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Pete Thompson

  • Posts: 960
Re: Taking on a worker
« Reply #20 on: July 10, 2022, 12:25:24 am »
I should add that although what I’ve said above may sound like it is difficult, you have to think about your own business and what you want in the future.

If you rule out employing someone, then you are accepting that your business will only turnover the amount of work that you personally can do.

Nothing wrong with that, a 1 man window cleaning operation can do very well, but it is, of course, limited.

Plus, the entire business (and it’s income) is dependent on you and your ability to do a physical job. What if you get sick with a long-term illness?

For me, I wanted to build some resilience in the business so everything wasn’t reliant on just me and my physical ability. I’ve been lucky so far, I’ve enjoyed good health, but that may not always be the case.

I also wanted to continue growing, and I was at the limit of what I personally could do. So, the way I saw it, there was really no alternative, I had to start employing, so I knew I just had to get to grips with the procedures however tedious and time-consuming they were.

The paperwork side of things is annoying (and somewhat expensive once you start paying an accountant to run payroll for you) but it isn’t an insurmountable obstacle. You just have to learn what it is you’re supposed to do and then make sure you do it.

By far the most difficult part is finding a good employee to begin with. Once you’ve done that, that’s 90% of the battle.

zesty

  • Posts: 2452
Re: Taking on a worker
« Reply #21 on: July 10, 2022, 07:10:14 am »
???
What like untraceable bank transfers 🙄🙄🙄

If you want to employ just do it correctly

Darran

I think he means withdrawing cash and paying the bloke that way…


My problem with employing has always been getting the work to pay them.

Taking on a first employee means instantly needing £25k a year extra work to pay them, then you build on that for profit, but getting that amount of work very quickly seems difficult?

I’ve stuck with a sub contractor for the time being, he helps on bigger jobs.

I’m one that will want to employ in the next few years, but getting the extra work in quick enough to pay an employee a good wage seems difficult…

Let’s say a single man is doing £50k a year, he wants to employ, he then needs £75k a year (or whatever he’s paying the bloke) how are you supposed to come up with £25k of work overnight? Or do you take the hit for a few years and build up slowly?

It’s always been a dilemma for me, I enjoy my wage from window cleaning, but I know when im in my 50’s I’ll probably want to slow down and have someone else or two doing the graft.

Stoots

  • Posts: 6211
Re: Taking on a worker
« Reply #22 on: July 10, 2022, 07:39:12 am »
???
What like untraceable bank transfers 🙄🙄🙄

If you want to employ just do it correctly

Darran

I think he means withdrawing cash and paying the bloke that way…


My problem with employing has always been getting the work to pay them.

Taking on a first employee means instantly needing £25k a year extra work to pay them, then you build on that for profit, but getting that amount of work very quickly seems difficult?

I’ve stuck with a sub contractor for the time being, he helps on bigger jobs.

I’m one that will want to employ in the next few years, but getting the extra work in quick enough to pay an employee a good wage seems difficult…

Let’s say a single man is doing £50k a year, he wants to employ, he then needs £75k a year (or whatever he’s paying the bloke) how are you supposed to come up with £25k of work overnight? Or do you take the hit for a few years and build up slowly?

It’s always been a dilemma for me, I enjoy my wage from window cleaning, but I know when im in my 50’s I’ll probably want to slow down and have someone else or two doing the graft.

Get more work than you need and be behind a lot.

I have a bout 70k a year of work on a 4/8 werkly but I will only realistically do 45k of it because I dont want to work 5 days a week or do long hours....which means of course I'm always running a week or so behind at all times if not 2.

So I could afford to employ someone full time tomorrow and not take much hit and all and in an ideal world that's what I would ultimately like to do but finding someone is such a nightmare I keep putting it off.

The other way of course is to employ someone 2 or 3 days then build and work your way up to a full timer.

You could of course just take the hit for a few months if you have a sound marketting plan to build the extra work quickly.

Personally I think you could have 1 full time employee, stay below vat and just do a day or 2 a week yourself and live a comfortable easy life the only future issue I see is if inflation keeps going the way it has and the VAT threshold doesn't increase profit margins are going to be squeezed ultimately forcing you into VAT registration or going back solo.

zesty

  • Posts: 2452
Re: Taking on a worker
« Reply #23 on: July 10, 2022, 08:31:59 am »
You did seem to suddenly get a lot of extra work at one point Adam…

I don’t do any canvassing or seeking new work at the moment, the website drip feeds new work to me.

