subscribe to stafftax
renew stafftax subscription
access-members-area

Agencies with employment law

agency_logo-purple-st_resized.pngmasseys_logo.png
“We have been extremely pleased with the service you have given us over the years and consider it to have been excellent value for money.”
Mrs C A – Whitchurch
Welcome to Stafftax PDF Print E-mail

When you employ household staff in the UK there are numerous issues that you must consider.  As a domestic employer, you have the same legal responsibilities as commercial employers.  But many domestic employers have little or no experience in this role and the prospect of having to deal with both complex and time-consuming legal obligations can be a source of great concern.

Established 20 years, Stafftax is the UK's original domestic payroll service and a valued and trusted name in thousands of UK households.  We can provide you with a comprehensive domestic staff payroll service and help transform the hassle of being an employer into peace of mind.

We act as your agent and we do everything for you, from setting up a PAYE scheme and calculating the correct tax and National Insurance payments, to making sure your employee's payslips are accurate.  When you subscribe to Stafftax you also receive unlimited support and advice on all pay and employment related issues:

As well as a payroll service, our annual Stafftax subscription also gives you unlimited access to our Legal Advice help-line and our legal team work closely with you and focus on finding a solution to your particular situations.  Once you have subscribed we recommend that you take advantage of our Members' Area where you can make changes to your details or those of your employee, send messages, make requests, and most importantly, download your payslips.

 

employment guide

Can domestic staff be self-employed?

"Can't I just ask my employee to sort out their own tax?" this is a question we're frequently asked by potential employers. Whether someone is employed or self-employed depends on the terms and conditions of their work. It is important for all employees to know their employment status as it affects employment and benefit rights, and how to pay tax and National Insurance Contributions.

It is equally important that you, as the employer, are absolutely certain whether it is your responsibility or theirs to declare tax and NI.

How to determine employment status
A worker is probably considered employed if they:

  • have to do the work themselves
  • can be told at any time what to do, where to carry out the work or when and how to do it
  • work a set number of hours
  • can be moved from task to task
  • are paid by the hour, week or month
  • can be paid overtime or receive bonus payments

A worker is probably considered self-employed if they:

  • can hire someone else to do their work or engage helpers at their own expense
  • risk their own money
  • provide the main items of equipment needed to do their job, not just the small tools that many employees provide for themselves
  • agree to do a job for a fixed price regardless of how long the job may take
  • can decide what work to do, how and when to do the work and where to provide the services
  • regularly work for a number of people
  • have to correct unsatisfactory work in their own time and at their own expense

*Please note that these lists are not exhaustive.

The exception to the rule
It is clear to see that in most cases domestic employees do not meet HMRC's criteria for self-employment.

However in some cases HMRC do grant self-employment status to domestic workers. It is very important to remember that if you take on domestic staff who was previously self-employed they should contact the Revenue and request confirmation in writing that their status still applies in the new position.

Transfer of self-employment status between jobs is not automatic, and each situation should be considered individually. This is the employer's responsibility, and if they do not receive written confirmation from the Revenue and it later comes to light that the worker is not self-employed, then it is the employer, not the worker, who will pursued for unpaid taxes. And in the eyes of the law it is a criminal offence not to declare an employee and pay tax and NI contributions on their behalf.

employment costs

National minimum wage & the working time directive

It is a criminal offence for an employer to pay below the national minimum wage, currently carrying a fine of up to £5,000. Domestic staff are however exempt from the measures concerning working hours.

Read more...