Monthly Archives: May 2021

Terminating a contract – what if your worker is only part-time?

Originally written by Peter Done on Small Business
We use a self-employed cleaner who comes in three-four hours during office hours on a Friday. This is no longer suitable and we have an alternative company ready to deal with it. What, if anything, do we need to be aware of before terminating the existing cleaner’s services?
Status of employment: There are a number of issues raised by your question. The first is whether the cleaner is actually self-employed (working under a “contract for services”) or in fact your employee (working under an “employment contract”).
There is no detailed definition of who is an employee incorporated into the legislation and even if the employer pays the PAYE and NI they may still be able to establish that there was no employment relationship but this is more common in the construction industry. Some guidelines for the purpose of determining employment status have now been laid down in various cases over the years. The factors which have emerged from those cases are summarised below and are based on whether the individual is in business on their own account, which requires a determination of who controls the work done particularly with respect to the right to delegate,

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List of small business associations and networking groups

Originally written by Aaron Hurst on Small Business
The advice on offer will depend on whether the small business associations are national or local, focused on one specific industry (such as a trade association) or a generalist (e.g. a chamber of commerce).
For readers interested in taking advantage of the support offered by such groups, here is our list of UK small business organisations – many of whom we regularly work with when creating our advice articles and guides.
Any additions or updates gratefully received. See our contact details section to get in touch.
UK small business associations
Name: Association of Independent Professionals and the Self Employed
Website: ipse.co.uk
Mission: Empowering, protecting and connecting our members for success, making IPSE the association of choice for the self-employed.
Description: IPSE is a not-for-profit association that represents freelancers, consultants, contractors and others following the self-employment route. Benefits of membership include: tax and legal helplines, contract review service, discounts and deals on third-party services such as insurance, a group pension offer, and various guides and events.
Name: British Chambers of Commerce
Website: britishchambers.org.uk
Mission: “Our network exists to support and connect companies, bringing together firms to build new relationships, share best practice, foster new opportunities and provide practical support to help member businesses trade

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Mileage allowance in the UK – what is it and how does it work?

Originally written by Katerina Nicolova on Small Business
Providing mileage allowance for employees who drive for work has become more popular in recent years. But with HMRC’s many rules, it can be confusing for employers and employees alike how this process works. This article will guide you through the main rules you should be aware of as an employer paying out mileage allowance, as an employee receiving the payments, and as self-employed – claiming deductions.
Mileage allowance for employees
My employees use their private vehicles for travelling for business. Do I have to provide them with mileage allowance payments?
As an employer, you are not obliged to pay a mileage allowance to your employees. However, many choose to reimburse their employees for business mileage, as anything paid under or at the same level of the approved mileage rates from HMRC is not reported to the authority.
Your company can choose to pay the exact amount of mileage allowance as stated by HMRC, less or more than it.
If you pay more per mile than the approved rate, the excess sum will be considered as personal benefits for your employee and they’ll have to pay tax on that amount.
To pay out MAPs (mileage allowance payments), your employees

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