Employing A Live In Manager

[lyndylou]

I live and run my business in the same building I am tired so i would like to move out and employ a live in manager. However I fear a lot of pit falls such as tax implications when an employee is living on the job ....... Such as how many hours constitute a working day? how much does the hourly rate work out at? How do I separate rent from wages etc etc etc ...... Can anyone point my in the right direction PLEASE I need to do this properly
Thank you

[Sycamore3House]

I used to run a pub/restaurant and lived in also. My contract was for 48 hours per week with 2 days off per week. I also got 20 days holiday and 8 bank holiday days per year to be taken within 6 weeks of each bank holiday of each bank holiday as traditionally the pub was busy on these days. The salary paid was well above minimum wage and a deduction was made for livings costs of £50 per month. the only bill for living costs that I paid was council tax which was approx £80 per month (5 years ago). Heat, light & phone were perks of the job so to speak. We also had to pay for our own TV licence and contents insurance for our belongings. We had to sign a type of tenancy agreement in that we did not sublet any rooms in our flat and to leave it as we found it. The flat included kitchen equipment only which was washing machine, dryer, cooker and fridge. The washing machine and tumble dryer were used also to wash any cloths from the business. We did not get any allowance for food or drink.

[Maydup]

Can we clarify that it is absolutely essential for the manager to live in?

[Peter Pedant]

Good idea - Lindyloo

I look at all the active industrial units behind me and which are robbed on a regular and industrial scale and wonder why they dont get a live in fella....

The insurance issue for you has been solved - there has always been someone on the property 24h - and that can hold things up. ( conversion from unoccupied and 'secured' to occupied changes the insurance status.

Sickie's contract seems good

I dont know why Madeup has asked if it is absolutely necessary
( perhaps it is because she wants to know rather than it changes the commercial/financial decision )

[DTCwordfan]

Who owns the building? If you are not the owner, do you lease under your personal name or that of your Company......

[Retrochic]

OP has asked this question last year more info here

http://www.theanswerbank.co.uk/Business-and-Finance/Question1366723.html

[Peter Pedant]

well at least she has saved one year's salary of a live-in mgr

atually I think the old link gave better advice - or has aged well

[trt]

Whats the business?

[Mamyalynne]

Hotel.

[DTCwordfan]

Well, simply put she needs a contract that defines conditions of employment, benefits and the perks - and that any residence is only when employed. Personally, I would think that this needs putting against the company account and not her own. However, she needs a consultation with her accountant and lawyer to this. They will steer her on the duties, performance benchmarks, salary, bonuses, the value of the perks, the tax implications on the business, the risk of the letting and how to protect herself/the business.

[lyndylou]

OMG I cant remember asking this q last year... Just shows its on my mind.... To answer a few ..yes its a hotel... So yes a live in is essential .... I am looking to find out more about the employment law side of things so that I get piece of mind ....so sycamores answer is very good but doesn't answer the whole issue ...Are you saying your accommodation only cost you £50 per month? And how was the cost deducted from your wages? was the whole (perceived) wages subjected to tax or was the rent overlooked as your income?? So many questions..... But thanks for everyones input

[lyndylou]

Yes yes yes DTCwordfan nail on the head ... All of that ....you answer came in just as I was typing my last reply ..... I need to know all that .... Now where do I start?

[lyndylou]

How do you know I'm a SHE?

[bednobs]

because on your profile it says "female"

[DTCwordfan]

and your name isn't exactly 'steve' or 'ed' or something neutral like 'Imahotelowner'

[DTCwordfan]

Book an appointment with your accountant - and then your solicitor - when you have the deal for your manager tied down a little more, cheaper that way. Don't try and buck them on the basis of expense as it could end up costing you a lot more (in tax, expenses - or even worse, an (ex)-employee who refuses to move on when he/she has underperformed and you have fired them. You must avoid squatters' rights as, no doubt, you have a replacement manager who needs the accommodation be it a suite or a flat.

[Retrochic]

lol! only on AB -user name 'lyndylou' profile states 'female' and then she asks "how do you know I'm female" lol

[Sycamore3House]

The accommodation cost was a deduction the same as NI & tax.