Taking on an employee

[LouC]

Thanks

Cheers everyone for your replies

[blacjac]

No. It'll mean she has to do a self assessment tax return (afaik).

It can make a difference possibly under S660 if you own that company but thats another argument altogether - there are lots of threads on that and artic systems.

According to our accountant this is only if she goes into the upper threashold. My wife is in a similar situation and currently does SA as she has done some freelance work in the past.
Our accountant says that once she has finished declaring all her freelance work, she can de-resgister from self assesment as she will be earning PAYE with about 10k of dividends PA, which will take her nowhere near 40%

[Sockpuppet]

We've just realised that she is still a shareholder in another company and will be paid dividends while she's my employee

Does anyone know how this will affect things?

No. It'll mean she has to do a self assessment tax return (afaik).

It can make a difference possibly under S660 if you own that company but thats another argument altogether - there are lots of threads on that and artic systems.

[LouC]

Another question

Thanks for that everyone. Will look at the HMRC manual.

One other quick question:

We've just realised that she is still a shareholder in another company and will be paid dividends while she's my employee

Does anyone know how this will affect things?

Thanks
Lou

[chris79]

Yes she submits either P45, or P46 if she doesn't have one which is sent to HMRC, you add her to your payroll software and pay her a wage and give her a wage slip. This should all be explained in the Employers handbook pack provided from HMRC, probably best place to start would be their website if you don't have the pack, it contains all the guidance you need as well as forms such as P46 etc.

Probably a contract of employment would be a good idea too, and checking you have the right insurances such as employers liability insurance.

[blacjac]

We took on a part time admin asistant. Accountant sorted it all out for us, we just sent them her P45 and they started sending us her wage slips.

[Bluebird]

she needs to be registered as employee with HMRC I would guess - try their website for "guide for employers"

[LouC]

Hi there everyone,

I want to employ my wife as a book keeper. Can anyone advise on what steps I need to take to do this?

Sorry for the general question, but I don't know where to start with this.

Many thanks
Lou