Self employment e.t.c

[skyhuck]

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

 

 

Why would you see this as a issue at this early stage??

[john p]

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

 

I know this has been covered a trillion times but he will be a labour only subcontractor and therefore covered by employers pl and el, as he is to all intents and purposes an employee for the day

 

 

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[arbogrunt]

he is under his Bosses PL but should have his own Injury/sickness cover. His Boss must have EL.

[JLA Arborists]

The difference of employee / contractor was explained to me like this.

Employed if to where to be, when to be there and how to do it. A sub contractor get told that's the job, and you deal with it

[Inoff the Red]

Why would you see this as a issue at this early stage??

 

Putting the differences in tax treatment to one side, the choice between sole trader and limited company could depend on how risky your work will be and the extent to which you can cover those risks through insurance.

 

As an example, if you are a sole trader and the tree you are working on demolishes a house, your personal assets could be at risk if the householder decided to sue you for negligence. If you operated through a limited company and the same event happened, any claim would be against the limited company and your personal assets would be safe.

 

Depending on the level of trading and profitability there can also be tax advantages by operating through a limited company.

[Andy Collins]

Just an aside, but relevant to one of the posts here, IMO, all people should have there own sickness and personal accident cover, employee or contractor. Who is going to pay you if and when you are sick or injured? Don't forget, personal accident cover will protect you if you have any accident, in or out of work, surely it's unfair to expect an employer to pay you for hurting yourself playing rugby, football or more extreme sports?

[skyhuck]

Putting the differences in tax treatment to one side, the choice between sole trader and limited company could depend on how risky your work will be and the extent to which you can cover those risks through insurance.

 

As an example, if you are a sole trader and the tree you are working on demolishes a house, your personal assets could be at risk if the householder decided to sue you for negligence. If you operated through a limited company and the same event happened, any claim would be against the limited company and your personal assets would be safe.

Depending on the level of trading and profitability there can also be tax advantages by operating through a limited company.

 

I think insurance would be a better protection.

 

Going Ltd is quite expense and IMO is not worth considering unless your at least over the VAT threshold, I think going VAT registered would the first move before thinking go going Ltd.

[Tom D]

What are the bosses motives for not wanting you on the books? Make sure you ask.

 

You can easily be on the books PAYE and still only work when required, my concern is that the boss has no employers liability cover and is attempting to use you as a Bona fide subcontractor, something which you are definitely not. Make sure you check that he has EL cover because if he doesn't and you get injured whilst working for him it will be very ugly, your only option would be to sue, and he may not have much. Imagine spending the rest of your life in a wheelchair and all you get is a couple of grand and an old transit and timber wolf. He would probably be prosecuted for not having EL cover but that would be little consolation.

[Taupotreeman]

Just an aside, but relevant to one of the posts here, IMO, all people should have there own sickness and personal accident cover, employee or contractor. Who is going to pay you if and when you are sick or injured? Don't forget, personal accident cover will protect you if you have any accident, in or out of work, surely it's unfair to expect an employer to pay you for hurting yourself playing rugby, football or more extreme sports?

 

Covered by ACC in NZ Andy but then, to be fair, I don't think you meant us over t'other side of the world.

 

 

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[Inoff the Red]

What are the bosses motives for not wanting you on the books? Make sure you ask.

 

You can easily be on the books PAYE and still only work when required, my concern is that the boss has no employers liability cover and is attempting to use you as a Bona fide subcontractor, something which you are definitely not. Make sure you check that he has EL cover because if he doesn't and you get injured whilst working for him it will be very ugly, your only option would be to sue, and he may not have much. Imagine spending the rest of your life in a wheelchair and all you get is a couple of grand and an old transit and timber wolf. He would probably be prosecuted for not having EL cover but that would be little consolation.

 

There are numerous reasons why an employer may prefer to use sub contract labour rather than employing someone:-

the cost employers national insurance at 13.8%.

the cost of holiday/paternity etc etc pay

difficulties in separating employees from the payroll if they become redundant

 

Of course, an employer could offer a zero hours contract but then the "employee" would be better off self employed