Employment Advice

T.C.
T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
in General accounting discussion
My client is a sole trader and doesn't employ anyone at present. She wants to take on a lady one day a week (approx £50). The lady already has another job. Does my client need to set up PAYE for this??? Help appreciated.

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  • Janej
    Janej Registered Posts: 50 Epic contributor 🐘
    Hi
    I suppose it depends on her other job and what she earns there. If she uses up her tax allowance at her other job then yes she will need to set up a PAYE system.
    My understanding is that if ALL employees of the business are under the LEL then she does not need to comply with RTI but if just one is over this then RTI kicks in and you need to report on all employees whatever they earn.
    Hope this helps
    Jane
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I thought so. Thanks Jane. I will give my client the bad news!
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    Yes she needs to set up a PAYE scheme as a P46 will be required to show that she has other employment. You then need to use 0T tax code until you here otherwise from HMRC. It does not matter if you know what they earn in the other job you have to follow the correct procedure.
    However, if you know that the earnings for both jobs are below PA then you can advise employee to contact HMRC to split their Personal Allowance between two jobs.

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