Maslins July 2009 Newsletter

Recruiting an employee - tips to consider

Employing staff is a minefield of constantly changing rules and regulations, perfect to trip up anyone who doesn't do all their homework. Below we've summarised a few tips, particularly for those recruiting their first employee.

Don't look for a clone of yourself...

You will inevitably be disappointed. Either because you can't find anyone, or worse, because the person who seemed to be "just like you" turns out to be rubbish at the job.

...but do look for someone on your wavelength

You do, however, want someone with a similar approach. If you prefer things to be formal, ask candidates to dress smart for the interview and see how comfortable they are in a suit.

Don't feel you need to take someone on

If you interview 5 candidates, and none of them seem suitable, don't feel the need to employ "the best of a bad bunch". Starting the recruitment process again may be frustrating, but it's better than being stuck with a poor employee. In the current economic climate you can afford to be more picky over who you employ.

Give them a great job title

Silly as it may seem, people do put value on their job title. Sure, you may scoff when you realise a restaurant's "Field Nourishment Consultant" is their waiter/waitress, but an appropriate title may help employees take more pride in their job. It may be worth having a discussion with a new recruit as to what (within reason) they'd like their job title to be.

Don't discriminate against race, religion, gender, age, or anything else personal

Employment law is a minefield. Put simply, your decision on who to employ cannot be influenced by any of the above factors, nor their sexual orientation, weird hobbies, appearance, weight...or pretty much anything at all other than their capability to do the job in hand. If in doubt, seek legal advice.

Write down a list of questions to ask at interview

Also make sure you write down their answers. Ignoring whether you get the right person or not, asking everyone the same questions and jotting down their answers keeps things fair, and could be vital evidence should a rejected candidate take you to a tribunal.

Minimum wage

It is probably also worth mentioning the national minimum wage at this point. Ignoring a few minor exceptions, the rates from 1 October 2008 are:

• £3.53 per hour for workers under 18.
• £4.77 per hour for workers aged 18-21.
• £5.73 per hour for workers over 21.

Tax tip of the month

Flat rate VAT scheme

For those with turnover below £150,000, consider joining the flat rate scheme for VAT. Instead of adding up all the input and output VAT in a quarter and paying the difference to HMRC, you simply pay over a set % of your gross turnover.

Most of our IT consultants use this scheme. It works for them because their expenditure is typically low, so not being able to recoup input VAT has negligible impact. Below is a brief numerical explanation of how it can be beneficial (using flat rate for IT contractors of 11.5%).

• Invoice charged per quarter (say) £20,000 + VAT = £23,000. Output VAT = £3,000.
• Hardly any costs incurred (say) £500 + VAT = £575. Input VAT = £75.
• Under normal VAT rules, he would pay over £2,925 (being £3,000 - £75).
• Using the flat rate scheme, he would pay over £2,645 (being 11.5% of £23,000).

So using this scheme has not only made the administration much easier (for VAT purposes he only needs to keep track of his sales, not his purchases anymore), but he's also saved £280 tax this quarter.

The flat rate scheme is not always beneficial, whether it is or not depends on a number of factors. Give us a call on 01892 888 010 if you wish to discuss it further.

Local Event

Jazz at the Pantiles

Every Thursday (with the exception of 9 July when "School for Scandal" is on instead) from now until 3 September there is jazz music from 7:30-10pm on the Pantiles. The music is entirely free, so why not treat yourself to a sophisticated night out!