Have you been notified by HMRC that your self-employed workers need be employed?
Have you been notified by HMRC that your self-employed workers need be employed?
If you run a business that relies on self-employed workers and have been advised by HMRC that you should be employing them, then you could be feeling uncertain about what to do and how to make the transition.
There are benefits to employing staff but this can come with some challenges and additional responsibilities too, such as payroll, taxes and employment rights.
How to transition your staff from self-employed to employees
If you decide to transition your staff, you will need to follow some steps to ensure a smooth and legal process:
- Inform your staff of your intention and explain the benefits of becoming employees
- Negotiate the terms and conditions of employment with your staff, such as salary, hours, holidays, notice period, etc.
- Provide your employees with a written contract of employment
- Register as an employer with HMRC
- Set up a PAYE scheme for tax deduction and National Insurance contributions
- If they are eligible, enrol your staff in a workplace pension scheme
- Keep records of your staff’s pay, tax, National Insurance, pension and any other deductions
Remaining legally compliant
Once you employ a member of staff, you have certain obligations both financially, but also in the eyes of the law.
You can find out more here:
Employ someone: step by step – GOV.UK (www.gov.uk)
How we can help
CRB Business Solutions have been advising and supporting small businesses and charities for over 10 years. We have an approachable team of experts on hand to help you navigate the complexities of payroll and HR.
We understand that this process can be daunting and time consuming. By outsourcing these services, you can spend more time on the core of your business and have 2 less things to think about!
Nigel and Steve support organisations from 1 – 150 staff with their payroll needs. They will provide accurate payroll, pension, HMRC and other third-party payment calculations every month based on the information you provide, as a well as process payments on your behalf. Be reassured your payroll complies with GDPR and changes to rules, regulations and laws.
Kate and Nicola are qualified and experienced HR consultants. By offering a minimum contract of 3 hours per year, with the option to top up hours if the need arises, you will have access to HR support during the working week. For all new clients, a one-off fee will enable you to have a comprehensive review to explore your HR needs. In addition, you’ll receive a personalised report, operations manual and full suite of policies and procedures.
If you would like to find out more, we would love to hear from you! Email us on enquiries@cbrsolutions.org.uk
