08: Employers - points to watch
Employers must take care when taking on people who say they are self-employed. If they really work as employees, the employer will be responsible for paying the NICs that should have been deducted from payments to the worker as well as the employer’s NIC.Other areas that can cause difficulty for employers include:
- Mileage, travel and other expenses payments and allowances.
- Awarding shares to employees.
- Payment of employees’ home telephone bills.
- Use of company credit cards.
- Lump sum payments, such as compensation when an employee leaves.
- Employees working overseas.
- Special calculation rules for directors.
