Even if you work self-employed, there may come a point when you need more formal assistance in your business – for example to produce a large commission – but not to such an extent that you can keep a full time worker fully occupied.
There are a few options available to you:
- enlist the help of a part-time employee or
- engage casual workers on an ad hoc basis
To take on an employee, your business will need to have a Pay As You Earn (PAYE) Scheme in place. The Employer section of the HM Revenue & Custom’s website has some useful guidance notes on the subject. Speak to HMRC or an accountant for further assistance.
Before you consider using casual workers on ad hoc basis, you should assure yourself that the work can be legally done by a self-employed person rather than an ‘employee’ who works flexible or small number of hours for the business. Do not assume that if your worker is registered as self employed then the work that s/he does it for you will automatically be considered as freelance work and s/he will be responsible for his/her own tax and national insurance. Use the ‘Employment Status Indicator’ tool to be sure of your position.
Apart from worrying about tax and National Insurance when you employ staff or casual workers, you should also arrange for adequate employer’s liability insurance cover for them.
© Anna Bulmer 2012
The article is for information only, and not for the purpose of providing accounting and taxation advice. Readers should consult an accountant for accounting and taxation advice on specific matters.