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Employing staff - PAYE or sub-contract?

Posted by David Seller on April 13, 2013 at 10:17am

We're currently running two teams. We have two employees and a sub-contractor that we use regularly as well as myself. I've become increasingly aware that my sub-contractor could at any time move on to private work of his own and so i'm thinking of taking on a permanent member of staff to ensure I can fulfill future bookings.

My concern is that, I don't want to commit myself to a wage bill that I could struggle the winter months. So my question is, is it better to employ staff to grow my business or use sub-contractors during busier periods?

Interested in hearing other peoples experiences.

Cheers

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  • PRO
    Brian www.mibservices.co.uk April 13, 2013 at 10:57am
    Might be worth thinking about part time temporary / seasonal staff to start off with and if your subby goes off on his own you have a part time employee ready and waiting in the wings.Really depends on your work flow at the end of the day.
  • Colin Hunt April 13, 2013 at 12:44pm

    We go four, sometimes five April - Oct. Three in the winter, suites me. Any more and the 'office work' begins to take you over and you (probably the most productive!) end up doing less.
    A point to remember is that should the HMRC do a check and decide you should have been employing the self employed worker, you will be liable for the employers part of National Insurance - about 12% of what you have paid him over the past 6 years(I think).....expensive!

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