Paying a Labourer

Members online

Total: 385 (members: 3, guests: 382)

Share this page

Status
Not open for further replies.
Roofer2plasterer

Roofer2plasterer

Member
How do u go about paying for a labourer? Do u just pay him outta job price and put it down in tax return at the end of the year? or is there easier way of doing it (not Cash in Hand).
 
You have to get them to register as being self employed first, then you pay them but stop them 20% then every month you do their tax return and give them a tax receipt , its a right pain but once you get into the swing of it its not too bad, i think its best to pop down the local tax office and let them explain things its not that bad really ive been doing it for years its just an necessary evil.
 
It is a right royal pain roofer the tax man has made it hard.

If you are a registered subbie then your tax is deducted at source 20%

So if you take on a lab then you have to pay him gross out of your taxed earings then at the end of the year you get it back.

If you can register yourself as a contractor to be paid gross ( you have to have a min turnover of 30k) then you get paid gross so you can pay your lab and his tax much easier.

hard for me to explain
but do you undrstand ??

Rich
 
Yeah, i understand Rich. They make everything bloody awkward don't they. So basically if your not out quoting or doing the job your at home doing more paperwork???

Shoulda worked harder at school.


Cheers lads.
 
like what rich said there.. you cant really be a subbie and employ people... your both technically subbies to whatever firm your working for and are treated equally (like sh1t namely)..
registering main contractor is easy enuff... they just send you a pack of paperwork and its a case of paying whatever you knock off your lab for tax direct to inland revenue every month..
(or it used to be not too long ago, i had one of them yellow slip books for the lads..)
And you can also be main contractor, subbie and paye all at the same time.. it just needs an accountant at the end of the year so you can go down the pub whilst he saves you some money.
 
i get paid weekly from the firm i work for so i made my lab register self employedto get his UTR number then i just put my invoice in every week with what i've eraned less labs money then my net, then i just put an invoice in each week for my lab say price agreed with me on it then his amount
 
oasis....you shouldnt really be coming on here telling ther world your paying ur labourer cash in hand mate,all it takes is one slippery snake and you got a lot of explaining to do to the inland revenue son.....just a thought.
I agree with you all,they should make it easier for small business not harder as they are the backbone to this country!!!!!!! whats left of it any how.
 
Be aware mate there's only one man you gotta fear on this planet,he has more power than god and a truelly ruthless bas**ard that likes to kick you on the teeth when ur down. they call him the T-AXE MAN

Serious mate dont play games with him as he will send you to jail and you wont colect £200 when passing Go.
 
The comments about how hard it is to employ a labourer with all these rules made me chuckle, I don't want worry anyone but if the really look into the employment rules you will find that it is not legal to employ a labourer as selfemployed. If you are one of the unlucky ones that the revenue decide to pick on you would get a fine and be liable to pay all tax and N.I. that the labourer had saved compared with being P.A.Y.E. , oh and also all the employers N.I. that would have been payed. This also applies to having spreads working for you on daywork. I know several small firms (two or three guys) who have fallen foul of this so be warned. Now taking labourers (and spreads) on as P.A.Y.E. employees gives a whole new load of grief.
 
Don't take my word for it make some enquiries. Some time ago all contractors received booklets from the revenue setting out the rules and made it clear that as the employer it is up to you to make the correct decision as to how your workers are employed as it would be you who would take the rap not those you employ if not done correctly. I prefer not to have to worry so always look carfully at how I employ anyone.
As a general guide if someone works on metreage price, takes a financial risk with their work, has their own public liability insurance, is affected financially by poor weather and also presents an invoice before payment they can qualify as selfemployed. Other than that should almost certainly be on the cards. But this only a simple explanation so don't take this as gospel.
 
When I asked the tax office about taking people on subbies/labourers they didnt mention any problem at all but maybe I need to look into it.... bastards
 
theres that 12 weeks rule isnt there if u subby for a firm for more than 12 weeks they are supposed to take you on the books thats never happened with me tho, and when you work through an agency be it as a spread or a labourer they want u cis and hate having to pay u paye
 
I've had some sub'ies work for me for year's at a time, but they always have a contract with a start date and a fixed price for the work being offered e.g. start date 01/01/09 plots 1 and 2 must be finished by 01/03/09. Once this work is completed they get a new contract for the next job. There are also other things that need to be put into a contract but from my experience this keeps everthing legal.
 
essexandy said:
Don't take my word for it make some enquiries. Some time ago all contractors received booklets from the revenue setting out the rules and made it clear that as the employer it is up to you to make the correct decision as to how your workers are employed as it would be you who would take the rap not those you employ if not done correctly. I prefer not to have to worry so always look carfully at how I employ anyone.
As a general guide if someone works on metreage price, takes a financial risk with their work, has their own public liability insurance, is affected financially by poor weather and also presents an invoice before payment they can qualify as selfemployed. Other than that should almost certainly be on the cards. But this only a simple explanation so don't take this as gospel.
Click to expand...
if youve got two blokes subbying for a firm.. ones the spread and the others the gopher... surely the way to do it is put em both down as spreads?
purchase of materials aside..
and is it essential to purchase materials for a job before you can pay someone?
just wondered cos all i got last time was a little booklet of slips and all i needed was there utr number, national insurance number and a name?
on that slip was a space for materials etc but i was under the impression that it was there if needed and not an essential requirement?
 
If you are working for a firm then you have no worries about how you are employed as it is the responsibility of the guy paying you to do things correctly. If the revenue do a check and are not happy then it would be him with the fine and paying any money they calculate you saved. I know a guy who had 20 brickies working for him and they decided he was not operating within the rules and they said he would be getting a 26k fine and having to pay all the tax and N.I. that would have been payed if they had been on the cards. OUCH!!!
 
worth having that info andy... nice one..
what about being main contractor and employing your own labourer on a self employed basis though.. is there a way to keep em full time self employed?
or have you actually got to employ em paye, tax, ni, holidays, safety gear... even if youve no work for a week or 2?
 
makes you think how the big drylining firms get away with it andy i know lads that have worked cis for the same company for years Horburys being one of them they have got lads who have been with them constant on cis since before i started on the books for them 8 years ago i got binned off and they kept the lads who are subbying mainly because i refused to go cis
 
As I understand the rules there is no legal way of having a selfemployed labourer. You can have a labourer on the cards without having to pay them for days when you don't have any work for them, although if they are on a full time contract then you do have to guarantee them a certain percentage of their normal hours,but I'm not totally sure what the amount is. If I get time I'll find out in the next few days.
If these big firms are paying these drylining lads on cis day work or even on a metre price without there being the financial risks that I mentioned earlier then they could be collared at any time. I know some really big firms that took a lot of their lads on the cards and also others that are just taking a chance. Almost all the bigger firms are Ltd. so as long as they don't leave to much money in the business they would just be made bankrupt by the big fines and then start up under a different name I would guess. Not as easy as that if you are selfemployed.
 
Status
Not open for further replies.
Top