So your business is growing, you’re almost swamped and you desperately need some help. You’ve found the perfect person to help you grow further and you’re about to be an employer! Here are my 6 hints and tips to make sure you don’t fall foul of HMRC and legislation.
1. You’ve probably already agreed on their rate of pay, however make sure that you are paying at least minimum wage. Minimum wage alters based on the age of your employee, or if they’re an apprentice. Current minimum wage for someone 21 and over is £6.50 per hour*. There are other rates for younger employees. Rates tend to change in October, so if you are running your own payroll ensure that you keep informed of any changes
Current minimum wage for someone 21 and over is £6.50 per hour (From October 2014*)
2. Ensure that your new employee has the legal right to work in the UK. The Gov.org website has a tool to help you ensure that the person you plan to employ is eligible to work in this country. Follow this link: www.gov.uk/legal-right-work-uk
3. You should also apply for a DBS check if you are working with vulnerable individuals or security. An employer has a right to do this if they work within certain sectors.
4. You will need employer’s liability insurance as soon as you become an employer. Should an employee become ill or injured due to the work they do for you this will help to provide for compensation. The Gov.org website will outline the requirements for this insurance and exceptions.
5. Your employee is entitled to receive a written statement of employment, outlining the job including terms and conditions. This is required if you are employing someone for a month or more. Further details can be found via the Gov.org website.
One More Point
You MUST register as an employer with HMRC.
You have to register before the first payday.
Be aware that registration can take up to 2 weeks.
The above also applies to people that work within your home if they work solely for your family. This includes care workers, housekeepers, gardeners, nannies and gardeners.
If there are any points specific to your business, or you need help with payroll advise and guidance please do send an email using the contact page or email [email protected].
Always happy to help.
*Rate from October 2014. Liable to change in the Budget of 2015.
