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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15301
Experience:  International tax
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Hi, I have just taken on a part time person who is a single

Customer Question

Hi, I have just taken on a part time person who is a single father of three children school age. He lives in a council house and was claiming job seekers allowance but since starting for me he is going to claim working families tax benefits to make up his part time salary from me. I will be paying him £7 per hour. How much can he earn from me before paying tax and national insurance. I also do not want to get into paying employers tax contributions. Also is there any obligations that I have to notify any agencies that he is currently now employed part time by me. Either way do I have to have payrol for him and does he have to have a payslip if he pays tax or not. His hours will be under 16 per week.
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
If you employ someone on a casual, temporary or part-time basis, by law you, the employer must:
deduct tax and National Insurance contributions from their wages
give them payslips
deduct student loan repayments, if relevant
give them form P45 when they leave
give them form P60 at the end of each tax year if they still work for you
Everyone gets a personal tax-free allowance (basic Personal Allowance is £10,000 in 2014 to 2015). They do not pay tax on anything they earn below this amount.
The National Insurance they pay depends on their earnings or profits and whether they've reached State Pension age. They do not pay any if they earn less than £153 a week (for the 2014 to 2015 tax year).
If they remain at the rate of income you state, you would not need to register with HMRC as an employer unless they have another job.
Ringing sometimes can be frustrated but HMRC has a page on their site that covers most questions for employers:
http://www.hmrc.gov.uk/newemployers/
Customer: replied 2 years ago.

Thankyou, they will not be paid no more than the £153 a week so will i still need to give them a payslip! Or a P45

Expert:  TaxRobin replied 2 years ago.

Hi Steve,Yes, you will still need to issue a payslip and if they leave your employ you will need to issue a P45.

Expert:  TaxRobin replied 2 years ago.
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