When to employ is not to employ

[Millay]

I hope this is he right thread to put this into, but am looking for alittle bit of advice.

This is my conundrum:

I am currently trading as a Sole Trader, but have become so busy I want to employee somebody to do paperwork for me, i think this is going to total about 2 hours a week. I have someone in mind who I just want them to do it on a casual basis, they currently have a fulltime job so it would be just a sunday afternoon.

Know paying them cash, is this goign to cause a problem with the tax man, for either of us. Im certianly not going to make them PAYE for 2 hours work a week.

Whats the best way of acheiving this?

Many thanks
Andy

[Flubflow]

They invoice you for their business services. You pay the invoice as you would any invoice.
It would then be their responsibility then to fill in their tax return at the every year simply stating the additional income (less any material expenses) they made over and above their PAYE. They would initially need to ask the IR for the relevent tax return form if they have not normally been recieving one.
I think most people in your position would simply pay the cash out of your own pocket and take the hit in terms of not being able to claim it as an expense because otherwise the person doing the work would probably want more anyway if they then had to pay tax on it.

[Millay]

Thats exactly what i thought thanks for the clarification

[Flubflow]

Another point worth mentioning is that when your paperwork person declares the income on his tax return then his/her employer may find out and ask what it is. I'm not sure whether the person would be obliged to tell the employer (see their contract) but they may be wondering whether there is a possible conflict of interests.
i.e. working for an accountant and then doing people's books on the side might be considered a bit naughty unless they cleared it with their employer.

[SMHarman]

Flubflow - the IR don't inform other employers of other sources of income. This would be a direct conflict to their confidentiality of your records.

Everything else said is about right. You may also want to sign a memo of understanding or a contract for services which states they are self employed providing bookeeping / admin to you and are not your ee.

They will also need to sort out their NI position.