A client wants to take on some family members as part time employees, just a few hours a week. They are a limited company. Is there anyway she can pay them cash without having to put them on a payroll?
It is my understanding that she should put them through payroll even if they are being paid under the PAYE & NI threshold.
If they're working for the company and they're paid below the lower earnings limit of c. £100/week and they don't have another job then probably there isn't much of an issue. The client would still need to register as an employer, I think, but they'd just have to keep P46s on file and not file them with HMRC unless anyone exceeded the LEL or got a job elsewhere. And the client would have to file a nil P35/P14 return each year.
Bear in mind that the moment ANY employee (including the director) exceeds the LEL, ALL employees regardless of amount paid must be reported to HMRC at year end, either via P14 or P38A.
