Employing Summer Staff: What Small Employers Need to Know
Summer is the busy season for plenty of Widnes businesses, and taking on temporary or student workers is often the easiest way to cope. Here is how to employ summer staff properly, from payroll and minimum wage to holiday pay and the paperwork that keeps you the right side of HMRC.
Employing summer staff can be one of the smartest moves a small business makes, giving you extra hands through the peak months without a permanent commitment. It also brings a short list of employer duties that are easy to overlook when you are busy, from registering the worker for PAYE to getting the National Minimum Wage right. Whether you are a cafe hiring a couple of students, a builder taking on a labourer, or a shop covering the school holidays, here is what you need to sort out before the first shift.
Temporary staff are still employees in the eyes of HMRC
The first thing to understand is that a seasonal worker is usually an employee, even if they are only with you for six weeks. That means the normal rules apply: you run them through payroll, deduct any tax and National Insurance due, and report their pay to HMRC. Calling someone casual or temporary does not change their legal status or your duties as an employer. If you are not already set up as an employer, you register with HMRC for a PAYE scheme, which our payroll service in Widnes can arrange quickly so you are ready before payday.
There is a common myth that students do not pay tax, and it is worth clearing up. Students are taxed in exactly the same way as everyone else. They have the same personal allowance, and they only pay tax if their total income for the year goes above it. The GOV.UK guidance on students and tax confirms there is no special exemption, so a student who earns below the allowance simply pays no tax, the same as any other low earner.
Getting a new starter onto payroll
Setting up a summer worker on payroll is more straightforward than it sounds once you know the order of play. The steps below are the same whether you are taking on one person or five, and getting them right from the start saves a tangle later.
1Check they can work in the UK
Before the first shift, see proof they have the right to work here, such as a passport or a share code. Keep a clear copy on file, because the responsibility for the check sits with you as the employer.
2Collect their starter details
Get their National Insurance number, date of birth, and a P45 from a previous job if they have one. If they do not, run through the HMRC starter checklist to work out the right tax code.
3Report before you pay them
Send HMRC a Full Payment Submission on or before the day you pay the worker. This real time reporting is not optional, and late submissions can trigger penalties even for a short summer job.
4Give a payslip and a leaving P45
Every worker gets an itemised payslip, and when the summer job ends you issue a P45 so their next employer picks up the right tax code. It is a small courtesy that avoids a lot of confusion.
National Minimum Wage by age band
Paying the correct rate is where employers most often slip up, usually because a worker has a birthday mid-summer or because the apprentice rate is applied by mistake. The National Minimum Wage depends on age, and the National Living Wage now applies to everyone aged 21 and over. The current hourly rates from April 2026 are set out below, and you can confirm the latest figures on the GOV.UK minimum wage rates page.
21+National Living Wage applies to workers aged 21 and over, the highest of the bands.
1818 to 20 rate covers young workers who are not yet on the full adult rate.
16Under 18 rate applies to school leavers and younger staff, with the apprentice rate separate again.
The rate to watch is the birthday. If a worker turns 21 partway through their summer job, they move onto the National Living Wage from the start of the next pay reference period, and paying the old rate after that is an underpayment. Keeping an eye on ages is one of the quiet jobs our bookkeeping team builds into a client’s payroll so nothing gets missed.
Holiday pay is not just for permanent staff
This is the duty that surprises small employers most. Every worker builds up paid holiday from their first day, including seasonal and temporary staff. The statutory entitlement is 5.6 weeks a year, which works out at 12.07 per cent of the hours a casual worker actually works. So even a six week summer job earns paid holiday, and if the worker does not take it before they leave, you pay it out with their final wages. The ACAS guidance on holiday entitlement explains how to calculate it for irregular hours, which is the usual pattern for summer work.
A quick way to estimate accrued holiday pay for a casual worker is to take 12.07 per cent of the hours they have worked. If a student works 120 hours over the summer, that is roughly 14.5 hours of paid holiday owed. Sorting this at the end rather than the start avoids an awkward surprise on the final payslip.
Common mistakes to avoid this summer
Watch out for these
Paying cash in hand and skipping payroll, which leaves you liable for the tax and any penalties that follow.
Assuming students are exempt from tax, when in fact they pay tax the same way once they pass the personal allowance.
Using the apprentice or old age rate after a worker has a birthday, which quietly becomes a minimum wage underpayment.
Forgetting holiday pay for short seasonal jobs, then facing an unexpected sum on the final payslip.
Missing the real time submission deadline, which can trigger a penalty even for one temporary worker.
None of these are difficult to avoid once the payroll is set up correctly, and most only cause trouble when a summer hire is treated as an afterthought. If you would rather hand the whole thing over, our business support team runs summer payroll for employers across Cheshire every year, so you can get on with the busy season.
Frequently Asked Questions
Do I have to put a summer worker on payroll if they are only here a few weeks?
In almost all cases, yes. A seasonal worker is usually an employee, so you run them through payroll and report their pay to HMRC in real time, even for a short job. The only common exception is a genuine self employed contractor, which is a different arrangement. Speak to us for advice tailored to your situation.
Do students really pay tax on a summer job?
Students pay tax in exactly the same way as everyone else. They have the same personal allowance, so they only pay income tax once their total earnings for the year go above it. Many summer only students earn below the allowance and pay no tax, but there is no automatic student exemption.
What if my summer worker does not have a P45?
That is very common with students and first jobs. You use the HMRC starter checklist instead, which asks a few questions about their circumstances so the correct tax code can be applied from the first payslip. It takes a couple of minutes and keeps their tax right from the start.
Does a seasonal worker earn holiday pay?
Yes. Every worker builds up paid holiday from day one, including temporary summer staff. A simple way to work it out for casual hours is 12.07 per cent of the hours worked. If it is not taken during the job, you pay it out with the worker’s final wages when they leave.
Which minimum wage rate applies to a young summer worker?
It depends on their age. Workers aged 21 and over get the National Living Wage, with lower bands for 18 to 20 year olds and under 18s, and a separate apprentice rate. Watch for a birthday during the job, because the higher rate applies from the next pay period once they reach the new age band.
Do I need employer’s liability insurance for a temporary member of staff?
In most cases, yes. Employer’s liability insurance is a legal requirement for almost all businesses with staff, and it applies to seasonal and casual workers just as it does to permanent employees. It is worth checking your policy covers everyone on site before the summer rush begins.
Can FD Accountants run our summer payroll for us?
Yes. We handle payroll for employers across Widnes and Cheshire, from setting up a PAYE scheme to processing pay, holiday, and leavers. You get a clear price before we start, in plain English, so taking on summer staff does not add to your workload.
Take on summer staff with confidence
Extra help through the busy months should make your summer easier, not harder. Set the worker up on payroll properly, pay the right rate for their age, and remember the holiday pay, and the rest looks after itself. If you would like us to handle the payroll so you can focus on the season, get in touch with FD Accountants for a free initial consultation with no obligation.
Straightforward Accounting. Real Support.
We help employers across Widnes take on staff the right way, from summer payroll to year round accounts and everything in between.