Do people really pay tax and NI for cleaners etc? And how do you work out how much it is?

[laura032004]

We're thinking of employing a mothers help, but trying to work out the full financial implications if we pay tax and NI. Say we offered a salary of £6 per hour after tax & NI, what would that be gross (?)

And do people really pay tax & NI for cleaners / mothers helps etc?

AFAIK cleaners etc are normally self-employed and work out their own tax and NI.

i cant imagine many people pay tax for cleaners..

most families would pay a cleaner less than £40 / week (some alot less than that) so that doesnt make enough to even pay tax on.

should a cleaner declare her earnings? probably, but then i dont know any one who declares cash in hand pays to cleaners / BB sitters etc

Cleaners - No..they are normally self-employed. Mother's helps on the other hand are generally employees (only work for one family at a time and they cannot 'subcontract' their job to a colleague) - so Yes, you will probably need to pay their tax and NI.
Try the nanny payroll websites (nannytax and nannypaye.co.uk) they tend to have a converter to show you how much net/gross/gross plus employers NI will add up to.
And remember to check out the minimum wage regulations, the requirement for paid holidays etc.

Gross = before deductions for tax/NI. Net = what you take home after deductions.

Agree mother's help may well be an employee as she works in your home and cannot subcontract. Call the HM Revenue and Custom's employers helpline (details on their site), v. helpful.

Thanks everyone for those helpful replies