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bigduckontax
bigduckontax, Accountant
Category: Tax
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I'm looking at employing a person from Romania on a self employed

Customer Question

I'm looking at employing a person from Romania on a self employed basis, she has been in this country for about 2 months and has applied for a national ins number but hasn't received it yet.
the question is, can i take this person on self employed and pay her, and what deductions would i have to make
or do i pay her for her hours then its her responsibility to declare her owed taxes at the end of the year
Is she allowed to work before she has her Nat ins number
is there any more advice you can give to this person if they are going to work in the uk about tax
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

You you can take them on and operate PAYE just like any other normal employee. Here is the information from Insight, the University of Gloucestershire [edited] web site:

'Getting a National Insurance number is ***** straight forward: Phone the local Job Centre Plus . They will either send you an application form by post, or ask you to attend an "Evidence of Identity" interview. Your National Insurance Number Card will be posted to your home address. You need to give this number to your employer straight away. The whole process, from initial telephone call to receipt of National Insurance NUmber Card, should take no longer than 6 weeks.

Please note: it is not essential to have a National Insurance number before commencing work. If you supply an employer with your date of birth and your gender, this should enable them to employ you.'

I do hope I have been able to set your mind at rest on this matter.

Customer: replied 2 years ago.

Thankyou for your prompt response, i don't want to take them on as and employee, she will work for me on a self employed basis.

if you could look at the 4 questions again and answer them individually i would appreciate it

Expert:  bigduckontax replied 2 years ago.
You can, of course, take them on as self employed. If so there are no deductions to be made and the must register with HMRC as self employed. Beware of IR35 though. If their work is effectively employment and the definition is exceedingly wide, you must operate PAYE. This is an anti tax evasion initiative. Sorry for missing that point.
Customer: replied 2 years ago.

does she need a tax code in order for me to pay her..? or is it a case she employ's an accountant to calculate her tax at the end of the year,

I work in the building industry, so the construction workers need to have a utr number,

this person will be doing work in the office as an administrator, so will come under a different catagory?

Expert:  bigduckontax replied 2 years ago.

If you take her on under PAYE, yes; you apply using a form P46, part of which they will have to assist you in completion. From what you indicate from you follow up question they will almost certainly be classified as an employee and must be paid within the PAYE envelope. Construction industry employees are an exception and MUST be paid under PAYE irrespective.

If self employed no. There is no need to employ an accountant if their affairs are simple. It is just one entry in the appropriate box of the self assessment tax return which HMRC automatically send out to self employed persons at the end of every tax year.

Here is HMRC's advice on UTRs;

'The Unique Taxpayer Reference (UTR) is only issued by HM Revenue & Customs (HMRC) when you, or your client, have registered for Self Assessment. It is made up of 10 numbers, for example(###) ###-#### ***** can be found on documentation issued by HMRC such as the Tax Return (SA100), a 'Notice to complete a Tax Return' (SA316) or a Statement of Account.

Depending on the type of document issued the reference may be printed next to the headings 'Tax Reference', 'UTR' or 'Official Use'. Please note: If you're self-employed and you register online for business taxes, you will automatically be enrolled for each HMRC Online Service that you selected. In all other cases, you'll need to register with HMRC for Self Assessment and enrol for the online service separately.

If you have not yet registered with HMRC for Self Assessment this must be done to get the reference before you enroll for the online service.'

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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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