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Cleaning Agency - Employee or not?

leec1234
Posts: 1
Joined: Fri May 19, 2017 4:26 pm

Cleaning Agency - Employee or not?

Postby leec1234 » Fri May 19, 2017 4:31 pm

Hi, I am seeking some advice, regarding whether the following is legal or not?

Basically, i'm looking to create a quick startup system for those that want to start a small cleaning business. I started one for my wife a few years ago, of which we sold the business when it got to a certain size. We didn't employ anyone, but that would have been the next logical step.

Since then, on my research, i've found a guy who's created a book on setting up a cleaning agency. He suggests that each cleaning customer has a relationship with their cleaner directly and they pay them every week in cash. The cleaning agency is not the employer; merely someone that ensures their house is cleaned to the right standard every week. The customer then pays the cleaning agency for the privilege of finding them the cleaner, setting it up and ensuring that they get a replacement cleaner when the incumbent is ill or on holiday. This retainer fee is an ongoing fee paid directly to the cleaning agency.

Effectively, the setup is this: The customer pays the cleaner in cash every week, and also pays via standing order to the cleaning agency, a small additional amount paid every quarter.

Is this still legit under HMRC rules? It seems there are a lot of cleaning agencies that do this, but i don't want to provide advice if it is defunct or indeed not morally correct.

If you know the answer, I'd love to know!

Many thanks,

Lee

GlobalTaxAdviser
Posts: 483
Joined: Fri Dec 05, 2014 1:18 am

Re: Cleaning Agency - Employee or not?

Postby GlobalTaxAdviser » Sun May 21, 2017 10:13 pm

Hi

On prima facie the arrangement is seems legitimate for tax purposes as you mentioned the relationship is between the customer and cleaner and they pay you commission / arrangement fee.

Nice to see someone is looking at the moral aspect as well. Wish all the best with your new venture

Kind Regards

GTA


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