How complicated is it to employ someone?

[BillyButtfuck]

If you are self employed and the director of a Ltd company, how difficult (the process) and costly would it be to add an employee? I don't mean wages but the administration side of things, accounting, pensions...etc.

DH is self employed working for a large multinational company and wants me to work part time for him as he is so busy and we met working together in the industry.
We have talked vaguely about the what ifs and threw around numbers of about £600 per month for 16 hours per week.
Before we sit down and talk about it properly I want a better understanding of the process and cost of adding me to his business as an employee.
He said it might be easier and cheaper to add me as a director but I'm not sure how that works and if it would effect my rights.

Any help or brief on how you add people as an employee/director and the associated costs would be really helpful.

[BillyButtfuck]

Is anyone about? I really want a better understanding for myself before we discuss further.

[flowery]

If it's his own limited company is he not already an employee of it?

[BillyButtfuck]

Yes but I wasn't involved when he set it up and don't have a great knowledge of how costly the administration would be to add me as an employee and what the process involves like pensions and national insurance.
I'd also like to know how my rights would differ as an employee or as a director and the difference in administration costs.

[OllyBJolly]

Does he have an accountant? They'll be best placed to advise.

Might be better to add you as a director and then pay you by dividend but depends on a lot of "ifs" and "buts".

[BillyButtfuck]

Yes he does, I will phone and make an appointment with him - thank you.

[StereophonicallyChallenged]

If a ltd co only has directors as employees you don't fall under auto-enrolment so from that perspective then director is best! It also means you can organise both personal tax allowances etc in a more tax efficient way as a couple. Adding a director is simple, so I wouldn't worry about the extra admin

[OllyBJolly]

To add to Stereo 's post - just make sure that if you take that route you are aware of the responsibilities of being a director.

[BillyButtfuck]

Thank you Stereo, he is keen to make me director for the tax savings but it's exactly what Olly is suggesting that is putting me off because I just don't know what boat that would put me in. I assume liable for any company debts or malpractice (not that there is any but you never know!)

[OllyBJolly]

You wouldn't necessarily be liable for company debts if you are a director of a limited company. You are responsible for ensuring the finances are in good order and for the company adhering to the law. In reality, if everything is run properly, there isn't a high risk but you have a legal responsibility to be aware.

Your accountant will be well placed to advise.

[LonnyVonnyWilsonFrickett]

It's also worth considering that all your eggs will be in one basket - so if anything happens to the income stream (like a cancelled contract) both of your incomes will be affected. If you're not working at the moment that may not seem like a risk, especially if you're essentially 'splitting' DH's current income. But long-term, you working for someone else for 16 hours may be more secure, if not more lucrative.

[LonnyVonnyWilsonFrickett]

^^ Dh and I were both made redundant on the same day once so I am hyper-aware of risk spreading

[BillyButtfuck]

Oh I'm sorry to hear that Lonny.

The company who pay DH will give him £1000 plus VAT to employ someone part time. If I don't do it then he will employ someone else and we would rather the money come back into our household than pay someone else! I'm not looking for work (we have 2 under 1 ) but this could give me complete flexibility of hours and some extra money for the family.