Taking on Staff

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

fzbucks replied

15 June 2007, 11:29
Oraclesmith advised about the contract template already - www.fsb.org.uk

they provide legal advice/insurance and services for small businesses
Leave a comment:
TheFaQQer replied

15 June 2007, 11:25
Originally posted by Cooperinliverp00l

he is thinking of using umbrella company and i am on FRS. So if i allow him to basically use my company as the umbrella co then i assume i pocket the extra FRS from his invoices, build up a good brand and turnover for ltd co.

Would he have to be clased as Director (with no shares) or just as an employee ? where can i get hold of decent employee contract ? PCG ?

advise so far has been great Thanks

No - he's an employee, not a director.

I'm not sure where you can get a contract of employment from - there are probably some templates out there on the web that you can use.
Leave a comment:
andyg replied

15 June 2007, 10:42
Taking on Staff

Why not let him work through his own ltd company, you have the contract with the client (or agency) so you cream a bit off the top, he invoices you. I do this and it works fine. Also, having a few different companies as money coming helps with IR35.
Leave a comment:
Cooperinliverp00l replied

15 June 2007, 09:46
he is thinking of using umbrella company and i am on FRS. So if i allow him to basically use my company as the umbrella co then i assume i pocket the extra FRS from his invoices, build up a good brand and turnover for ltd co.

Would he have to be clased as Director (with no shares) or just as an employee ? where can i get hold of decent employee contract ? PCG ?

advise so far has been great Thanks
Leave a comment:
oraclesmith replied

14 June 2007, 13:30
If you're thinking about taking on staff (even if they are mates), then I would recommend you join the FSB for about £100 a year. They offer lots of free legal support for small employers who take on staff.

I'm a member and although I don't need many of their services, I am aware that lots of small businesses just blunder into taking on staff and get into serious legal trouble later on when things turn nasty.

I agree that you should never give out shares unless you really have to.
Leave a comment:
TheFaQQer replied

14 June 2007, 13:28
Take him on as an employee, if he's looking at using an umbrella - essentially, you become the umbrella for him.

Won't make any difference for IR35, which is assessed on a contract by contract basis.
Leave a comment:
Sockpuppet replied

14 June 2007, 11:05
If you are on the FRS then take him on as staff with a cast iron contract that says (if you are not working your not getting paid....no sick pay etc etc).

Then pay him using PAYE. This should get you some income from the FRS!

Do NOT make him an equal partner.
Leave a comment:
Cooperinliverp00l started a topic Taking on Staff

14 June 2007, 10:50
Taking on Staff

Fellow Contractors i require your advice.

I have a ltd company and i'm at a gig i have done before. Sadly it is within IR35 so i pay the full wac to taxman. (i'm over it now though)

They are recruiting an i'm recommending a friend of mine who is a permie at the moment and would be going contracting for the first time. My question is should i let him trade under my ltd co name ? should i make him equal partner or take him on as staff ? and pay him salary. Would having multiple people working for the ltd co on the same site make me outside of ir35 ?

or should i just simply say get your own ltd / umbrella cause i won't touch you with a barge pole ?

p.s this is all going to happen in the next 4 weeks
Tags: None