[davep]

Mike how do you account for this in your books? 

[Deep Cleaning Solutions]

[Mike Halliday]

Dave I just put it down as payment for leaflet distribution I make a note of how much I pay out and to who,  then just write it on a piece of paper and stick it in my file that goes to the accountant.

It too much to fork out as cash in hand,

[dan paton]

Does that mean their responsible for their own tax etc Mike? Only asking as I'm thinking of hiring a couple myself as mine has quit and he was as the picture above . Do you give them some sort of contract?

[jim mca]

Would you not get them to invoice you as there self employed 

[davep]

That's what I'm getting at. Do you give accountant names of the delivery people?

[Mike Halliday]

Dave, No, just the amount paid out and from where. I do have the information if he asked but he never does.

They are responsible for their own tax etc but they don't tend to get above the tax threshold unless they have other work.

[creighton foyle]

 i am having leaflets printed at the moment for carpet cleaning and power washing ,how many leaflets a month do you put out and what do you pay for them ?. and of course approx how many customers per thousand.

[Deep Cleaning Solutions]

Another thing to point out is that if even if they have registered as self employed the tax man will still see it as you employing them direct. To be classed as self employed the workers have to be registered plus use there own tools, vehicles ect and NOT just work for one person, the HRMC have really tried to crack down on this to stop employers avoiding NI, sick pay ect. There are three ways of doing this. 1- employ them direct as PAYE. 2 - Pay cash in hand and take a gamble.  :-) 3- Pay them as Self employed, but you must do this properly Mike, if you where ever to be investigated the way you do it would not wash and you will be in deep ****. You need to cover your back. If you are treating them as self employed get them to sign some paperwork that they declare them selves self employed and that they are responsible for their own tax and insurance and that they do not just work solely for you and that they will use there own equipment, vehicle ect even though this may not apply to leaflet dropping. Finally they need to give you an invoice for work done, monthly will probaby do. I know this seems a bit over the top but i have seen someone investigated and something small like this nearly destroyed there business.

[wynne jones]

But if you were Vodafone they would take you to lunch. 

The other thing, which I'm sure has crossed peoples minds is getting Eastern Europeans and the like to do it. So as above if you are deemed to be their employer and they turned out to not be eu and do not have a right to work, you could get a fine that will put you out of business.

[Simon Gerrard]

If they are deemed to be self employed, then shouldn't they be giving you an invoice just like any other self employed person? They would also have to declare their earnings at some point, regardless of  how little it is, otherwise isn't that money earned in the 'black economy?'
It all sounds a little iffy to me and perhaps not something I would discuss so publicly on a forum.

Simon

[Mike Halliday]

Don't you think I'm aware of all the tax implications pointed out, I've employed leafleter for 10 yrs, I discuss this every year with my accountant, it's done properly.

But let's just try and find every problem possible to make it look dodgy

It might be better to fiddle with your websites or wait  for all your existing customers to recommend you or return..... much less effort needed and definitely less dodgy than this way of finding work.

[Simon Gerrard]

Mike,
I wasn't desperately trying to make it look dodgy. None of what you have stated is within my understanding of how to employ casual staff, or self employed people, that's all, but then I have a ruthless bookkeeper to worry about those kind of things for me.

Don't be so tetchy and wind yer neck in.

Simon

[Mike Halliday]

Sorry Simon my replies was not in response to your post in particular, more the general response to the idea.

Although I knew as I typed the topic what replies I would get, but if it's sparked an idea in someone's head then it was worth it....plus it makes CIU a more interesting read

[Simon Gerrard]

Mike,
Fair dinkum. Hope it works out for you. I hope you like long walks

Simon

[jim mca]

Mike

 Thanks for the insight on how you make leaflets work how many leaflets would you expect a Leafleter to deliver in three hours to average new build houses

Jim

[Mike Halliday]

Approx 400-500

We do it in 90min to 2 hr stints, you can't expect them to do 3 hrs in one go, they can  do  it  for a week then they'll jack it in.

We try and put a coffee break in the middle or just pick them up and move areas