How to start when hiring self-employed staff

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I am wanting to employ 5-10 self employed staff how can i start doing this as i have never employed anyone before.

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Hi Andrew,

This is a popular topic today and there is some good advice contained within the previous few threads that might be useful to you.

In summary, to use self employed staff you should have a service level agreement with them that sets out the terms of your relationship.  It is a very straightforward process thereafter as long as you take care to avoid becoming liable for paying tax on the amounts that you pay to them, as previously discussed.

Kind regards,

Jenny 

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Hi Andrew

It is not clear what type of business you run however as a general rule of thumb please ensure the following as you will come up against it with hmrc

1) As stated as already ensure you have a contract in place

2) get invoices off them for all work done

3) To be classed as self employed you must ensure they are based at various locations during the course of the financial year.If hmrc see they are based at one location or on one contract the conclusion will be reached that they are employed and not self employed.

Hope this helps and if so a thumbs up would be appreciatwed

peter

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Hi Andrew,

You really do need to make sure you have an self employed agreement in place.

Here some tips from HMRC; if you can answer 'yes' to these questions about each worker, they can be seen as self employed:

  • Can they hire someone to do the work or engage helpers at their own expense?
  • Do they risk their own money?
  • 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?
  • Do they agree to do a job for a fixed price regardless of how long the job may take?
  • Can they decide what work to do, how and when to do the work and where to provide the services?
  • Do they regularly work for a number of different people?
  • Do they have to correct unsatisfactory work in their own time and at their own expense?
  • Like all things though it does come down to what they are doing, always best to take advice.

    We have seen self employed agreements with holiday pay in them! A really no no!

    Tom

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    Thank you for all your advise I'm very happy with everybodys help thank you so much.

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    There is a useful tool on the HMRC website - which will determines if your workers will be self employed or employees - http://www.hmrc.gov.uk/calcs/esi.htm

    If you would like any assistance on providing contracts (either for self employed workers, or for employees) then please feel free to contact me, and we can discuss in more detail your requirements.

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    The rule for self emplyed test is really if they need to provide their own tools, they can work flexible hours, or they can get someone else with the same ability to replace them etc

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