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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

Employing European nationals

Most nationals from the European Economic Area (EEA) can enter and work in the UK without restrictions. You will need to ask nationals from all EEA countries to produce a document showing their nationality since their are specific restrictions for certain nationalities.

Read more...

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...