adding an employee part time

[kilty55]

wondered if you guys /gals couyld help me on this one

my partner currently works part time in the care sector and the shifts do not suit us with the kids

im expecting to be taking on much more work with the plastering under my belt this year so if i paid the wife a weekly part time wage which equalled her wage at her work what would i have to do/change to my current setup as im a sole trader

if i have an employee who was doing paperwprk and typing up quotes etc do i need anything in place paperwork wise and health and safety wise ?

any advice appreciated

 

[Aston]

if i were you jaime i wouldnt do what your suggesting until the plastering work is coming in you can plaster to a good standard.
your wife has a job and a guranteed wage even if the hours are not what you like and that is a nice position to be in, in this current climate.

i know your ambitious and its the only way to get on but, id give it another 6 months to a year and then make the employment changes if i were you.


ed

 

[Deleted member 9966]

as a parent, your partner is entitled to request working hours that suit more under the flexible working regulations. try that avenue first, and then as you build up your plastering business alongside your tiling business, she can join you when you've got plenty of work on.

 

[kilty55]

thanks peeps,i have 8 plastering jobs booked in ,i had them booked i before the course but will take on board what your sayiing about the climate,i do have some concerns what this year might and might not bring myself

so when i do go to do it at a later date what do i have to change or do to make my partner an emplyee? do i need to be ltd to do this

 

[Ian]

I'm pretty sure she could go self employed and you could subbie work out to her, that might be one option instead of employing her and having to change insurances etc. Not 100% sure if this would work, I'm sure someone will put me right if I'm not! (You won't have to pay her holiday wages if she is self employed!!!)

 

[Deleted member 9966]

maybe drop Grumpygrouter a message Jamie. he's an accountant, and I'm sure he'll be able to tell you the accounting implications.

 

[Aston]

you dont have to be a limited company to have an employee.

if i were you, id call you local inland revenue and they'll send you out all the relevant paperwork/ advice

i'd also ring your/a local accountant to establish which would be the most beneficial way in which to employ your wife. ie tax relief etc

 

[Stewart]

If possible it's always a good idea to employ a spouse, even of it's just for the tax benefits. You can stay as a sole trader and it might even be beneficial to do it while she has her other part time job too. Speak to your accountant and he'll keep you right.

 

[Alberta Stone]

I have had employees in the past and will never do it again.
This is why.
Paperwork and gov't payments, etc, etc, etc, ad nauseum.
It is far cheaper to establish someone as a registered business entity, such as a limited company or an incorporation and then any business relationship you have with them is straight pay with no paperwork or other issues.
They look after their own books and taxes and you don't have to for them and withhold their money they worked for.
And they can enjoy the many corporate loopholes to keep the money in their pockets working for them.
Better to do it that way or work with people who already are set up that way.
Forget being a "sole proprietor" as that is the worst method to employ.
Incorporate your business entity and let it carry the numbers around, it is your strawman that you then use to interface with everything.
In Canada we have a tax, GST it is called like the VAT. And it has a threshold of $30,000.
So if I wish to give a person a break I can waive the GST on a small job and get paid directly as it isn't run through my incorporated entity, which they appreciate, and I am breaking no laws and do not have to report it as GST taxable provided it stays under the threshold for that year.
If I was a sole proprietor I could never do this for anything.

 

[grumpygrouter]

If you employ your wife Jamie you will be ensnared with all the legislation that goes with it, including holiday, SMP, employee liability insurance, health and safety and the like. Have you considered going into partnership with her? This also has it's drawbacks but could be a simpler way for you?

 

[kilty55]

partnership you say ,,,with the missus i shall pass on that one lolol

but thanks for the advice russ great as always

 

[grumpygrouter]

partnership you say ,,,with the missus i shall pass on that one lolol

but thanks for the advice russ great as always

LOL, anytime.