Employing Freelance workers - what are my responsibilites

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Re: Employing Freelance workers - what are my responsibilite

Postby Graysalchemy » Tue Oct 20, 2015 8:39 am

Silly me I should have suspected :giggle: :giggle:

Though the new changes will see a flux of companies issuing share to new directors, which will ring alarm bells at HMRC according to my accountant. Luckily I did it years ago. :D
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Re: Employing Freelance workers - what are my responsibilite

Postby Jamesnkr » Tue Oct 20, 2015 9:05 am

Not your average framer wrote:I have had this discussion with HMRC. I do not have to deduct PAYE, or NI from my own wife.


That is not correct. Even if you pay here below the NI/tax limits, then you still have reporting requirements under RTI as you - presumably - already have a PAYE reporting requirement on account of your other employees.

The only time when your are correct is if you pay her below the NI threshold (about 8k) AND you have no other employees. Since RTI came in (Real Time Information reporting requirements) last year, you have to report everything to HMRC.

And if you are paying her more than that 8k then - unless she is a partner in a partnership (in which case you are completing a partnership tax return as well as your income tax returns) - NI and PAYE apply just as to any other employee.

If they really did tell you that, I hope you got it in writing from them. And I suggest you give them a call to check.
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Re: Employing Freelance workers - what are my responsibilite

Postby Tudor Rose » Tue Oct 20, 2015 11:45 am

Jamesnkr is absolutely right, employing family members is the same as employing anyone else. The only difference is if they aren't employees at all but are partners or directors in the business and again Jamesnkr is right that you would then be completing different tax returns (ie partnership returns) alongside your own self assessment.

HMRC's own website makes the rules very clear on this:

https://www.gov.uk/contract-types-and-e ... volunteers

Of course if you pay your wife below the NI and Tax threshold then of course you wouldn't have to deduct either from the wages you pay her, but you would still have to let them know she is employed by you.
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Re: Employing Freelance workers - what are my responsibilite

Postby IFGL » Tue Oct 20, 2015 1:05 pm

I think what Mark means is you don't have to work tax out for a spouse if she is self employed and is a partner in the business in that situation her tax is worked out herself or by a joint accountant or even by her own accuntant, but that would apply to any business partner not just a spouse.
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