Is a P46 necessary for casuals, Tim? That should solve the issue? As you know, I am not a payroll massif! I tell client to get one signed for any employee, and then I submit the details within the software
-- Edited by FoxAccountancyServices on Wednesday 20th of November 2013 03:23:44 PM
If someone is not required to register as an employer (ie. they don't pay anyone over LEL etc.) but occasionally through the year pay people for casual labour - what are he record keeping obligations for payments made?
Obviously date and amount paid etc. but what with regards to details of the labourer? I know it is that responsibility of the labourer to take care of their own self employment obligations but does the person paying them have to keep a record of name/address etc. if the labourer does not provide an invoice?
I suppose the danger here is one of appearing to collude in tax evasion. To protect yourself get the client to obtain name, address and UTR of any casual employees. What sort of sector is it? Do you need to consider CIS?
I'd shy away from P46 until you were ready to admit the labourer was an employee. As you'll know, it's been a bit of a minefield forever.
Chrissy your first paragraph intimates employee and your second suggests self employed. Just take my suggestion of CIS as an opportunity if you want to give us more background detail. What sector? Same person time and again?
My understanding if you want to do it right is there are no longer "casual" employees under the RTI regulations. If they are employees they need to be paid under PAYE and all the normal forms need to be completed which means your client will register for PAYE as an employer. It is no longer relevant if they are above or below LEL. If they are sub contractors they will be involved with construction and then the CIS regime applies which is also regulation and form filling with HMRC.
If the person is self employed and providing services to a company then you reach a grey area where I think it remains possible to pay that person as a contractor but you need to make sure they will be seen as a contractor and not an employee. There is no obligation on the company to check the contractors tax status, that is up to the contractor, but the company must make sure the contractor is a contractor and not an employee. Simply employing someone once, or every few months is not a guarantee that they are not an employee, you must make sure they are not "employed". If the person is a contractor I would suggest at the least getting an invoice for the service which should include their name and address. Follow this link: www.hmrc.gov.uk/working/intro/empstatus.htm
