EMPLOYERS have been warned not to skimp on the paperwork if they take on temporary workers this summer.
Some 32,600 students are expected to look for temporary work in Yorkshire this summer – while HM Revenue & Customs has clamped down on record keeping as part of efforts to tackle tax evasion.
Nick Brook, of TaxAssist Accountants in Lockwood, said: “Given the relatively short period employers have students working for them over the summer, it can be tempting to pay workers cash in hand to cut costs and avoid paperwork, but employers who don’t comply with employment law run the risk of both civil penalties and criminal convictions.”
A student earning less than £102 a week does not need to go on the payroll, so no PAYE or National Insurance needs to be deducted.
If they earn more than £102 a week but less than £136, they should be added to the payroll as they have to be reported on the year end form P35.
At more than £136 a week, National Insurance starts to kick in. If they earn more than the Personal Allowance of £7,475 a year or work in term-time, normal payroll procedures will apply.