There have long been misconceptions regarding labour costs, “self-employed staff” and “cash in hand” payments. Employing someone through the PAYE scheme means minimum wage implications, workplace pensions and NI costs.
The rule is that, apart from short term harvest workers and beaters for shoots employed for 2 weeks or less, short term employees should be treated in the same way as more permanent staff, including notifying HMRC of starting and leaving dates via RTI.
It is essential to obtain a starter checklist as soon as possible when someone is taken on. Tax code BR should be used if you are not given a P45 or starter checklist.
Paying “cash in hand” and not grossing up through the payroll is not permitted.
If you need advice on handling such workers, or payroll matters generally, get in touch with us.
