The legal requirements for employing home news deliverers.

 

Since April 2015 the old P45s were phased out as Real Time Information came into play. This means for all employees aged 16 or over you should:

  • Check the details of all employees you pay, including those who earn below the NICs lower earnings level.
  • Send to HMRC the PAYE details by completing a FPS (Full Payment Submission) each time you make a payment to an employee. The FPS will include the amount you pay, all Income Tax, NICs and other deductions, such as student loans, it will also include any starters or leavers.
  • Include the details of all employees you pay, including those who earn below the NICs lower earnings level.
  • Complete a starter checklist if no P45 is provided.
  • Children under 16 don’t pay National Insurance, so you only need to include them on your payroll if their total income is over their Personal Allowance.
  • You no longer submit an end of year return, but you will still have to issue P60’s. You continue to give your employee a form P45 when they leave but you no longer send forms P45 or P46 to HMRC as this information is now part of the FPS process.
  • If they use their own vehicle, it is at the discretion of the employer if they pay the standard mileage rates.

National Living Wage and National Minimum Wage

The new National Living Wage came into effect in April 2016. This means that ALL employees who are 25 years old or above are entitled to be paid a minimum hourly wage. For those delivery staff that are paid hourly you will need to ensure that the average time taken to do the deliveries complies with both the National Minimum Wage (NMW) and the National Living Wage (NLW) where appropriate: If you pay your staff on a pence per copy basis you may need to adjust the rounds or payment to ensure that you are fulfilling your legal obligations.

For example, a 26 year old being paid 30p/copy would need to be able to deliver a minimum of 25 copies in an hour to ensure they were being paid the NLW (contributions towards fuel, etc, must be paid in addition to this).

A 16 year old, however, would only need to deliver 14 newspapers in an hour to hit their minimum pay threshold for NMW.

To find out more or to check if you’re paying your staff the correct amount, visit
www.gov.uk/national-minimum-wage/employers-and-the-minimum-wage

As of 1st April 2018, the National Minimum Wage and Living Wage hourly rates are as follows:

Age Range Hourly Rate from 1 April 2018
Aged 25+ £7.83
Aged 21-24 £7.38
Aged 18-20 £5.90
Under 18 £4.20
Apprentice* £3.70

*Apprentices are entitled to the apprentice rate if they’re either aged under 19 or 19+ and in the first year of their apprenticeship.

 

The following rates come into effect on 1 April 2019:

Age Range Hourly Rate from 1 April 2019
Aged 25+ £8.21
Aged 21-24 £7.70
Aged 18-20 £6.15
Under 18 £4.35
Apprentice* £3.90

*Apprentices are entitled to the apprentice rate if they’re either aged under 19 or 19+ and in the first year of their apprenticeship.

 

As an employer, you need to make sure you’re paying your staff correctly, as the Government has committed to stronger enforcement across the UK.

We would advise any members who need to make staff changes as a result of the recent legislation to contact the NFRN Legal Helpline on 0330 303 1457 and ask for employment advice.

PAYE and payroll for employers

As an employer, you normally have to operate PAYE as part of your payroll. PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.

Visit https://www.gov.uk/paye-for-employers for more information.

 

Important to stay legal when employing delivery staff

The NFRN’s employment specialists JEL has produced a checklist which sets out the important factors that tribunals would look at when determining if news delivery staff are employees or self-employed. Read more

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