Employer / employee advice needed Post Reply

[walesdavies]

Hi All I need your help:
I run my own business based at home & am about to employ a girl on an ad hoc basis (will roughly work out at as at least one day a week). She is 25 & is self employed herself. Anything I need to be aware of? What about contracts, payments etc- anything to protect myself (& her). Literally, ANYTHING that may be good to know, links, info, ANYTHING!
Thank you in advance,
Rhiannon
http://www.biscuittree.co.uk

[Mrs Contractor Mum]

Make sure your insurances are up to date. That includes professional indemnity which should cover you for employees. I go via Hiscox who are excellent at advising.

Also, if the work is being done on an adhoc basis, its best to set up an invoicing system whereby she invoices you the time she has worked and you pay her based on the time. I assume you have agreed a payment rate per hour? Also, have a separate system for expenses that she may incur.

A contract is a must. It doesn't have to be too complex but it should state the tasks you expect her to carry out, how she should invoice you and when you will pay her on receipt of her invoice. Do you have an end date in mind for how long you will need her for? If so, put it in the contract along with any notice period from both sides. Also, do check she is properly set up with HMRC as a self employed person and will be submitting her earnings correctly and paying her National Insurance.

I'm assuming as you have your own business, you might have an accountant? He/ She should be able to advise on your responsibilities of expending your business to include adhoc staff.

Good luck with the business.

[walesdavies]

Thank you so much- very helpful indeed.
Have PMd you.
KInd regards,
Rhiannon
http://www.biscuittree.co.uk

[PalmerPhotography]

The easiest thing for you is probably to hire her as a freelancer/contractor, as that way you are not liable for the taxes, NI, sickness benefits, maternity benefits, etc that come with her being an employee. I had a similar situation, when I was pregnant, with the company I had been working for as a freelance photographer realising that if they hired me as an office employee, even in a temporary position for the duration of my pregnancy, that I would be eligible for maternity pay, which they weren't keen on (shucks, almost got away with that!). Instead they paid me a slightly higher hourly rate to cover NI/tax & I stayed self employed. I don't think we even had a contract as such, I just had a weekly time sheet which was signed off by a manager and I would invoice them for the work done. It depends whether you want to include stipulations about notice periods, holidays, sickness, etc, but you could have a fairly informal agreement if it works for you. Insurance is probably the only thing you need to worry about, which you probably have anyway?
Good luck & good to see your empire growing! x