8 Hours Employment Best For Employers?

[SarahBell]

Friend has been offered a job - 8 hours only though - she needs to work at least 12 though else she'll be massively worse off by working.

She's not able to work for this company for 12 hours - they're claiming it's because they'll have to pay tax for employing her for that many hours so want to keep to employing people for 8 hours only.

Is this the case? (I'm assuming it might be NI rather than tax - but the whole employment tax regime goes over my head so who knows)

Does the UKs tax regime actually make it better for companies to employ people for such limited hours or is this employer taking the pee?

[South Lorne]

Friend has been offered a job - 8 hours only though - she needs to work at least 12 though else she'll be massively worse off by working.

She's not able to work for this company for 12 hours - they're claiming it's because they'll have to pay tax for employing her for that many hours so want to keep to employing people for 8 hours only.

Is this the case? (I'm assuming it might be NI rather than tax - but the whole employment tax regime goes over my head so who knows)

Does the UKs tax regime actually make it better for companies to employ people for such limited hours or is this employer taking the pee?

...if it is the case it's probably cheaper to hire five people to do 8 hours each and let benefits look after the rest for the employees...time IDS looked into this.....

[Snugglybear]

Friend has been offered a job - 8 hours only though - she needs to work at least 12 though else she'll be massively worse off by working.

She's not able to work for this company for 12 hours - they're claiming it's because they'll have to pay tax for employing her for that many hours so want to keep to employing people for 8 hours only.

Is this the case? (I'm assuming it might be NI rather than tax - but the whole employment tax regime goes over my head so who knows)

Does the UKs tax regime actually make it better for companies to employ people for such limited hours or is this employer taking the pee?

I think Tax and NICs are based on pay, not hours. Tables for 2011-12 are here

http://www.hmrc.gov.uk/paye/rates-thresholds.htm

The number of hours per week that makes a difference to benefit entitlements is 16 hours.

So I've no idea what the employer is talking about.

[Dave Beans]

I think Tax and NICs are based on pay, not hours. Tables for 2011-12 are here

http://www.hmrc.gov.uk/paye/rates-thresholds.htm

The number of hours per week that makes a difference to benefit entitlements is 16 hours.

So I've no idea what the employer is talking about.

The JC will then get all of it (minus a fiver) up to the threshold if your benefit..

[fadeaway]

I thought it was the other way around - if you work more than 12 hours you lose your benefits.

Most of my mates only work 10 hours or so a week because of this.

[Dave Beans]

I thought it was the other way around - if you work more than 12 hours you lose your benefits.

Most of my mates only work 10 hours or so a week because of this.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018757

[valueofnothing]

Its employer's NI. Not payable if the employee is counted as self employed and presumably the employer believes in this case4 it can more easily get away with describing its workforce as self employed if they work a short number of hours.

[dinker]

If she filled in a P46 then she is employed.

[SarahBell]

If she filled in a P46 then she is employed.

She's not done that!

She was offered the job at 8 hours and asked if she could have more hours. The big boss man he says no, he only wants to employ people for 8 hours max.

[jones87]

Surely you can earn upto £120/week (give or take) before paying any tax/NI?

[longtomsilver]

Surely you can earn upto £120/week (give or take) before paying any tax/NI?

£102 is the lower threshold for NI contributions.

[dinker]

£102 is the lower threshold for NI contributions.

Correct. assuming she`s on something around NMW then I don`t see how 12 hours would bring her anywhere near the thresholds:

http://www.hmrc.gov.uk/paye/rates-thresholds.htm

[RichB]

I rather suspect there is something in the rights you accrue. Eg dismissal, training etc.

[Caveat Mortgagor]

Friend has been offered a job - 8 hours only though - she needs to work at least 12 though else she'll be massively worse off by working.

She's not able to work for this company for 12 hours - they're claiming it's because they'll have to pay tax for employing her for that many hours so want to keep to employing people for 8 hours only.

Is this the case? (I'm assuming it might be NI rather than tax - but the whole employment tax regime goes over my head so who knows)

Does the UKs tax regime actually make it better for companies to employ people for such limited hours or is this employer taking the pee?

Reading this thread made me think of the game 'chinese whispers'.

The person hiring her probably doesnt know the real reason. I'm afraid there isnt enough information here to answer your question.

I'm amazed that no one has addressed the question of why an extra 4 hours makes all the difference? Do we have some other incentives/disincentives coming into play here?

[eejit]

On a similar note, i have noticed some companies only offering people part time contracts, eg 16 or 20 hours. the extra hours are available if the staff want to work them as "over-time" at the standard hourly rate.

The benefit to the company i see, is that when people are on holiday or off sick, it costs 16hrs pay not 40.

[SarahBell]

I'm amazed that no one has addressed the question of why an extra 4 hours makes all the difference? Do we have some other incentives/disincentives coming into play here?

She's tried to work out whether she's better off but is convinced at 8 hours she'll end up not being able to claim council tax rebate... I've not got a clue either though.

The boss just sounds like he probably uses all sorts of excuses to avoid stuff though so she's probably best not working for him anyway.

[wolfe tone]

On a similar note, i have noticed some companies only offering people part time contracts, eg 16 or 20 hours. the extra hours are available if the staff want to work them as "over-time" at the standard hourly rate.

The benefit to the company i see, is that when people are on holiday or off sick, it costs 16hrs pay not 40.

Spot on! probably why they were offered an eight hour contract,zero hours is becoming quite popular too.