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Registering employers PAYE/Tax on a job below the threshold

(5 Posts)
medjool Wed 01-Jan-14 10:24:01

I've taken a look at the tax calculators for an after school childcare job I am offering and it seems as though it's below the threshold. Do I need to register as an employer given there is no employer's tax to pay?

Kewcumber Wed 01-Jan-14 10:31:11

Yes because HMRC needs to know what they are earning. you may not be paying them above the threshold but they might be earning other money which takes them above it. The rules are slightly different though - I think you can report any payments up to 7 days after payment instead of before.

medjool Wed 01-Jan-14 10:34:15

Thanks. So answers my question about whether to use a payroll service too (a definite yes).

Cindy34 Wed 01-Jan-14 10:36:39

Would it not depend on various factors:

What threshold - NICs LEL is the lowest.
If it was the persons only income.
If the pay would ever change, such as overtime bringing the amount over the NICs LEL.

These days I would say it is better to register and let HMRC know the typical weekly/monthly pay amount. You may well do zero returns but at least it is set up should things become taxable.
You could use the HMRC online system. If things get too complex then you could pay a nanny payroll service to take over.

Agree a GROSS salary.

Cindy34 Wed 01-Jan-14 10:39:38

You will need to provide a payslip each time you pay them, regardless of if there are deductions or not. Don't think HMRC online system does them, though you can just write your own using a duplicate book.

Nanny payroll services start from £99 a year (though range seems to be £99-£250) so yes build in the cost of payroll admin into your budget and let them deal with it, plus many will give you access to employment law advice.

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