I was intending to pay him every year. But I want to pay him in the most tax efficient and easiest way. He does a considerable amount of work that I would have to sub contract if he did not do it. He is a kleeneze retailer. I was planning to pay him around £8000 a year
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I asked an additional question below, but it seems to have gone to another question?
But because he only does this for me. Wouldn't it have to be considered as employment?Could I pay him a monthly sum or would it have to be per job completed?
That is not really what I asked. I wanted the easiest way possible without having to run a monthly payroll or do invoices etc. To do that I may as well just employ him as it is going to be as much work. Can I just pay him as an employee but pay it as a lump sum once a year or something along those lines?
Caroline, thank you for your reply.If you have him as an employee, you have to operate a PAYE scheme.You’re exempt from PAYE if none of your employees is paid £112 or more a week, gets expenses and benefits, has another job or gets a pension. However, you must keep payroll records.More information on running a payroll can be found herehttps://www.gov.uk/running-payrollYou can still pay him a lump sum once a year even if he is self employed. The payment terms and arrangement are negotiated between the parties to the agreement.I was suggesting you an arrangement that is workable, simple and does not involve running a payroll or collecting many invoices. One invoice from your husband to your business would suffice.I hope this is helpful.