I am personally in the same position as your-self. About to employ and seriously thinking of doing it via the agency route but charging the cleaner instead of the customer so they are none the wiser to the tax complications and issues. I have decided to call it a management Fee to the cleaner rather than an agency fee as I will be managing the work for them IE certain paperwork. This I have decided to charge based on a Percentage of the hourly rate charged. In my case about 35% is the management fee.
Below I have listed the notes from the HMRC webpage and my personal arguments as to why the cleaner is self-employed
If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:
* Can they hire someone to do the work or engage helpers at their own expense?
YES - but only if my company employment processes are carried out ie CRB check, 2 References Quality Control
* Do they risk their own money?
YES – If the customer does not pay them then they loose the income and still have to pay the MANAGEMENT FEE.
* Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
YES – The cleaner has to pay for ALL there equipment and keep’s 100% of the equipment fee charged to customers if they do not provide there own.
* Do they agree to do a job for a fixed price regardless of how long the job may take?
Yes they get a percentage of the quote no more no less and if it takes them longer then that is out of there pocket.
* Can they decide what work to do, how and when to do the work and where to provide the services?
YES – All cleaners when taken on decide what area they wish to do and I advertise for work accordingly. They quote and decide on whether to take on the contract themselves and negotiate with the customer as to time and dates. If an agreement cannot be reached then the contracted will be OFFERED to another Cleaner.
* Do they regularly work for a number of different people?
YES – All cleaners are advised that they are free to work for other people including themselve’s and many just work on a PT basis while holding down another PT job. Some of my cleaners I am looking to employ already run small cleaning business but are short on work so SUB-Contract off of me.
* Do they have to correct unsatisfactory work in their own time and at their own expense?
YES – See point about money at risk.
This way i can charge my customer's less and pay the cleaners more while also keeping my income at an acceptable level
What do you all think?
