Hi folks
Bit of a weird question, but I’m out of touch with these things. (I work as LTD company)
I’m about to take a part timer on to work for me, paid hourly.
I’ll be giving minimum wage at £6.31, how much should he end up with in his pocket if he’s a normal PAYE and NI contributor?
Thanks
Paul
Oooh can already see the keyboards going up in flames on this one.
Under the tax threshold he shouldn’t pay any tax, not sure about Nat Ins though, but you’ll be paying twice what he does.
chicane:
Oooh can already see the keyboards going up in flames on this one.Under the tax threshold he shouldn’t pay any tax, not sure about Nat Ins though, but you’ll be paying twice what he does.
If he’s doing 40 hours a week at minimum wage, he’ll be paying income tax at 20% on almost £3000.
I know but the OP said part-timer which is why I said “under the tax threshold”
Ah - Missed the “part timer” reference. My bad. (God how I hate that phrase).
He will pay 12% of of earnings over £153 a week as NI, which is around 24 hours at £6.31.
He will pay PAYE at 20% on everything over £192 a week.
So, if you employ him for 30 hours a week, he will get £189.30 gross. No PAYE and £7.26 a week NI. (Paying even a small amount of NI may be beneficial in years to come when he needs to qualify for a state pension, if such a thing still exists.)
You should note that PAYE runs April to April, so you could pay him £300 a week until April 5th 2015, and he would still pay no PAYE. NI works differently so it is payable from week one whenever that falls.
You could also note that some allowances like meal allowance if away from base are tax free. This is a subject on which the self employed driver should be an expert:)
Thanks guys, a little over two hours and I have all the information I need.
He will be working less than 24 hours a week, depends a bit on what needs to be done, so under both the thresholds. No away from base stuff so no need to worry about that.
So, this means he will put all the money in his pocket, I get the job done, everyone wins.
Cheers everyone
Paul
PS And not meltdown on the topic, well done.
Don’t forget that you’ll also have to put aside roughly 10.7% of what he earns for holiday pay so £6.31/hr costs you £6.99/hr assuming that he won’t go over the lower threshold for employers NI which is £111 a week. You’ll pay 13.8% of everything he earns above £111 a week in employers NI so once he has done over 17.5hrs and therefore gets above £111 a week it will cost you £7.85/hr to employ him with holiday pay and employers NI.
So up to 17.5hrs he’ll cost you £6.99 an hour to employ. Over 17.5hrs he’ll cost you £7.85/hr to employ.
Have you registered for PAYE as an employer and are you aware that it is now done in realtime so every time you pay them you have to upload the pay info to HMRC?
Have I got this right, your paying someone minimum wage to drive a truck?
Dieseldog66:
Have I got this right, your paying someone minimum wage to drive a truck?
Yep 
From the opening post I gather it’s even his/her truck
The signature of op reads
“Live for today, tomorrow never comes…”
No effin wonder on them wages.
Dieseldog66:
Have I got this right, your paying someone minimum wage to drive a truck?
It doesn’t say that in the op. Maybe he wants someone to sweep the yard, wash his wagon, tidy the workshop and do his ironing.
happysack:
Dieseldog66:
Have I got this right, your paying someone minimum wage to drive a truck?It doesn’t say that in the op. Maybe he wants someone to sweep the yard, wash his wagon, tidy the workshop and do his ironing.
Im guessing its a job for someone whos either a school leaver, or semi-retired. So NMW would be appropriate
This post suggests that you shouldn’t be ‘employing’ anyone if you need to ask questions like this on an Internet forum.
fredthered:
This post suggests that you shouldn’t be ‘employing’ anyone if you need to ask questions like this on an Internet forum.
+1