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Home Employers employment guide key points to consider
Key points to consider PDF Print E-mail

Employers of private household staff in the UK have the same legal responsibilities as commercial employers and are required by law to:

  • Register as an employer
  • Set up and operate a PAYE (Pay As You Earn) scheme on the employee’s behalf
  • Keep tax records on their behalf
  • Provide the employee with regular payslips
  • Provide them with an employment contract
  • Pay regular income tax and National Insurance Contributions
  • Pay employer's National Insurance Contributions
  • Submit a Full Payment Submission (FPS) using Real Time Information (RTI) compliant software every time the employee is paid
  • Submit an Employer's Payment Submission (EPS) whenever necessary

These obligations also apply:

  • In short-term employment (i.e. a week or longer)
  • To any employment taking place in the UK - irrespective of the country of origin of the employee or employer

Consider the following:
Failure to submit an accurate FPS every time you pay your employee can result in late filing penalties, which could mount to hundreds of pounds.

Failure to pay all tax / NI liabilities before 19 April each year results in interest being charged on the amount outstanding. All these legal obligations can be not only complex but also time-consuming, especially for a first-time employer. Without working knowledge of the tax system and current employment law, you are entering a minefield. Businesses use skilled payroll, legal and human resources professionals. Now you can too - at a fraction of the price.

 

employment law

Introducing our legal service

Your annual subscription to Stafftax entitles you to unlimited use of our Legal Advice help-line. We encourage you to make as much use of this service as you need to manage your domestic employment relations effectively. If you require clarification or advice about any employment issue, other than payroll, then please call or email the Legal Advice helpline.

The Legal Advice helpline is available to you as an employer and is not available to your employee as this may cause a conflict of interest. However, if you wish to make an enquiry to assist your employee, you may call on their behalf.

What we do
Rather than simply explain what you can and cannot do, our legal team work closely with you and focus on finding solutions to your particular situation and problem. We accept and reply to email enquires and will also offer help with drafting letters (should you require it) at no additional charge to you.

Additionally, should you find yourself in a particularly difficult situation and need more help or support over and above that provided by your subscription, we can arrange for you to meet with a member of the legal team in person and for a special member’s rate they can help resolve the matter directly.

employment costs

An example: a net wage agreement can be costly

By agreeing a net wage with your employee you are effectively agreeing to pay all their taxes, irrespective of their tax code or tax position.

Read more...