How to set up a business?

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So I'm not sure whether this is even possible, however ....

I am a single adult woman who lives alone, have a decent sized house. I am due to go and work away for some weeks at a time.

For the time I am away, I was looking at employing someone to come in and keep on top of things. Just general house-keeping; dusting, hoovering, bringing in any parcels, food shopping for when I'm due to be back etc.

When looking into it, I don't particularly want a stranger coming in when I'm potentially not even in the country and after speaking to my sister, who's currently on maternity leave and isn't wanting to go back full time, she has offered to do it.

However, this cannot be cash-in-hand type of work and needs to be legitimately paid through her bank.

How do I go about this? Do I need to create a whole business to employ one person? What payroll company do I use?

Anything else I need to be aware of? Thanks.

She either needs to set up self employed and declare the income

Or you need to set up a payroll scheme

Depends on if it will be deemed an employer relationship

Easiest thing if for her to go self employed

So to go self-employed she would declare me as her employer? Sounds easier than me going through a payroll company

She is self-employed and you contract her services. You don't need to set up a business.

You are not her employer if she is self-employed. She is. That is what self-employed means. You are just a customer who pays her for her services. You wouldn't have to worry about tax, NI, etc. at all.

As PPs have said, the easiest option is for your sister to set up as self employed and invoice you for her services. You can then legitimately pay money into her bank account and she will be required to complete a self assessment return every year to declare her earnings.

Your sister would be just like a plumber / builder / cleaner / window cleaner / dog walker etc. who charges customers for a service - in this case housesitting. She may or may not provide you with an invoice.

Then it's up to her to keep it legit there's lots of info on HMRC about self assessment and I believe you can earn up to £1,000 tax free but please please check that!

She needs to go self employed you do not need to start a business

Double check the IR35 rules - if you are her only client, you need to make sure she's not accidentally falling into "employee" rather than "self employed" from HMRC's point of view. But don't think you need a business, you just pay her invoices like you might pay a tradesperson for plumbing work or whatever :)

Why would you even consider setting up a business given the situation you describe? It just doesn’t seem in your best interest. Let the person providing the service invoice you, otherwise you will need payroll services, pension, holiday entitlement etc. I agree if the person only works for you they could claim to be an employee.

IR35 only applies if the cleaner is working for OP through an intermediary company. Even if the cleaner sets up a company, OP doesn't have to worry as she is not a company, limited liability partnership or unregistered company and does not have turnover of £10.2M.

Ahh thank you for clarifying! I don't know all the ins and outs except for having checked it doesn't apply to me, but I know a few people who have fallen under it with a single employer so thought was worth flagging!

OP, as you were :)