly rate rather than a salary); or to get them to confirm that they are registered self-employed and pay them gross.

In the second option you still have the risk that you could get chased by HMRC for any unpaid tax, but it depends on how great you think that risk is (they are unlikely to chase you for a few hundred quid)

[THEPUMA]

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

no because he would evidently be self-employed.

if your subcontractor was accepted by HMRC as being self-employed, they couldn't come after you for the PAYE/NIC, unless you were deemed to be an agency, in which case they could!

[TheFaQQer]

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

No - it's only if they are deemed to be your employee. This is why agencies won't deal with sole traders, only brolly or Ltd.

[chicane]

Only thing is - if he doesn't pay his tax and NI, you become liable.

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

[TheFaQQer]

Thanks. But he hasn't got a company setup.

Shouldn't matter - you pay him, he declares it as income on his tax return.

Only thing is - if he doesn't pay his tax and NI, you become liable.

[NotAllThere]

I had two employers once - the first taxed me according to my "normal" tax code, the second on a BR code. This mean that everything from my second employment was taxed at the base rate.

NotAllThere

[Burrow01]

Morning all,

I have to pay someone through my company for the services he is providing to a client. The contract has been setup between my pvt. ltd. company and the client and he is the selected person. But the client will call him to do something only occasionally, atleast to start of with.

I am thinking of put him on my payrol. When his client clears the invoice I pay him a salary after deducting NI+PAYE which go to HMRC when I pay them my taxes each month. I shall also issue him a salary slip.

Any issues with this arrangement? Suggestions welcome.

Best regards.

If he is happy with the deductions then you could pay him via a salary, but you will need his P45/P46?

Otherwise you can just pay him the gross amount, and he will need to declare it as income on his personal tax return

Pete

Pete

[Spacecadet]

how about a brolly?

[conqurer]

Thanks. But he hasn't got a company setup.

probably a lot simpler to make him operate as an independant contractor contracting to you. You just pay him plus VAT and he can deal with the rest after that.

[Spacecadet]

probably a lot simpler to make him operate as an independant contractor contracting to you. You just pay him plus VAT and he can deal with the rest after that.

[conqurer]

Morning all,

I have to pay someone through my company for the services he is providing to a client. The contract has been setup between my pvt. ltd. company and the client and he is the selected person. But the client will call him to do something only occasionally, atleast to start of with.

I am thinking of put him on my payrol. When his client clears the invoice I pay him a salary after deducting NI+PAYE which go to HMRC when I pay them my taxes each month. I shall also issue him a salary slip.

Any issues with this arrangement? Suggestions welcome.

Best regards.