According to the tax office there are six things you need to consider when you are employing staff for the first time. They are:

1. Decide how much to pay someone – you must pay your employee at least the National Minimum Wage.
2. Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
3. Apply for a DBS check (formerly known as a CRB check) if you work in a field that requires one, e.g. with vulnerable people or security.
4. Get employment insurance – you need employers’ liability insurance as soon as you become an employer.
5. Send details of the job (including terms and conditions) in writing to your employee. You need to give your employee a written statement of employment if you’re employing someone for more than 1 month.
6. Tell HMRC by registering as an employer – you can do this up to 4 weeks before you pay your new staff.  

If your employee earns less than £111 a week and they don't have another job elsewhere – or other taxable income such as a pension – you don't have to register with HMRC as an employer. It would be prudent to keep a record of the wages you pay.

 As soon as their income exceeds £111 a week you will need to deduct PAYE, and if necessary National Insurance.

 The good news is we offer an outsourced payroll service. So if you are unsure if you should or should not be registered with HMRC, give us a call so we can discuss your obligations in more detail.

ver 450 new businesses every week have been set up over the last year thanks to a government scheme which helps people on benefits to become their own boss.

The New Enterprise Allowance (NEA) helps jobseekers, lone parents and people on sickness benefits with a good idea to set up their own business. New figures published today (19 December 2014) show the scheme has helped budding entrepreneurs set up over 60,000 new businesses, with help from a mentor and financial support payable through a weekly allowance.

 As part of the government's long-term economic plan to create jobs by backing small business and enterprise, the NEA has helped jobseekers of all ages. Over 4,000 young people, over 11,000 disabled people, and more than 14,000 over-50s have been helped to turn their hobbies into businesses.

 Minister for Employment, Esther McVey said:

 Small businesses are what make this country great – with their hard work, creativity, and entrepreneurial spirit they are fuelling Britain's recovery. They are also providing a significant share of new vacancies, contributing to the record number of people who now have jobs.

 As part of our long term economic plan, tens of thousands of new and innovative businesses are now up and running – from milliners to caterers and designers to counsellors – all of whom have benefited from the expert mentors who have given up their time to help the next generation of entrepreneurs.

The scheme has helped set up a wide range of new businesses across Britain, including a designer wedding dress-maker, a catering firm which has catered for big events such as the International Business Festival, and a computer-aided design business, which laser-cuts model aircraft.

 People on the scheme get expert help and advice from a business mentor who will help them to develop their business idea and write a business plan. If the business plan is approved, they are eligible for financial support payable through a weekly allowance over 26 weeks up to a total of £1,274. Participants can also access a loan through the BIS start-up loan scheme. Once a business is up and running, mentors continue to give entrepreneurs on-going support during the early months of trading.

 From the new year, NEA will be extended to give family businesses a boost as the partners of anyone who is claiming Jobseekers' Allowance will be able to apply. The scheme will also be extended to more people on sickness benefits.

 1 January 2015 – Due date for Corporation Tax due for the year ended 31 March 2014.

 19 January 2015 – PAYE and NIC deductions due for month ended 5 January 2015. (If you pay your tax electronically the due date is 22 January 2015.)

 19 January 2015 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2015.

 19 January 2015 – CIS tax deducted for the month ended 5 January 2015 is payable by today.

 31 January 2015 – Last day to file 2013-14 Self Assessment tax returns online.

 31 January 2015 – Balance of Self Assessment tax owing for 2013-14 due to be settled today. Also first payment on account for 2014-15 due today.

 1 February 2015 – Due date for Corporation Tax payable for the year ended 30 April 2014.

 19 February 2015 – PAYE and NIC deductions due for month ended 5 February 2015. (If you pay your tax electronically the due date is 22 February 2015.)

 19 February 2015 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2015.

 19 February 2015 – CIS tax deducted for the month ended 5 February 2015 is payable by today.

 The Government has indicated that it wants to offer more to existing pensioners and people who reach State Pension age before 6 April 2016 when the single-tier pension is introduced.

 To achieve this a new Class 3A voluntary contribution will be available from October 2015 to April 2017.

 The Class 3A contribution will allow people to top up their additional State Pension.

The rate of contribution, which will be a lump sum payment, will be set at an actuarially fair rate that ensures that both individual contributors and the tax payer get a fair deal.

 The scheme will be only be open for a limited period as it is expected that most people who want to take-up Class 3A entitlement will do so in the first few months.

 You may want to consider the effects this may have on your State Pension at retirement.

 If you estimate that your taxable income for 2014-15 will marginally exceed £100,000, perhaps for the first time, you should consider your options.

 If your income does exceed £100,000 then for every £2 that your income exceeds this amount your personal tax allowance will be reduced by £1.

 As the basic personal allowance is £10,000 for 2014-15 this means that when your income is £120,000 or greater, you will no longer qualify for a basic personal allowance. Any steps that you can take to keep your income below £100,000 will potentially save you Income Tax at the marginal rate of 60%.

 For example you could consider negotiating a salary sacrifice arrangement with your employer or additional pension contributions. Maybe, trading salary for non-taxable benefits such as increased holiday entitlement? Further, pension premiums and gift aid payments count as deductions in arriving at your taxable income.

 If you would like to discuss your options in more detail please call.