Employing staff
Staff who work within your business will normally be employees and may not work as self employed unless you are able to establish that their working circumstances and contractual arrangements with you can legally be established as sub contract.
If you employ staff you need to operate the PAYE and National Insurance procedures and have a PAYE scheme set up. A scheme is often set up automatically by H M Revenue & Customs following formation of the company. This will generate the need for regular returns even if the deductions are nil. There is a level of tax free pay, 2009/10 £124.18 per week. To qualify for this staff must either give you a P45 for preceding employment or complete a form P46 PAYE: Employer’s notice to H M Revenue & Customs Office and be able to state that it is their only job.
