Self employment e.t.c

[NorcoDavid]

Hi guys, Firstly hello, this is my first post however i have been lurking for a while...

I a just starting in the industry and have had my basic tickets for a while however i shall soon be starting work with a local company.

The boss advised me to register for self employment a.s.a.p as he can't offer me a full time contract or employment (understandable) He would then pay me daily for any work done at an agreed rate (i assume i would invoice him)

All this sounds ok to me but i was just concerned about a few points.

Is this a perfectly normal thing to do?

Will i be covered by his insurance / how will i find out?

I have been self employed before but in that situation i was the boss and wasn't working through anyone else.

Hope this makes sense and someone could give me a bit of advice.

Thanks

David

[Alinicoll]

Hi,

 

If you are part time or temporary then self employed is fairly normal for small companies. Assuming he has insurance then you will be covered by his public liability (which he should be happy to confirm he has in the same way you would be happy to show him your tickets) and also by employers liability (which he must have).

[tilleytrees]

Hi there

 

There is a piece on the HMRC website which will answer your question.

otherwise as a general rule :- do you have any financial risk when you go to work, in other words do you supply your own kit and insurance etc or are you using his equipment and insurance, if he is supplying the kit etc then you will have no risk and should be on the books. also you need to be registered self employed and submit your self assessment, etc.

 

This is how I understand it hope it is helpful.

 

Regards

 

Richard

[doobin]

It is normal, however HMRC take a dim view if you do all of your work for him, and in that case you really should be employed. Technically you should probably be employed if you work under his direct control and are not responsible for putting any shoddy work right in your own time. But work is work these days, and if you can turn your hand to many things and do a good job then being a subby can be a good way to start your own business.

[NorcoDavid]

Thanks for the help guys.

It would only be for a few days a week as I have already got a contract job which I will probably continue with. As for kit I supply my own ppe and saw but I will also use any kit of his I need and his saws. I wouldnt consider myself a self sufficient contactor. Just so long as I am covered by his insurance when on site and it isn't considered dodgey dealings so long as I look after my own end with regard to self assessments, then I'm happy.

[Justme]

Even though you will be covered by his (for him causing you an injury say) your still going to need your own insurance in case you damage his clients property by negligence.

[Alinicoll]

No you don`t, as an employee that is covered by his public liability. You may be wise to have personal injury cover though.

[Justme]

No you don`t, as an employee that is covered by his public liability. You may be wise to have personal injury cover though.

 

But he is not an employee.

[Alinicoll]

Yes he is. He is a self employed employee. This is distinct from a bona fide sub contractor. As such he is covered by his employers PL. Were he a bona fide sub contractor he would need his own PL and his boss would need to be insured for use of sub contractors. There is a very clear distinction.

[Inoff the Red]

There is no such thing as a self employed employee.

You are either self employed or employed.

 

If you are working for a company on a day rate basis, you are effectively a sub contractor.

 

As others have said, HMRC take a dim view of companies that disguise employment by making people go self employed (although the BBC seem to get away with it with their presenters). Anyone starting a business will inevitably start off with a small customer base and if you are looking for work from other sources you can justify self employed status.

 

The bigger question to ask yourself is whether you should be trading as a limited company or as a sole trader.

 

Feel free to send me a PM with your email address if you want to discuss it further