NI requirement

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RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Mon Jun 02, 14 1:20 pm Post subject:
How will doing this affect his finances & possible educational costs?

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Mon Jun 02, 14 1:43 pm Post subject:

RichardW wrote:

How will doing this affect his finances & possible educational costs?

He currently has no finances really. And I pay his school fees.

What sort of thing do you mean?

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Mon Jun 02, 14 1:46 pm Post subject:

john of wessex wrote:

My brother employs his wife in his business.

Its the sort of arrangement that HMRC look at very hard

So I'd say be very careful

You could transfer the property to a trust so your son can have the income but not access to the capital.

I would be inclined to make it a discretionary trust in case he needs to claim a means tested benefit

They can look, but, tbh we are talking about less than five grand a year. If all he did was cut the grass and cleaned between tenants he would be under paid.

chez

Joined: 13 Aug 2006
Posts: 35935
Location: The Hive of the Uberbee, Quantock Hills, Somerset

Posted: Mon Jun 02, 14 2:12 pm Post subject:

Nick wrote:

We don't have an accountant. My life is very simple. Mostly I'm paye plus rental income an the tax return is simple. Just wondered if I'm missing a trick and it appears I am.

We did have an accountant once. He charged �500 to fill in the form for me but I had to provide all the figures. He offered no advice. More of a robbing bastard, than an accountant, tbh.

I will PM you. If you have a good accountant, he should cover his own costs.

vegplot

Joined: 19 Apr 2007
Posts: 21301
Location: Bethesda, Gwynedd

Posted: Mon Jun 02, 14 2:42 pm Post subject:
As a student he won't need to pay tax (under the PA of �10k and looks like he won't need to pay NI (�153 a week per week). As an employer you may need to pay NI but there's a current exemption up to the first �2k so you should be clear of that was well. I've forgotten the original question so hope this helps.

Cathryn

Joined: 16 Jul 2005
Posts: 19856
Location: Ceredigion

Posted: Mon Jun 02, 14 2:46 pm Post subject:
If Chez et al haven't answered your question I will ask Jack as he has employed his son and my daughter on the farm at times.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Mon Jun 02, 14 8:13 pm Post subject:
If ever you have another similar vacancy I'm happy to undercut. I also have no school fees & pay my own NI...

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Mon Jun 02, 14 10:04 pm Post subject:
You can't undercut, unless the money I pay you then goes to pay his school fees, insure his car or replace my beer.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Mon Jun 02, 14 10:37 pm Post subject:
Is it a zero-hours contract, too?

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Mon Jun 02, 14 10:51 pm Post subject:
Well, yes, but as I'm the worlds greatest employer, I pay the five grand, even if you do zero hours.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Mon Jun 02, 14 10:56 pm Post subject:
I'll have to think about it.

john of wessex

Joined: 18 Jun 2007
Posts: 2130

Posted: Tue Jun 03, 14 8:38 am Post subject:
Can I apply for the job then...............

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Tue Jun 03, 14 9:19 am Post subject:
Are you sure? The pay is only notional and you'd have to put up with an untidy bedroom populated by an Inbetweener.

john of wessex

Joined: 18 Jun 2007
Posts: 2130

Posted: Tue Jun 03, 14 11:30 am Post subject:
Um................ I suggest that HMRC may not look kindly

Pilsbury

Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex

Posted: Tue Jun 03, 14 4:05 pm Post subject:
Doesnt really matter if they dont look kindly so long as its within the rules and law....

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