can you just pay them and take money out of till?
2007-06-29 06:55:34 · 5 answers · asked by brian s 1 in Business & Finance ➔ Taxes ➔ United Kingdom
No, you can't just take the money out of the till, you`ll have the Inland Revenue on your back!
All employees must be officially on the books, and pay tax and national insurance. You also need to make employers NI contributions as well. If you don't, you will get caught eventually, and they`ll come down hard on you.
Your staff should also have a contract, and the appropriate rights, they could take you to a tribunal otherwise.
2007-06-29 07:59:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
For anyone who earns more than £1 a week (that's not a typo) you must operate the PAYE rules.
Ask them to complete form P46. This will give you all the personal details you require. Then follow the instructions as to what code number to use when taxing them.
If they tick the box that says it is their only job then you would use a code number of 522L. This would mean no deductions from pay of exactly £100 per week.
You have already been warned that you would be liable for the deductions that should have been made should you be found out.
When you mention taking the money out of the till it would seem you intend to understate your takings by that amount. This would be a VAT fraud just to add to your problems.
2007-07-01 05:05:43 · answer #2 · answered by tringyokel 6 · 0⤊ 0⤋
I whould ask the tax office , concering staff ,
As far as I know it is now illegal to employ casual staff of any sort.
Yes there are ways around it
And if you are paying them £100 a week , you whould need to put them on the books as they are required to pay tax and NI
2007-06-29 19:07:44 · answer #3 · answered by Stephen A 4 · 0⤊ 0⤋
Even though you could pay them cash in hand if the tax man ever found out you would be liable for everything back to when they started working, as the tax/NI for £100pw is so little you may aswell do it through the revenue and keep it legit
2007-06-29 14:47:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They must be on the books. That means you must have their names, addresses and National Insurance numbers. While they might not pay any NI at that mediocre level of pay, you may need to pay employer's contributions.
2007-06-29 13:58:57 · answer #5 · answered by Anonymous · 1⤊ 0⤋