charging an employee as a ltd company

[Waria Ahmed]

I have created my own ltd company to sort out my pay for while I'm contracting. I had a few questions, one of them is...

If I decided to take on another contractor as an employee and charge them £10-15 to do their pay and taxes out. How does this process work? basically if I was acting as an umbrella company?

Thanks in advance

[Crossroads]

I have created my own ltd company to sort out my pay for while I'm contracting. I had a few questions, one of them is...

If I decided to take on another contractor as an employee and charge them £10-15 to do their pay and taxes out. How does this process work? basically if I was acting as an umbrella company?

Thanks in advance

It's pretty simple. You invoice your client for services performed by your employee. You pay your employee his salary.

If you don't the answers to this, know how to calculate the payroll, then your accountant will probably charge you more (to run the payroll for a second employee) than an umbrella company would charge your "employee".

That's before you factor in the extra costs you may have to bear - insurances etc.