I thought lots of people needed work?

[MrSmith]

I suspect that on the contrary it's up to you to satisfy yourself as to whether you are using the services of a company or employing an individual.

Nannies could obviously be running a company and responsible for their own tax if they wished, but not asking and making that assumption wouldn't absolve you of being responsible for paying tax if you were wrong.

 

Again what’s with the nanny comparison and pay tax for being wrong about what?

 

If I see a gardener working next door to me and wanted them to do my garden, I wouldn’t be employing them because they wouldn’t work exclusively for me and would be classed has self employed, if they are on the dole and fiddling they will get into trouble if they get caught, but the law doesn’t require me to make sure they are not on benefits, and even if it did how would you check?

[Cyclone]

It was the comparison I chose before, I thought I'd stick with it. The particular job in question makes no difference though, look after my children or dig this hole, the tax issues are identical.

You think employment has to be on an exclusive basis, that must be confusing for people who work two part time jobs then...

 

If they don't issue you with an invoice and charge you VAT and you have reason to suspect that's because they are avoiding paying VAT for cash in hand work then you've just committed an offence. (Of course they might be below the VAT threshold and not registered, but it's your job to check)

[MrSmith]

It was the comparison I chose before, I thought I'd stick with it. The particular job in question makes no difference though, look after my children or dig this hole, the tax issues are identical.

You think employment has to be on an exclusive basis, that must be confusing for people who work two part time jobs then...

No it’s not, a nanny usually works exclusively for their employer and more often than not for many years, whereas someone that digs an hole would just dig the one hole and then do some work for someone else.

 

 

 

If they don't issue you with an invoice and charge you VAT and you have reason to suspect that's because they are avoiding paying VAT for cash in hand work then you've just committed an offence. (Of course they might be below the VAT threshold and not registered, but it's your job to check)

 

We are talking about when someone is or is not classed as an employee and not when someone should charge VAT for services rendered, and I still wouldn’t be breaking the law by paying someone in cash for providing a service.

 

HMRC says there is no law against paying in cash, or indeed asking for cash, and the onus is on the trader to make the correct earnings declaration. Of course, not all cash deals will be designed to evade income tax and VAT.

[Cyclone]

Of course there is no law against paying in cash, nobody suggested there was.

 

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_4015975

 

How to decide if you're employed or not according to HMRC.

 

You are probably employed if you:

 

have to do the work yourself - YES

work for one person at a time, who is in charge of what you do and takes on the risks of the business- YES

can be told how, when and where you do your work - YES

have to work a set amount of hours - NO, just till the job is done

are paid a regular amount according to the hours you work, and get paid for working overtime - even if you do casual or part-time work, you can still be employed - Fixed amount for the task

 

You are probably self-employed if you:

 

run your own business and take responsibility for its success or failure - NO

have several customers at the same time - NO

can decide how, when and where you do your work - NO (not on that day)

are free to hire other people to do the work for you or help you at your own expense - YES

provide the main items of equipment to do your work - NO (probably)

 

So no clear answer from that, but it looks more like employment than self employment...

[whoareya]

How much does a person on minimum wage take home?

I bet it is less than £50 a day.

[MrSmith]

Of course there is no law against paying in cash, nobody suggested there was.

 

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_4015975

 

How to decide if you're employed or not according to HMRC.

 

 

 

So no clear answer from that, but it looks more like employment than self employment...

 

No it doesn't, the OP hasn’t said they have to do the work themselves, or when they have to do it, the OP has a job that needs doing and is offering £50 to do it, I'm sure the OP wouldn’t have no problem if two people turn up and share the £50 or what day they choose to do it.

 

The £50 payment for digging the hole is also well below the PAYE threshold and National Insurance Lower Earnings Limit so there would be no need to register as an employer.

 

You are probably employed if you:

 

Have to do the work yourself – No

Work for one person at a time, who is in charge of what you do and takes on the risks of the business- What business, The only person with a business would be the person digging the hole, if the OP was charging to dig an hole for someone else and wanted to employ someone to do it, you may have a point.

Can be told how, when and where you do your work – No The OP will tell the person how big and how deep the hole should be but won’t be telling them how to dig it, much like I would tell a plumber where I want my new bath, but I won’t tell him how to install it.

Have to work a set amount of hours - NO, just till the job is done

Are paid a regular amount according to the hours you work, and get paid for working overtime - even if you do casual or part-time work, you can still be employed - Fixed amount for the task

You are probably self-employed if you:

 

Run your own business and take responsibility for its success or failure - Possibly

Have several customers at the same time - Possibly

Can decide how, when and where you do your work – Yes to how and day but not where, because the hole as to be in the custemers garden.

Are free to hire other people to do the work for you or help you at your own expense - YES

Provide the main items of equipment to do your work – possibly.

 

 

 

 

Quite clearly anyone taking on the job would be self employed.

[Cyclone]

Presumably the OP does actually intend to tell them when they can do it though, even though he didn't state that.

I acknowledged in the answers I gave that they could hire someone else to help them.

 

How, when and where to do the work.

 

Dig a hole, of this size, in that spot there. The only thing that hasn't been specified is, using this spade. And the OP is probably going to supply the spade!

 

How can they have several 'customers' at the same time, £50 to you to dig me a hole, you can't be digging a hole for someone else at the same time.

 

The answer is far from clear, even with you trying to put a massive slant on the answers to suggest so.

[Shef_Fitness]

How much does a person on minimum wage take home?

I bet it is less than £50 a day.

 

 

£6.08 x37 hours = £224.96 a week

£224.96 devide by 5 days = £44.99 (a day)

 

Tax allowance is £8100............£224.96 x 52 weeks = £11697.92

 

£11697.92 - £8100 = £3592.92 and 20% off

 

SO.....£11697.92 - £719 (this does not include NI) = £10978 a year

 

£10978 devide by 52 weeks = £211.12 a week

 

SO each day, if you do the right thing and work 7 hours you will earn the grand total of £42 a day (not including NI to be paid)

 

So the OPs offer of £50 cash in hand is a good offer if you are desperate for cash

[Shef_Fitness]

£6.08 x37 hours = £224.96 a week

£224.96 devide by 5 days = £44.99 (a day)

 

Tax allowance is £8100............£224.96 x 52 weeks = £11697.92

 

£11697.92 - £8100 = £3592.92 and 20% off

 

SO.....£11697.92 - £719 (this does not include NI) = £10978 a year

 

£10978 devide by 52 weeks = £211.12 a week

 

SO each day, if you do the right thing and work 7 hours you will earn the grand total of £42 a day (not including NI to be paid)

 

So the OPs offer of £50 cash in hand is a good offer if you are desperate for cash

 

 

I could be wrong with the £42, but if you go on the premise that after tax you pay about 20%, then 20% of £45 is about £9 stoppages. If this is correbt (my 2nd extimate) then someone working 7 hours a day for min wage will only come out with £36 (thats obscene)

[Cyclone]

I think your first calculation is closer to the mark, you can't ignore the tax allowance.