[Michelle F]

I recently started a domestic cleaning business with the intention of filling a couple of days a week. It is going better than I ever expected and am now in a position where I am going to have to start turning away any more prospective clients as I do not have the time slots available for them.

I have been researching taking on another person and cannot find a solution.

At the moment I could probably pass on around 5 hrs work to someone which doesn't sound much but would be ideal for someone wanting something to fit around their kids. I cannot go through everything that is required to employ someone just for 5 hrs work, although I appreciate it may be that more work would come in and their hours would increase.

I've looked at taking someone who is self employed and would deal with their own tax returns but according to HMRC if I tell someone where/when to work and am paying them an hrly rate (which I would, I would pay them less than I charge the client and keep the difference) then they would actually be classed as employed.

If I took on a sub contractor, then I don't see how I would get to keep any of the hourly rate and they could take my clients.

How does Molly Maids, etc work? They're always advertising for self employed cleaners but if they're telling them where/when to work then I don't understand how they can class them as such.

Thanks

[suffolkclean]

I was going to email you but its hidden

[Michelle F]

Ah, I'll see if I can 'unhide' it. Would appreciate your thoughts. Have spent a lot of time recently trying to get this all sorted out.  Been in touch with CRB/Disclosure Scotland, HSE, solicitor's to get quotes for subcontractor contracts and client contracts. Have also been helped out by someone I know of who has bought a domestic cleaning franchise. If there's anything more you can add, it would be appreciated.
Thanks

[A Foster]

I would be interested to know any thoughts as well, rather than just emailing the original poster, could anyone post their thoughts here.

Thanks.

[daniel osmore]

If you want to expand your business and you have regular contract work, there should be no reason why you simply cannot employ someone to do the work. Any bookkeeper or accountant can help you to setup a straightforward payroll system. Most people do not want the hassle of having to submit a tax return and would rather be PAYE employed. Whilst it is true that a lot of cleaning firms do use self-employed subcontractors, many of them only do it as a tax (and employment legislation) dodge. If you do this, there is always a danger that HMRC will not accept the self-employed status of your cleaners and send you a massive tax bill, possibly going back years, which could ruin your business. In general, if you have regular contract work and you tell the cleaners what to do and when and possibly supply equipment and uniform - it might be difficult to argue that they are self-employed. Some firms get around this by basically operating as an agency; they don't pay the cleaners directly - the client pays the cleaners and a separate ongoing fee to the agency for finding the cleaner.

The situation might be different if you undertake a lot of one-off deep cleans and subcontract the whole job to an independent cleaner - this is a very common practice. You should get professional advice based on your own situation and circumstances, but in general, if you want to build a proper bona fide business - employing staff is the best way to go.

[johnny bravo]

employ someone on a self employed basis,   let them sort paper work and taxes etc out themselves, get them to get a enhanced crb check

[daniel osmore]

employ someone on a self employed basis,   let them sort paper work and taxes etc out themselves, get them to get a enhanced crb check

I think Michelle was worried that there might be some comeback from HMRC if she used a subcontractor. If you subcontract someone and treat them like an employee in all but name, HMRC might eventually reject their self-employed status - this can and does happen. This would be even more likely if the subcontractor hasn't been submitting tax returns and paying any taxes due.