Tax and NI for mother's help

[happymschicken]

I am in the process of hiring a mother's help for a few mornings a week.

As her pay is under the tax and NI threshold do I have to still register her as an employee and will she be entitled to holiday pay?

I want to do this properly, rather than a 'cash in hand' arrangement.

Also, if she is entitled to holiday pay (I'm presuming she is) how do I work this out pro-rata?

As her pay is under the tax and NI threshold do I have to still register her as an employee

There is no such thing as "registering as an employee", but you will have to register for and pay her through PAYE if she earns £107 or more in any week, or if she has another job. If she doesn't have a P45 get her to fill in and sign a P46 to confirm her status.

and will she be entitled to holiday pay?

Yes - or more precisely she will be entitled to paid holiday.

I want to do this properly, rather than a 'cash in hand' arrangement.

Good

Also, if she is entitled to holiday pay (I'm presuming she is) how do I work this out pro-rata?

Everyone is entitled to 5.6 weeks holiday, which can include bank holidays. So if she works 2 mornings a week, she is entitled to 12 mornings off (11.2 but you cannot round this down). Alternatively, if her work pattern is irregular, multiply her hours actually worked by 12.07%. She is entitled to this amount of paid time off.