Reply to: Putting an employee through your Ltd

[Epiphone]

It's really not worth the hassle. A brolly will cost him £100 or thereabouts and leave you well away from any potential comebacks.

[cuteadder]

Umbrella companies can setup within hours, just give him a good one and leave it at that. Give him the name of the one you used on your first contract...

Or look through a few on the internet for him...

[simes]

God no, not worth it.

Wouldn't bother unless you want to go this route with many contractors going through your company, in which case then you will be very quickly set up for the long haul.

Who's to say it will only last five weeks?

[Sausage Surprise]

There is no such thing.

Employers liability insurance comvers an employer against claims by employees.

Public Liability covers claims from members of the public.

Professional Indemnity insurance covers claims from clients.


HTH

After I posted I did wonder - don't know why I thought there was

[Archangel]

Yes I do but would I need employee's liability insurance?

There is no such thing.

Employers liability insurance comvers an employer against claims by employees.

Public Liability covers claims from members of the public.

Professional Indemnity insurance covers claims from clients.


HTH

[Sausage Surprise]

What happens if he gets very ill in week 1, are you going to pay him sick pay? Do the work for him? Find a sub? Get sued by the client//agency?


Do you have employers liability insurance?

Can you be bothered to operate the extra PAYE?

Just tell him to go to a brolly.

Yes I do but would I need employee's liability insurance?

[Ardesco]

Couldn't:
YourCo sign the 5 week contract with ClientCo/Pimp
YourCo invoice ClientCo/Pimp
ClientCo/Pimp pay YourCo
Your Mate Invoice YourCo
You Pay YourMate
Sorted.... No PAYE, No NI, No hasstle (for you) and (arguably) good for IR35.

That would make his mate self employed which means that SS is liable for tax on all the earning paid to his mate if his mate doesn't pay his taxes since SS's company was the lastcorporate entity the money went through.

That's why agencys won't deal with self employed people, only LTD co's and umbrellas

[Drewster]

Couldn't:
YourCo sign the 5 week contract with ClientCo/Pimp
YourCo invoice ClientCo/Pimp
ClientCo/Pimp pay YourCo
Your Mate Invoice YourCo
You Pay YourMate
Sorted.... No PAYE, No NI, No hasstle (for you) and (arguably) good for IR35.

[jmo21]

How much will it make you? Is it really worth the hassle and potential downside?

I dont like mixing business and pleasure.

Totally agree, it's not worth it.

[krytonsheep]

For 5 weeks, I'd tell him to go with a brolly. Messing around with P45's, expenses and employers liability insurance for the sake of a few quid isn't worth it.

[BrilloPad]

How much will it make you? Is it really worth the hassle and potential downside?

I dont like mixing business and pleasure.

[Archangel]

What happens if he gets very ill in week 1, are you going to pay him sick pay? Do the work for him? Find a sub? Get sued by the client//agency?


Do you have employers liability insurance?

Can you be bothered to operate the extra PAYE?

Just tell him to go to a brolly.

[dmini]

A friend of mine did do this for me when I did contracting first - I had been badly stung through P4 previously - and this new contract was initially for a week, as I remember. Ended up for about 6 weeks or so, till I found a good brolly.
No tears - all went smoothly. Probably less acceptable now to a lot of agencies though than it was 5 years ago.
Its two way though - I have since passed him a contract which has generated a huge amount of ongoing work since that point

[Grinder]

Its all about being on company business. I was an employee until middle of last year, and the company insisted having filed copies of my insurance certificate (showing that business use was included), last service invoice & MOT (to prove the car was roadworthy).

Basically anything you do during work hours, the employer is liable for.

I forgot to mention sick pay - you'd be liable for that too.

[Sausage Surprise]

Turnover limit is £225,000 ongoing - will the 5 week contract push you over this? If you drop back the following year you can remain within the scheme.

I'd be worried about the other aspects - you'd be responsible for your mate's activities during conduct of his work. For example, if he kills someone driving to site, you would be liable. This is an extreme case - there are all sorts of rules like working hours, health & safety, redundancy, maternity, etc..

Are you sure? Why would an employer be liable for an employee's driving?