NIC contributions adhoc employee
Postby Eg95 » Mon Feb 07, 2022 11:09 pm
Hello,
I run my own business as an individual on the side while being fully employed in another business. In my own business, I have gone over the £1k trading allowance this tax year Apr21/22 so will file for a self assessment before Oct 5th 2022.
I am wondering, if I were to employ someone for a weekend to help with the business, what the tax implications would be?
Would it be that aslong as I'm not paying them over £737 per month, I wouldn't need to pay National insurance on their behalf as an employer?
I wouldn't pay this much anyhow as would keep the wages that of what a usual days work would be keeping at arms length. And keep a record of the hours worked on a spreadsheet for a record on file.
Would this be allowable as a business expense as wholly exclusively paid in relation to the business and once paid through the business bank account, code this in the accounts as a wages expense?
This would be an adhoc wages paid to a family member. I would be interested to know when/if I'd need to use any special payroll software or platform for this.
I currently do my accounts through xero and plan to use this along side my regular employment payslips PAYE to calculate how much tax I need to pay.
I believe the amount of NIC I will need to pay HMRC will calculate after I'll submitted my self-assessment tax return?
Any information on this would be greatly appreciated.
Many thanks,
Edward