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Alison Clynes
Written by Alison Clynes
Monday, 14 December 2009 10:00

Much is written about young people and the high levels of unemployment amongst them. It seems that even though their exam results are better than any previous generation, itself a subject of much discussion, they are not considered to be properly prepared for the working world. Many employers do not just sit and moan, they want to do something to help and surely everybody would agree that youth training is a good thing. However, when employers become embroiled in the Pay As You Earn rules and regulations relating to youth training, they often have second thoughts. It may well be that they need to give serious consideration to payroll outsourcing.

If you take someone on under the youth training scheme as an employee you should include both the YT allowance you receive from the government and any top-up pay in their taxable pay and treat it accordingly. However if you do not pay the YT allowance direct to the employee, matters become rather more complicated.

It is also possible to take a young person under the YT scheme but not treat them as an employee. This can lead to more confusion in how their remuneration should be treated for tax purposes.

It should be stressed that the New Deal is something quite different and is subject to its own rules and regulations.

We at Dataplan Payroll are experts in payroll outsourcing. Talk to us about your specific needs. Our flexible pricing structure means that we will be able to save you not just trouble, but money as well when looking for a payroll solution.

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