Gotta be honest, at this stage in my life, I’m not too fussed about employing, but I will defo be considering it in the next decade. My plan is to be doing soft washing and pressure washing only 3-4 days a week whilst an employee does all the window cleaning…

Obviously the above would be more seasonal for me, but I’d be happy with more time off in the winter, just pottering around doing some windows cleaning or working on my house.

Smudger

  • Posts: 13438
Re: Taking on a worker
« Reply #24 on: July 10, 2022, 08:49:57 am »
It’s risk and reward - yes you will take a bit short term, while training and getting the employee up to speed once their YOU need to put a shift in for more work - you will have time to do this as your workload is now very light

Many on here go on about the cost and what money they may”lose” by having employees - yes you no longer have 100% of the money - but you get 100% of what you do + 66% of your employees efforts (disregarding tax etc..)

You take on larger and hopefully better work your seen out everywhere more people ring up to use you before long you need the next employee - repeat process

Health should be a concideration for all esp. over 40’s - you just never know what’s in store for you and with employees the buisness keeps going even when you can’t even clean glass anymore

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Ian sanderson

  • Posts: 11
Re: Taking on a worker
« Reply #25 on: July 13, 2022, 12:16:43 pm »
Sorry to hijack the thread but I have similar issue with work/worker.

Currently working insane amounts myself, and have one full time employee on £27.5K as PAYE with bonus and pension etc. everything is smooth and I do the payroll and paperwork myself, dead easy using quickbooks and patching in my accountant so they have less work to deal with. Business turns over literally just under VAT. Could easily surpass it by £10k but holding back.

I’ve just increased my prices by 10-20% commercial and domestic. 3 small jobs dropped off, the others were cool and actually waiting for it to go up as it’s been 5-15 years with no change in price. However, my domestic work, I can’t charge another 20% within the year of increasing my prices.

We have 2/3 commercial vehicles capable to keep 5 people working- excessive I know, but ones my own run around, and I just bought a new vehicle to upgrade the older one but I’ll keep the older one for my 3rd person.

Problem I’m having… I will reach VAT with 3rd person and make no profit. literally his wage, accounts and PAYE/pension and VAT will be a huge setback to be honest and barely cover itself. Im hitting the ceiling of turnover - any advice to move forwards?

I have to slow down myself as paperwork is sliding and jobs being put off so I need number 3. Is it best to get number 3 in ASAP and expand quickly to number 4 worker to recover the profits?
Are people paying around 27.5K wages? Will that bring me a competent person or just time wasters?

Ascjim

  • Posts: 220
Re: Taking on a worker
« Reply #26 on: July 13, 2022, 03:25:31 pm »
You charge the VAT to the customers, so your profit will stay the same.

Also, I hit VAT with only 2 workers.

Ian sanderson

  • Posts: 11
Re: Taking on a worker
« Reply #27 on: July 13, 2022, 06:26:57 pm »
You charge the VAT to the customers, so your profit will stay the same.

Also, I hit VAT with only 2 workers.

Yeah I am fully aware that’s how VAT works but as I mentioned before, after already increasing the prices in May, I think I would lose a vast amount of clients  in charging VAT additionally, so my option is really that I have to “absorb” the VAT myself

Smudger

  • Posts: 13438
Re: Taking on a worker
« Reply #28 on: July 13, 2022, 08:32:07 pm »
For what its worth......

unless its changed your first year VAT can be at 11%

All commercial you just add 20% to the invoice - it makes no difference to them that offsets some of the vat you don't want to charge to domestic customers

Remember its based on the last 12 rolling months so for example last July to this July  - has we reached the limit we gave it a major push to get in more commercial

once VAT our windows stayed the same but all bespoke works were added at 20% - this covered nearly all the regular window domestic work

then when the next rise was due they all went up the 20%

Same as employing you may have to suck it up short term - but you will be able to claim VAT back on those vans and other equipment  ;D



Darran



Never argue with an idiot, they will only bring you down to their level, and beat you with experience

James Styles

  • Posts: 377
Re: Taking on a worker
« Reply #29 on: October 07, 2022, 08:17:26 pm »
Another question in relation to this, I have someone who I may take on next year when the rounds bit bigger, he is family member & trustworthy.
Can I take him on but as self employed, not employee him? Even if he’s only earnings would be through me?
Will be a bit too much to financially to employ as you have sick pay, holiday, pension etc etc. my round isn’t that established yet.
If I can do it that way would he register as a sole trader or something else? As he is not owner of business. He is ok with just being self employed and working for me but not sure if you can do it that way? 
I seen mentioned in previous posts about taking on self employed worker but then I’ve read if the only work they do is through you that you need to employ them properly?
Seems so complicated.


