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bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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If I employ someone for 3 hours per day at £25.00 per day,

Customer Question

If I employ someone for 3 hours per day at £25.00 per day, 6 days per week, will he have to pay tax? And what is the position regarding National Insurance contributions?
Thank you.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Providing there is no other source of income they will not be liable for Income Tax as the income is below the personal allowance of 10K.

NI contributions do not kick in until the employee earns more than GBP 153 per week. Your employee just skids under the wire!
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3814
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Expert:  Sam replied 3 years ago.

Hi

 

 

My name is XXXXX XXXXX I apologise for interjecting, but whilst the employee does not pay and National Insurance of income less than £153 a week, the employer pays a contribution for any income in excess of £111 a week, which this exceeds (as you will pay the employee £150 a week)

 

 

I thought I had better advise you of this, in case you were not aware

 

 

Link here for the National Insurance contributions rates from the HMRC website

 

http://www.hmrc.gov.uk/rates/nic.htmSee Lower Earnings Limit - Primary Class 1

 

Thanks

 

Sam

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