Taking on first employee

[Novascotia33]

I've come to the point at which I think I need to take on an assistant. Just part time, but none the less this is a big step for my little business. I plan to advertise in the next month as I'm no longer able to keep up with the pace of work (and remain sane). I've absolutely no idea where to start, and would much appreciate any words of wisdom from anybody who has been in this situation, it seems there's a lot to think about! I took a look on the HMRC website got information overload and gave up.

All advice, viewpoints gladly received.

The UK Business Forum is a most excellent resource
www.ukbusinessforums.co.uk/forums/forumdisplay.php?s=fe597ff8bcaa8fb17efa0412da4588db&f=55
register as an employer (online) - costs nothing and then you can play it by ear

brilliant, thanks, will check that out.

Just a quick thought, don't pay to advertise your job. Using Gumtree is a great option to keep the cost down. I posted an advert for a job on it in my previous role and received a great response.

Get someone to do your payroll for you - not necessarily your accountant who will likely be expensive. It'll save you a shedload of time, and penalties for failing to pay tax/NI to HMRC on time or file year end returns on time.

I used the Job Centre website, Gumtree and Netmums for advertising for a PT role. Got some great candidates (amongst lots of rubbish applications too) and ended filling vacancy from Job Centre online advert.

Are you a member of FSB? I used their legal templates to create employment contracts.

I use my accountant for payroll.

Good luck! Taking on someone was my best decision that I made whilst pregnant!

Great to hear it worked out Saffra, wondered how you were getting on.

Sorry for the hijack OP.

We use our accountant's book keeper for payroll. It all goes through accountant to start with but we pay book keeper direct and works out cheaper in the long run.

Thanks Watersign76!

Thanks guys. All great advice. How much do you pay your accountant to look after payroll? Is payroll for one person a complicated thing? I guess it must be. yikes.

I'm moving out of my garden office, and to a workshop premises (which I haven't yet found) it'll be a lot easier to have an employee in a neutral space i hope than in my garden. But I'm wondering about insurance? holiday pay, sick pay, my legal obligations? I'll look at FSB, funnily enough I live opposite one of their directors, maybe he can help.

Saffra when you decided to take someone on, how did you decide how many hours you needed them for? Or did you keep it flexible. Will deffo try gumtree and job centre, also local paper too as it wont be expensive (I'm in Northumberland)

Download this and have a play with it
www.hmrc.gov.uk/paye/tools/basic-paye-tools.htm

payroll bureaux normally charge per payslip plus an extra for the year end return

The HMRC PAYE tools software is better than it used to be, it is now just rubbish instead of not fit for purpose. IMHO.

Plenty of bureaux set up to serve small businesses, look for 'nanny payroll' providers as employers of domestic staff often only have one employee, some good agencies at c.£140pa fixed fee.

Or download Brightpay - free for up to 3 employees and actually pleasant to use. IMHO.

Plenty of information on Business Link on sick pay, holiday entitlement etc.

Or get an accountant, we can give you lots of advice tailored to your specific circumstances and may cost less than you think - in fact we can often save more in tax than our fee!

I'll go with Anchovy there - HMRC is better than nothing. And that is all.

My accountant was doing my payroll already as I draw a salary, so just added the employee on. Don't know how much it costs if I'm honest - sorry, not very helpful.

I used towergate (via FSB) initially but found more competitive quotes elsewhere subsequently. So, even though you are supposed to get preferential deals through FSB, it does pay to shop around.

When I initially advertised for the role, I did advertise for a set number of hours, which I've subsequently increased twice since - partly due to sales growing but also to cope with seasonal demand.

Have you looked at the Business Link website? That has (or did have) some helpful info on becoming an employer as far as your legal obligations. Then, in terms of any specifics, if you are a FSB member, you can ring their helpline - which I have done myself.

Jobcentre Plus is a good (free) place to advertise, although you will get a HUGE response at the moment to any job advert placed.