charging an employee as a ltd company - Contractor UK Bulletin Board

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Crossroads replied

2 October 2009, 12:20
Originally posted by Waria Ahmed View Post

I have created my own ltd company to sort out my pay for while I'm contracting. I had a few questions, one of them is...

If I decided to take on another contractor as an employee and charge them £10-15 to do their pay and taxes out. How does this process work? basically if I was acting as an umbrella company?

Thanks in advance

It's pretty simple. You invoice your client for services performed by your employee. You pay your employee his salary.

If you don't the answers to this, know how to calculate the payroll, then your accountant will probably charge you more (to run the payroll for a second employee) than an umbrella company would charge your "employee".

That's before you factor in the extra costs you may have to bear - insurances etc.
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Waria Ahmed started a topic charging an employee as a ltd company

29 September 2009, 20:08
charging an employee as a ltd company

I have created my own ltd company to sort out my pay for while I'm contracting. I had a few questions, one of them is...

If I decided to take on another contractor as an employee and charge them £10-15 to do their pay and taxes out. How does this process work? basically if I was acting as an umbrella company?

Thanks in advance
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