July 9th, 20156 Things to remember as a sole trader employing a family member
Do you realise that as a sole trader you can employ a family member?
There are some key things to remember if you decide to do this:
- You must make sure that your rates of pay are commensurate with the duties being performed – take a look at hourly market rates for similar jobs if you went via an agency. There is a good argument to pay a higher rate than the market to reflect things like :
- duties being performed during unsociable hours
- a high level of trust may be required and a family member can be relied upon to work diligently
- work can be discussed outside normal hours, providing greater flexibility
- Ensure tax and NICs are paid unless the family member is self-employed
- If family member is self-employed then invoices must be raised and it is best to tag them to specific/defined projects with an agreed rate
- Invoices must be physically paid and it’s best not to use a joint account
- Remember that the recipient will be liable to tax and responsible for ensuring that they sort this out themselves
- Be aware of following working time regulations for young people, you can employ a young person if they are over 13
If you would like to discuss this in any more detail, please do not hesitate to contact us.
