Forum

• # 86904
• Tue 27 Nov 2012 04:12 PM

Hi all,

I am currently studying my payroll exam but got to thinking about a famility member who is a sole-trader & employs another family member, currently under the age of 16, to work Saturdays.

Am I right in thinking that currently, the sole trader does NOT have to regsiter with the HMRC as an employer as the Saturday girl does not paye NIC as she's 15 & certianly earns below the tax threshold?  

If I am correct in my above assumption, what about when RTI comes in to play next April? It states that you have to do online submissions even if the employee is below the NIC LEL....does this mean as soon as the Saturday girl turns 16 & gets a NINO the sole trader will need to starting running payroll?

Any thoughts & guidance greatly received.

Thanks in advance,
Jo        

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• # 86910
• Tue 27 Nov 2012 09:32 PM

Hi Jo,

Having attended a seminar at HMRC office in Dundee last week I brought this matter up with them as I have a few clients who are not registered as employers because the staff are paid below the threshold for tax & NI.
They were quite clear in their answer:
You do not have to register as an employer providing the staff are paid below the threshold, do not have another job, do not receive benefits and do not receive a pension or any other type of income.
The only time an employer has to include staff who are either temporary or in your case Saturday workers is if they are already registered as an employer and have other staff that are paid over the threshold and the business already pays PAYE & NI.
However, in your scenario the 'employer' still has to have a P46 completed and kept on file and also proof of identity which can either be a birth certificate, passport or driving licence (both copies).
Hope this answers your query.
Regards,
Marilyn    

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 86928
• Wed 28 Nov 2012 09:36 AM

Thanks Marilyn, that answers my query perfectly!!!

All the very best,

Jo
  

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