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James Styles

  • Posts: 377
Taking on a worker
« on: July 05, 2022, 01:42:20 pm »
For anyone who has employed a worker, how does it work I obviously wouldn’t be a sole trader anymore, what if I wanted to pay a percentage of the amount of work we do each day instead of a fixed wage?

Stoots

  • Posts: 6211
Re: Taking on a worker
« Reply #1 on: July 05, 2022, 03:01:03 pm »
Why wouldn't you be a sole trader ?

A percentage is fine as long as it meets minimum wage.

It's a ball ache I'll tell you that.

That said I'm looking for one myself atm , had 2 lads on trial days last 2 weeks.

One I offered one a months trial...he accepted then text me on the first morning saying he was sick 😄

Enjoy.

Arnold Palmer

  • Posts: 20777
Re: Taking on a worker
« Reply #2 on: July 05, 2022, 03:01:55 pm »
For anyone who has employed a worker, how does it work I obviously wouldn’t be a sole trader anymore, what if I wanted to pay a percentage of the amount of work we do each day instead of a fixed wage?

'Sole trader' is just a type of business. You can have as many employees as you like.

Smudger

  • Posts: 13438
Re: Taking on a worker
« Reply #3 on: July 05, 2022, 03:33:35 pm »
yes you can still be a sole trader

if your paying a percentage then it has to meet minimum wage OR have them as self employed

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 #4 on: July 05, 2022, 03:39:58 pm »
Thanks for replies guys, I thought sole trader meant I’m a solo worker with no employees lol.
How does it work when you do tax returns etc like I’ll obviously have to deduct his wage from my earnings?
if I decide to take someone on do I have to inform hmrc straight away?

Stoots

  • Posts: 6211
Re: Taking on a worker
« Reply #5 on: July 05, 2022, 04:29:44 pm »
Thanks for replies guys, I thought sole trader meant I’m a solo worker with no employees lol.
How does it work when you do tax returns etc like I’ll obviously have to deduct his wage from my earnings?
if I decide to take someone on do I have to inform hmrc straight away?

To do it properly you will need to run PAYE. Most important thing to remember is employers liability insurance,huge fines if caught without this.

There's quite a bit to it. Paye and payroll, contracts, employers ni, pension, liability insurance etc.

You can  work it out yourself with a little research, gov website and ACAS will give you all the info you need about employing .

But rather than getting bits of info off here just speak to an accountant and get them to sort it all out for you.

Arnold Palmer

  • Posts: 20777
Re: Taking on a worker
« Reply #6 on: July 05, 2022, 04:47:48 pm »
But rather than getting bits of info off here just speak to an accountant and get them to sort it all out for you.

A decent accountant will run payroll for you for a smallish weekly charge.

Ascjim

  • Posts: 220
Re: Taking on a worker
« Reply #7 on: July 05, 2022, 05:37:47 pm »
Ask your accountant ffs

G Griffin

  • Posts: 40745
Re: Taking on a worker
« Reply #8 on: July 05, 2022, 05:43:46 pm »
Cooking the books and getting an accountant is the easy bit.
Getting a worker is the hard part.
⭐⭐⭐⭐⭐⭐

Pete Thompson

  • Posts: 960
Re: Taking on a worker
« Reply #9 on: July 05, 2022, 09:54:47 pm »
I have just taken on an employee, this is what I found;

1) recruitment itself is the hardest part. Many people applied (I used indeed paid-for ads), nearly all totally unsuitable. I increased the salary on offer and got better candidates.

Eventually I got an applicant that seemed perfect. Been working for nearly 3 months and everything has gone smoothly.

2) it is possible to employ as a sole trader but I wouldn’t recommend it. The potential liabilities of a 1 man window cleaning business are very small. But if you employ, you are then responsible for someone, they can sue you, take you to a tribunal etc. even a small error can result in you paying out £10k.

I changed to a limited company before employing, it’s more hassle but peace of mind.

3) The consequences of getting things like payroll, PAYE,  pension etc wrong are pretty terrible. It’s possible to do yourself, but it’s a lot of paperwork. this is one instance where getting a professional (eg an accountant) to do this for you is well worth while.

4) people will advise you to take someone on self-employed. My advice would be don’t do it. You’ll get a better calibre of candidates if they are straightforward employed. They will take the job more seriously and will be less likely to want to start up on their own.

5) when calculating how much you can afford to pay them, you need to know:

- how much minimum extra profit you want to make from having a worker

- how much the cost of employing is, including taking into account :
Their gross salary
Their paid holiday
Extra accountancy fees to run a payroll
Your contributions to their pension (minimum is 3% of their salary)
EmployERS National Insurance (this is not the NI that’s deducted from their salary, it’s extra NI you have to pay as an employer)
Bonuses
Overtime
Employers liability insurance

- How much extra turnover you expect to achieve as a result of their work.

In my case, my employee has picked up the work really quickly, and is already exceeding all my estimates.

The next thing is to try your hardest to be a good employer. Don’t make unreasonable rules or demands (such as requireing climbing over locked gates etc). Pay on time and without fuss. Reimburse reasonable expenses quickly.

It’s not easy to employ, but if you’re going to do it, you might as well do it properly.

lal

  • Posts: 1112
Re: Taking on a worker
« Reply #10 on: July 06, 2022, 12:15:00 pm »
I have just taken on an employee, this is what I found;

1) recruitment itself is the hardest part. Many people applied (I used indeed paid-for ads), nearly all totally unsuitable. I increased the salary on offer and got better candidates.

