Employing staff

[Vendition Ltd]

Could the people who employ staff for their vending business please either pm me or post on here how much they pay there staff?

Do you pay an hourly rate or by pot sold so a commission rate?

Do you supply the vehicle or dontheybuse there own?

Do you pay them cash in hand? As I'm guessing most would prefer this

Many thanks

Ross

[Rossi fan]

Hi Ross,

I have done this and it did not go that well. If you don't employ them properly, you are taking a big risk. Firstly, you need to have employer Liability cover and this is invalid if you are not their employer. Similarly, if you pay someone cash in hand, you could be fined £1k per day by HMRC. Don't take my word for it, contact your accountant and HMRC.

I wanted to employ a self employed neighbour when I was in hospital and recovering, but because he was servicing my machines, with my stock and I was telling him when to go out, that makes him an employee. I asked HMRC if I could send him out in his van, but they said no.

If you do employ someone, you will need to agree stock levels both at the beginning and the end of the period, as it is easy to get away with murder.

I hope this is helpful,

Cheers,

Paul

[PGBrew]

Hi Ross,

If you rent out the machines to someone else, sell them stock, they will then be able to plan their own refilling of the rented machines on a self employed basis. This way you will be able to avoid employing anybody and they will be responsible for their own insurance, vehicles etc. you can then work out a price for stock + rent, that would leave them with 15-20% GP.

[Rossi fan]

Hi Ross,

If you rent out the machines to someone else, sell them stock, they will then be able to plan their own refilling of the rented machines on a self employed basis. This way you will be able to avoid employing anybody and they will be responsible for their own insurance, vehicles etc. you can then work out a price for stock + rent, that would leave them with 15-20% GP.

That's ok Pete, but he would need to have a legally bound contract.

Paul

[PGBrew]

The most important thing is to get someone you can trust. A verbal agreement would be enough. There isn't the money for legal docs.

[Vendition Ltd]

Thanks Paul and Pete, looks like its a lot more complicated than I thought, will do a little more research. There must be people on here who do employ staff but guess they aren't willing to give me any advice

Regards

Ross

[sadler2886]

Thanks Paul and Pete, looks like its a lot more complicated than I thought, will do a little more research. There must be people on here who do employ staff but guess they aren't willing to give me any advice

Regards

Ross

hi ross, i employ my dad as a driver, the accountant has put him on the books so he gets a wage slip etc every week and i pay him cash every week. i also have my uncle down as an employee also on the books but i dont actually pay him its purely done to claim his wages back against tax although i dont give it him.

regards
rich

[part-time-operator]

cheers rich...it is a cash business afterall.... how are you getting round the NI contributions? or you don't mind paying them because it's family?

[sadler2886]

I only pay them the maximum allowed before they go over the threshold for having to pay ni contribution so dont have to worry.

[Rossi fan]

Hi Ross,

Whatever you do, you need to get employer liability cover because this covers you if your employee gets hurt. If you don't have it, they could in theory sue you for a big sum. The other thing you must nail down is stock control, as it is so easy for your employee to make extra cash by fiddling the amounts sold . Always consolidate the cash against receipts as soon as you get the money.
Cheers,

Paul