Recruitment – It’s family business

Do you have a member of the family (over 16 years old) who has a few hours a week spare and would benefit from a few extra pennies? When taking everything into account, it could be worth considering.

Let’s look at everything involved when taking on a new employee:

  • Check if the person is eligible to legally work in the UK
  • Ensure you are paying at least the minimum national wage as defined by current law
  • Register the person for PAYE with HMRC, if they are not already
  • You then become responsible for calculating and deducting PAYE and NIC AND making payments to HMRC under the RTI (Real Time Information) system on behalf of the employee.
  • You are also responsible for providing your employee with a payslip
  • Keeping accurate payroll records is a legal requirement AND they must be kept for a minimum of three years, including records of expenses and benefits

When employing family members it can be a win-win; it can reduce the overall household tax bill with little to no administration and take advantages of lower rates of tax as well.

Again, there are a few requirements:

  • The family “employee” must be over 16years
  • They must carry out actual work AND be paid a commercial wage for doing so

In 2013/2014 a family employee can earn more between £109 and £148 a week and not have to pay NIC. Similarly you as an employer will not have to pay employers NIC.

And let’s face it, better the devil you know!

For more information


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