Recent business startup hiring - how do I pay my employees/freelancers?

[mushyrock]

Hi!

As you read, I have started a business and it's now getting off the ground. I would rather do things myself rather than outsource to save some money (as long as I can do it properly I don't mind spending more time on it than someone I would pay to do the same thing). I was wondering if anyone here could point me in the right direction? I've had a look through this salary calculator and figured out what is coming out of wages, tax & NI contribs, but don't know how to actually pay these! Would it be worth just outsourcing this to an accountant to deal with it? I'm not quite sure what to do so could use some advice.

Many thanks!

[wales01man]

Contact HMRC you need to register as an employer

[ostell]

Then they will provide the documentation and possibly the software (it's been a long time since I had to do this) to do wages and the yearly returns and P60's etc.as long as you do not have too many employees.

Freelancers, who have their own companies, will be paid on the basis on invoices presented to you. Don't fall into the trap of treating people as freelancers when they are actually employed. Lots of fines and costs are a possibility. If you dictate hours of working and where they are employees. If they also work for other people when they like then they are probably not employees.

Once you've started it's easy. Decide a format for your pay slips.

HMRC used to run courses for new employers to shown them the ropes.