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Employing temporary staff as a small business

Former Community Member
Former Community Member
Hi 


I am currently setting up my own company and will predominantly be working alone to begin with but was looking for advice on how to best to employ temporary staff if required.


I will most likely need an extra pair of hands occasionally and was wondering if anyone could give me some advice on how best to approach this as an Ltd. company in regards to the following points 


1. Public liability insurance for the extra individuals working on site with me.

2. Paying tax for temporary workers 

3. Being liable for the work done by the skilled persons 

4. Signing work off completed by skilled workers not under my supervision


Any advice / constructive criticism will be gratefully appreciated


(Sorry if this isn't the best place to post my query, have found members extremely helpful previously so trying here first)


Thanks, Deep
  • 0
    Hi,

    I`ve never run a limited company but have been self employed for many years.

    I have "employed" others on a subcontract basis.

    Here is my offering:-

    1. Public Liabillity - yes many insurers give cover for such but like any insurance you need compare all the clauses to limit any nasty surprises if you ever need to claim.

    2. Paying tax is a little hassle (isn`t it always!) just register with HMRC and make sure you fill a return in (and pay tax if applicable) . You must fill a return slip in even when you have no tax to pay and there is a penalty for missing that so watch out for that one.

    3. You are indeed liable for anything your employees/subcontractors do for your firm so ensure you get only the best operatives you can trust and supervise as adequately as you feel needed. Skilled/unskilled makes no difference in that respect.

    4. Signing off work by by others you employ , well that`s up to you to supervise them as much or little as needed. It is your name it`s being done in same as in 3. above.


    I hope that helps and good luck


    PS, if you use subcontractors instead of or as well as your own employees then check that they have their own insurances with adequate cover too
  • 0
    I have only had to use extra help on a few occasions so I pulled in another SE sparky and he billed me for his time, probably more expensive but hassle free
  • 0
    Blencathra:

    I have only had to use extra help on a few occasions so I pulled in another SE sparky and he billed me for his time, probably more expensive but hassle free


    Yes but you should have registered that with HMRC and deducted tax if appropriate. i.e. if that subcontractor was registered with HMRC themselves then deduct the flat rate of tax or nil if  their tax status allowed it.  In they were not registered then you deduct a higher amout. In all circumstances you must check with HMRC.  If someone has only sold you goods then you`d be OK but if you conspired with a n other for them to bill you for goods and materials combined you could not include their profit on materials as goods but must be treated as any labour they charge you which you must deduct tax for. There are penalties and they could chase you for any tax the subcontractor has not paid plus intrest


     


  • Former Community Member
    0 Former Community Member
    Great help - Thank you 


    So ultimately regardless of what terms and level of skill I employ someone on, all completed works will be signed off by myself and only I am accountable for the work.


    Therefore if I did intend on taking blokes on to complete contracts on my behalf I best make sure I can trust their workmanship and that they won't screw me over..
  • Former Community Member
    0 Former Community Member
    Mr_deep_:

    Great help - Thank you 


    So ultimately regardless of what terms and level of skill I employ someone on, all completed works will be signed off by myself and only I am accountable for the work.


    Therefore if I did intend on taking blokes on to complete contracts on my behalf I best make sure I can trust their workmanship and that they won't screw me over.. 


    I think you need to be slightly careful of that - if you employ a person to do some work, and they fcuk it up, and you put it right (or pay them extra to put it right), they are probably "employees" for tax status - if you call them back to put it right, at their cost, then they are probably subcontractors.


    Regards


    OMS


  • 0
    Plus, if they can choose to work for you and others too they are probably subcons too . The easy way is to consult HMRC before you commit yourself, although at the moment they might be busy


    I have spent a lot of my life being a subcontrator to a couple of contractors whilst having my own customers and also emplying subcontractors of my own at times too
  • 0
    You are going to need Employee Liability insurance for people you use whatever their status, direct employees or subcontractors.


    I they are genuine sub contractors you will have to deduct CIS tax from their invoices at a rate determined by HMRC.


    There are new strict rules about the use of contractors called HMRC IR35. If you use them to frequently, they wear your tee shirts and fleeces, your logo on their van, you tell them when they can have days off, you supply them with tools and plant etc etc then IR35 could determine them to be employees so you would have to take them on the books and pay employers NI, pay wages, deduct tax and NI and provide them with paid holidays. Get good professional advice as if you don't comply with IR35 you could be asked to pay for all the deductions you did not make.
  • Former Community Member
    0 Former Community Member
    ebee:

    Plus, if they can choose to work for you and others too they are probably subcons too . The easy way is to consult HMRC before you commit yourself, although at the moment they might be busy


    I have spent a lot of my life being a subcontrator to a couple of contractors whilst having my own customers and also emplying subcontractors of my own at times too


    I'm so glad I posted the question - Have a lot of research to do before I will take on an extra pair of hands now.. 


    its getting more confusing than I had anticipated but I'm sure we'll get there with some good old fashioned perseverance!


  • 0
    Back in the nineties we had over 20 lads on the books and around the same coming and going on a self-employed basis. Some of the guys were good, solid chaps who were a pleasure to work with but I am afraid that others let the show down in many different ways. Stealing materials and lying about hours, turning up hung-over or not turning up at all, bitching like old hags, completely ignoring common sense health and safety, leaving a mess for the client to clean up, the list goes on. Reading my own words I really can’t believe that I stuck it for so long! My problem was that I had several huge contracts that required manpower input at a time when there was a general shortage of good skilled operatives. If I were you, I would build up slowly and  deliberately and keep tight control of all that you do. 

  • Former Community Member
    0 Former Community Member
    lyledunn:

    Back in the nineties we had over 20 lads on the books and around the same coming and going on a self-employed basis. Some of the guys were good, solid chaps who were a pleasure to work with but I am afraid that others let the show down in many different ways. Stealing materials and lying about hours, turning up hung-over or not turning up at all, bitching like old hags, completely ignoring common sense health and safety, leaving a mess for the client to clean up, the list goes on. Reading my own words I really can’t believe that I stuck it for so long! My problem was that I had several huge contracts that required manpower input at a time when there was a general shortage of good skilled operatives. If I were you, I would build up slowly and  deliberately and keep tight control of all that you do. 

     


    Thank you - will take this on board.


    Tbh I maybe getting ahead of myself - but would rather do the research now b4 the pressure is and hopefully have a plan in place for if and when I need it


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