96% of all UK private sector businesses have fewer than 10 employees and there are also 4.2million businesses in the UK with no employees at all.*
Employing staff is a big deal for the vast majority of small business owners across the UK.
For most people, it’s a calculated risk and part of growing a business, increasing the profits, and, importantly, creating an asset that can be sold in the future when the owner wishes to move on or retire. However, it’s also a huge responsibility for most people. Offering work to an employee is often life-changing for them and their family and no reasonable individual undertakes this responsibility lightly.
So, the thought of adding a new employee to a business is often worrying as well as exciting and therefore at CJ Bookkeeping we want to make this experience as easy as possible.
Let’s take a recent example. Chris Hooton from Orchadis Publishing Ltd has been running a copy writing and email marketing business for over twelve years. He has largely worked on his own or in partnership with other micro businesses on joint projects including working with web design companies, graphic designers, photographers and business development coaches etc.
He met a business colleague at a networking meeting whose daughter, Daisy, was working in the marketing department of a university but who was keen to learn more about marketing in a private company in the commercial sector. This discussion coincided with the development of Chris’s email marketing online training course and he wondered if Daisy might be interested in helping him road test and develop his course.
Chris’s many years writing about payroll challenges, high staff turnover, auto enrolment, pension contributions and HR issues had made him extremely wary of employing staff and he almost vetoed this project before it started but, fortunately, Clare at CJ Bookkeeping was on hand to offer some brilliant advice.
She explained how she could look after all of these employment headaches for him.
To begin with, she registered Chris as an employer with HMRC. Although Daisy was happy to work solely for the commercial experience, Chris wanted to pay her for her time and Clare clarified that, as she was between 21 and 24, the minimum wage would be at £7.38 per hour.
Clare then supplied an employee form for Daisy to fill in and submitted this to HMRC. Clare then set up and ran the CJ Bookkeeping software designed to manage the monthly payroll process for Orchadis Publishing Ltd which was then submitted to HMRC. Clare also provided a monthly payslip for both Daisy and Chris detailing her wages paid, any tax liability breakdown and any pension contributions.
“The whole process was incredibly easy,” says Chris Hooton, Managing Director of Orchadis Publishing Ltd. “I could devote my time to working on my training course with Daisy while Clare took care of everything else. The only task I had to undertake was to pay Daisy her weekly wage every Friday via BACS transfer and potentially to pay a single monthly payment to HMRC if required. I really enjoyed employing Daisy and, by the end of the contract, we had massively improved my training course. CJ Bookkeeping made employing my first employee incredibly easy.”
Looking to employ someone or to grow your business further? Talk to Clare on 01327 262453 or firstname.lastname@example.org about managing the whole process for you, leaving you free to work on your business…
*House of Commons Library Briefing Paper No SN06152 12:12:2018: https://researchbriefings.files.parliament.uk/documents/SN06152/SN06152.pdf