A Lynn tax specialist is urging small local business owners not to let paperwork oversights give them a costly headache if they take on temporary workers this summer.
Simon Hunt, who runs TaxAssist Accountants in King’s Lynn Innovation Centre, said: “Local small businesses will be taking on temporary staff throughout this summer and with seasonal pressure on employers’ summer holiday rotas and work schedules, it could be tempting to pay workers cash in hand to cut costs.
Simon said: “Employers who scrimp on the paperwork run the risk of hefty financial penalties. Generally, you should follow the same procedure for temporary or student workers as you do for new full, or part-time, workers.
“If a P45 is missing, a Starter Checklist – formerly the P46 form – must be completed and if the employee’s income is more than £157 a week, employers must account for National Insurance. If they earn more than £958 a month on average, they must also pay income tax.
“Employers must also make sure that employees are paid the minimum wage appropriate for their age and circumstances. Since April 2017, over-25s have been entitled to a minimum of the National Living Wage of £7.50 per hour.
“HMRC will hold employers liable for any shortfall in tax or pay, and any short-comings in their records.”
TaxAssist Accountants King’s Lynn is a local business providing tax and accountancy advice and services purely to small businesses.