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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi , I would like to know for how long I can keep a person

Resolved Question:

Hi , I would like to know for how long I can keep a person in my limited company as self-employed ? I just start trading , and I would like to have some HGV drivers who will work with me . For how long I can pay them as self-employed ? Also , the director of the company can be paid as self-employed ? What about their partner ,if she helps him with the paper work ? Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

[q]
I just start trading , and I would like to have some HGV drivers who will work with me . For how long I can pay them as self-employed ?

[a]
Provided these HGV drivers are self employed and file their tax return every year and account for their Tax and NI, there is no reason why you can't engage them as self emplyed for long time to come. They should have other clients too to justify their status of self employed.

[q]
Also , the director of the company can be paid as self-employed ?

[a]
A director of the company is a company official and employee. He/she can't be paid as self employed.

[q]
What about their partner ,if she helps him with the paper work ?

[a]
In order to be self employed you have to demonstrate that you are a free agent and your own boss. You take risks and bear the cost of making good any losses. You are not tied to one employer/client.

You can certainly have the partner on the payroll and apply PAYE. On the otherhand, You’re exempt from PAYE if none of your employees is paid £111 or more a week, gets expenses and benefits, has another job or gets a pension.

The Employment Status Indicator (ESI) tool enables you to check the employment status of an individual or group of workers - that is, whether they are employed or self-employed for tax, National Insurance contributions (NICs) or VAT purposes. More information can be found here

http://www.hmrc.gov.uk/calcs/esi.htm


I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.

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