|“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
|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 self-employed if they:
*Please note that these lists are not exhaustive.
The exception to the rule
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.
|Basic document checks|
According to the Asylum and Immigration Act 2006 all UK employers have a legal duty to make basic document checks on each person they intend to employ in order to establish that they have a right to work in the UK and are here legally.
|Benefits in kind|
Benefits in kind are sometimes provided by the employer in addition to the employee's salary. They are often taxable benefits and must be reported annually as part of employee's gross earnings.