Smudger

  • Posts: 13438
Re: Taking on a worker
« Reply #30 on: October 07, 2022, 08:25:21 pm »
No - but not m sure many do they really need other income or at least own van etc.

Your still looking for shortcuts - I don’t think your ready for the next step

Having family in th biz can bring lots of problems

Never argue with an idiot, they will only bring you down to their level, and beat you with experience

DJW

  • Posts: 1008
Re: Taking on a worker
« Reply #31 on: October 07, 2022, 08:27:49 pm »
I’m going to the Maldives.

Splash & dash

  • Posts: 4364
Re: Taking on a worker
« Reply #32 on: October 07, 2022, 08:39:04 pm »
Another question in relation to this, I have someone who I may take on next year when the rounds bit bigger, he is family member & trustworthy.
Can I take him on but as self employed, not employee him? Even if he’s only earnings would be through me?
Will be a bit too much to financially to employ as you have sick pay, holiday, pension etc etc. my round isn’t that established yet.
If I can do it that way would he register as a sole trader or something else? As he is not owner of business. He is ok with just being self employed and working for me but not sure if you can do it that way? 
I seen mentioned in previous posts about taking on self employed worker but then I’ve read if the only work they do is through you that you need to employ them properly?
Seems so complicated.


You have asked the same question on the other forum as well , are you hoping for a different response on hear ?

James Styles

  • Posts: 377
Re: Taking on a worker
« Reply #33 on: October 07, 2022, 08:50:22 pm »
Another question in relation to this, I have someone who I may take on next year when the rounds bit bigger, he is family member & trustworthy.
Can I take him on but as self employed, not employee him? Even if he’s only earnings would be through me?
Will be a bit too much to financially to employ as you have sick pay, holiday, pension etc etc. my round isn’t that established yet.
If I can do it that way would he register as a sole trader or something else? As he is not owner of business. He is ok with just being self employed and working for me but not sure if you can do it that way? 
I seen mentioned in previous posts about taking on self employed worker but then I’ve read if the only work they do is through you that you need to employ them properly?
Seems so complicated.


You have asked the same question on the other forum as well , are you hoping for a different response on hear ?
Wasn’t sure if answer I got is correct is why I also asked on here

Splash & dash

  • Posts: 4364
Re: Taking on a worker
« Reply #34 on: October 07, 2022, 08:54:57 pm »
Another question in relation to this, I have someone who I may take on next year when the rounds bit bigger, he is family member & trustworthy.
Can I take him on but as self employed, not employee him? Even if he’s only earnings would be through me?
Will be a bit too much to financially to employ as you have sick pay, holiday, pension etc etc. my round isn’t that established yet.
If I can do it that way would he register as a sole trader or something else? As he is not owner of business. He is ok with just being self employed and working for me but not sure if you can do it that way? 
I seen mentioned in previous posts about taking on self employed worker but then I’ve read if the only work they do is through you that you need to employ them properly?
Seems so complicated.


You have asked the same question on the other forum as well , are you hoping for a different response on hear ?
Wasn’t sure if answer I got is correct is why I also asked on here

😂😂😂 for  the best advice on this subject you would be better off asking your accountant or HMRC if you act on  advice from windows cleaners it is you that will be the one in the soup not the one who has  given the advice , some on the forums are very knowledgeable but others haven’t got a clue .

NWH

  • Posts: 16952
Re: Taking on a worker
« Reply #35 on: October 07, 2022, 08:59:49 pm »
Went down this route 6 months ago I could have done either option the best option is to do it properly fully employ rain or shine they get paid,off sick they get paid 4 weeks and bank holidays they get paid done it before the cheap and wrong way and it never works.
You need capital to do it the right way imo if you don’t even have enough work to be able to pay someone without worrying you’re not ready,just my opinion.

James Styles

  • Posts: 377
Re: Taking on a worker
« Reply #36 on: October 07, 2022, 11:12:30 pm »
Thanks guys, I am going to leave it, something can reconsider in future when rounds alot bigger but tbh I’ll probably stick to working alone, simpler lol.