SarahBell Posted March 27, 2011 Report Share Posted March 27, 2011 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? Quote Link to post Share on other sites
South Lorne Posted March 27, 2011 Report Share Posted March 27, 2011 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..... Quote Link to post Share on other sites
Snugglybear Posted March 27, 2011 Report Share Posted March 27, 2011 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. Quote Link to post Share on other sites
Dave Beans Posted March 27, 2011 Report Share Posted March 27, 2011 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.. Quote Link to post Share on other sites
fadeaway Posted March 27, 2011 Report Share Posted March 27, 2011 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. Quote Link to post Share on other sites
Dave Beans Posted March 27, 2011 Report Share Posted March 27, 2011 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 Quote Link to post Share on other sites
valueofnothing Posted March 27, 2011 Report Share Posted March 27, 2011 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. Quote Link to post Share on other sites
dinker Posted March 27, 2011 Report Share Posted March 27, 2011 If she filled in a P46 then she is employed. Quote Link to post Share on other sites
SarahBell Posted March 27, 2011 Author Report Share Posted March 27, 2011 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. Quote Link to post Share on other sites
jones87 Posted March 27, 2011 Report Share Posted March 27, 2011 Surely you can earn upto £120/week (give or take) before paying any tax/NI? Quote Link to post Share on other sites
longtomsilver Posted March 27, 2011 Report Share Posted March 27, 2011 Surely you can earn upto £120/week (give or take) before paying any tax/NI? £102 is the lower threshold for NI contributions. Quote Link to post Share on other sites
dinker Posted March 28, 2011 Report Share Posted March 28, 2011 £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 Quote Link to post Share on other sites
RichB Posted March 28, 2011 Report Share Posted March 28, 2011 I rather suspect there is something in the rights you accrue. Eg dismissal, training etc. Quote Link to post Share on other sites
Caveat Mortgagor Posted March 28, 2011 Report Share Posted March 28, 2011 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? Quote Link to post Share on other sites
eejit Posted March 28, 2011 Report Share Posted March 28, 2011 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. Quote Link to post Share on other sites
SarahBell Posted March 28, 2011 Author Report Share Posted March 28, 2011 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. Quote Link to post Share on other sites
wolfe tone Posted March 28, 2011 Report Share Posted March 28, 2011 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. Quote Link to post Share on other sites
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