Question on employment status for parttime mothers help

[ceeveebee]

I have recently found a mothers help to assist me with caring for my twins as well as cooking, cleaning etc, for 3 afternoons per week. She also does some sole charge nannying for another family for 1 day per week, and has a job in a shop for another 16 hours per week. I also believe she has other self employed income for a catering business. I am paying her in cash. Should I be entering into an employment contract and applying PAYE, or should this be treated as self employed?

I can't see anything that would point to self employment here so I think you need to operate PAYE - which (because of the shop job) will probably mean deducting tax at 20% from the whole of her pay - I hope you have agreed a gross wage!

Thank you MrAnchovy, yes I have agreed a gross hourly rate.