Eventually I got an applicant that seemed perfect. Been working for nearly 3 months and everything has gone smoothly.

2) it is possible to employ as a sole trader but I wouldn’t recommend it. The potential liabilities of a 1 man window cleaning business are very small. But if you employ, you are then responsible for someone, they can sue you, take you to a tribunal etc. even a small error can result in you paying out £10k.

I changed to a limited company before employing, it’s more hassle but peace of mind.

3) The consequences of getting things like payroll, PAYE,  pension etc wrong are pretty terrible. It’s possible to do yourself, but it’s a lot of paperwork. this is one instance where getting a professional (eg an accountant) to do this for you is well worth while.

4) people will advise you to take someone on self-employed. My advice would be don’t do it. You’ll get a better calibre of candidates if they are straightforward employed. They will take the job more seriously and will be less likely to want to start up on their own.

5) when calculating how much you can afford to pay them, you need to know:

- how much minimum extra profit you want to make from having a worker

- how much the cost of employing is, including taking into account :
Their gross salary
Their paid holiday
Extra accountancy fees to run a payroll
Your contributions to their pension (minimum is 3% of their salary)
EmployERS National Insurance (this is not the NI that’s deducted from their salary, it’s extra NI you have to pay as an employer)
Bonuses
Overtime
Employers liability insurance

- How much extra turnover you expect to achieve as a result of their work.

In my case, my employee has picked up the work really quickly, and is already exceeding all my estimates.

The next thing is to try your hardest to be a good employer. Don’t make unreasonable rules or demands (such as requireing climbing over locked gates etc). Pay on time and without fuss. Reimburse reasonable expenses quickly.

It’s not easy to employ, but if you’re going to do it, you might as well do it properly.

Thanks Pete, ive changed my mind about even thinking of employing Now.  😫

alank

  • Posts: 648
Re: Taking on a worker
« Reply #11 on: July 06, 2022, 12:43:52 pm »
I've employed a good few in the past I now only employ my daughter part time and subcontract a bit of work out.
I've cherry picked my work over the years and now only take on work if I definitely want to have it.
In the past when I had multiple wages to pay I found that I never had time off either with the extra cleaning and administration or sorting vans and equipment etc.
So I decided to downsize.
I now have what I consider a good manageable round of work and a good work life balance which I think is important.

johnny bravo

  • Posts: 2699
Re: Taking on a worker
« Reply #12 on: July 08, 2022, 07:45:17 pm »
i see your from  Galway Larry.   great part of the country.       just get a local lad  and give him a commision wage.     Let him work on a commision basis.    No one will know how much you actually pay him . only you 2
Just pay him a bonus end of the week  cash in hand .   you look like you will need someone soon . some decent lads out there.    the younger the more they will want the money..      id hate to employ someone  and they go on the sick for months  and you know theres  fek all wrong with them

dazmond

  • Posts: 23966
Re: Taking on a worker
« Reply #13 on: July 09, 2022, 09:11:30 am »
It seems a lot of hassle employing someone legally these days....

Can't you just have someone a few days a week cash in hand like the good old days?
price higher/work harder!

G Griffin

  • Posts: 40745
Re: Taking on a worker
« Reply #14 on: July 09, 2022, 09:29:22 am »
It seems a lot of hassle employing someone legally these days....

Can't you just have someone a few days a week cash in hand like the good old days?
It's probably easier to do it now than it was in the good old days  ;D.
⭐⭐⭐⭐⭐⭐

tlwcs

  • Posts: 2088
Re: Taking on a worker
« Reply #15 on: July 09, 2022, 12:33:12 pm »
It seems a lot of hassle employing someone legally these days....

Can't you just have someone a few days a week cash in hand like the good old days?
It's probably easier to do it now than it was in the good old days  ;D.

To good old days are long gone. I see so little cash these days in comparison to 20 years ago

Stoots

  • Posts: 6211
Re: Taking on a worker
« Reply #16 on: July 09, 2022, 02:09:03 pm »
Theres not much benefit to paying someone cash in hand.

wages are tax deductible so if you are paying him 10k a year for example its probably cost you 13k or whatever as youve already paid the tax on it.  Then when you factor in your are screwed if they get injured or grass you up its not really worth it. Maybe for the odd day here and there but any sort of regualrity its pointless.

G Griffin

  • Posts: 40745
Re: Taking on a worker
« Reply #17 on: July 09, 2022, 02:13:40 pm »
It seems a lot of hassle employing someone legally these days....

Can't you just have someone a few days a week cash in hand like the good old days?
It's probably easier to do it now than it was in the good old days  ;D.

To good old days are long gone. I see so little cash these days in comparison to 20 years ago
I meant there's probably less chance of getting caught than in the good old days.
⭐⭐⭐⭐⭐⭐

dazmond

  • Posts: 23966
Re: Taking on a worker
« Reply #18 on: July 09, 2022, 03:39:51 pm »
It seems a lot of hassle employing someone legally these days....

Can't you just have someone a few days a week cash in hand like the good old days?
It's probably easier to do it now than it was in the good old days  ;D.

To good old days are long gone. I see so little cash these days in comparison to 20 years ago

Just because you don't get physical cash in your hand doesn't mean you couldnt pay a casual helper in cash a few days a week if you wanted to.
price higher/work harder!

Smudger

  • Posts: 13438
Re: Taking on a worker
« Reply #19 on: July 09, 2022, 04:47:34 pm »
 ???
What like untraceable bank transfers 🙄🙄🙄

If you want to employ just do it correctly

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