If you are going to struggle with your workload over the summer, why not consider hiring in some helpers? Particularly if you happen to have a couple of teenagers hanging around your house complaining of being bored.

From a tax perspective, paying your children to take on menial tasks over the Summer is a great way to pass cash on to your children while reducing your tax bill and getting someone-else to do the filing or answer the phones for you.

As an employer you will be entitled to claim tax relief on the salary that you pay them, but you must make sure that the salary is commensurate with the duties that they are carrying out. You will also need to ensure that you do not fall foul of the National Minimum Wage, currently £3.72 per hour for under 18s (see all of the rates at https://www.gov.uk/national-minimum-wage-rates), although it is worth remembering the National Minimum wage does not apply to children under the school leaving age.

You can employ children from the age of 13 as long as the work is safe and does not involve any heavy lifting. There are several restrictions regarding what hours and when a child can work, with strict maximum working hours, so it’s worth doing your research (you can find detailed guidance at https://www.gov.uk/child-employment/restrictions-on-child-employment). But if you are simply planning to get your own children to undertake some basic administrative duties from your home office, the process should be relatively straight forward.

If you are considering hiring students over the summer holidays then you need to be aware that the Payroll processes have changed. Previously an employer could submit a P38(S) to ensure that tax did not need to be deducted for employees earning over the threshold over the holidays only. This process no longer applies and students will need to be treated like all other employees, having tax and national insurance deducted when their earnings exceed the thresholds in any one month.

Whilst it is not mandatory to run a PAYE scheme and register with HMRC as an employer if your employees are earning under the National Insurance Lower Earnings Limit (£111 per week for 2014-15), if you are hiring members of your family it may be recommended to register and document all payments to ensure that the payments you make do not come under any scrutiny.

We can offer a complete payroll administration and management service to help your business stay compliant while you focus on your business, just get in touch.