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Simply Clean UK

  • Posts: 22
PAYE or Sub-Contract staff?
« on: March 18, 2010, 02:49:19 pm »
Hi all,

i am thinking of employing some staff but cant decide how to go about it.
do i go PAYE with all the paperwork or Sub-Contract?

What are your views???

Fox

  • Posts: 824
Re: PAYE or Sub-Contract staff?
« Reply #1 on: March 18, 2010, 04:24:54 pm »
Hi

Personally I would directly employ, one you have much more control and two if you take on self employed people and you are the only person they carry out work for you could be deemed as their employer anyway and end up paying back NIC's and tax for them.  Of course you used the words sub contract which is using another company rather than individuals so am not sure if that is what you meant.

Fox

cml

  • Posts: 181
Re: PAYE or Sub-Contract staff?
« Reply #2 on: March 19, 2010, 07:43:32 pm »
Hi,

If employing self-employed contractors refer to Fox's response above however if you are talking about another company then the question here is what benefits would you hope to obtain by going down this route? 

A pitfall to avoid is 'who is in control of the works undertaken?'  If you sub-contract to an individual who is a limited company but you still control how, when and supply material for these works you could still be liable for taxes and NIC.

Hope this helps

Simply Clean UK

  • Posts: 22
Re: PAYE or Sub-Contract staff?
« Reply #3 on: March 20, 2010, 07:25:31 am »
Going down the sub-ontract route would be an individual to gain the best advantage. when and how would be negotiated be negotiated between the individual and the customer to best suit them. equipment will be supplyied also by the customer in most cases and in others then a £sir charge is added to the quote that goes directly to the individual to pay for equipment costs and upkeep. none of this money will profit my company in any way.

do you guys think that this would satisfy who it needs to??

paying this way enables for less of the employiee/employer constraints such as PAYE, Holiday, Sick, Maternity ect.. so more profit can be made and more can be paid to the individual doing the work. i understand that this is all a grey area and in the end i sdecided upon by a judge. starting a small business is no easy in any way shape or form.

What do you think about all this??

cml

  • Posts: 181
Re: PAYE or Sub-Contract staff? New
« Reply #4 on: March 20, 2010, 08:06:10 am »
Hi,

1.  Are your therefore operating like an agency or brokerage hoping to obtain an introductory fee? 

2.  What market are your operating in Domestic or Commercial? 

3.  No profit is made by your company yet your say more profits are made this way and more paid to the contractor.  Who is billing or providing the quotations?  please clarify what you mean.

4.  Do you also run a cleaning business or other i.e. what is or would be your company? 

I do apologise if I misinterpret what you are asking or suggesting.