Where do i stand?

[wardyc1]

I am a sole trader and the lad I use as my groundy is freelance and invoices me for the work that he does for me, i pay him and receive a receipt for payment.

This all seems pretty straight forward, until recently I heard a whisper that he was signing on too. I asked him about this and he denied that this was the case. I believe him (kinda) as it goes without saying trust is imperative. But the whisper has sown a seed of doubt and a few things are niggling away in my mind. As i said ive taken him at his word that hes not signing on but where would it leave me from a legal stand point if he is and out of the blue there is a knocking on my door from a dwp officer asking why ive been employing a guy who is on the dole??

[felixthelogchopper]

I am a sole trader and the lad I use as my groundy is freelance and invoices me for the work that he does for me, i pay him and receive a receipt for payment.

This all seems pretty straight forward, until recently I heard a whisper that he was signing on too. I asked him about this and he denied that this was the case. I believe him (kinda) as it goes without saying trust is imperative. But the whisper has sown a seed of doubt and a few things are niggling away in my mind. As i said ive taken him at his word that hes not signing on but where would it leave me from a legal stand point if he is and out of the blue there is a knocking on my door from a dwp officer asking why ive been employing a guy who is on the dole??

 

I would say it's his crime, not yours, if that is actually what he is doing and it's not just a case of somebody stirring. As long as you are getting invoices for everything you pay him then I would say you are fine as you are doing everything legitimately.

[Stephen Blair]

You should have his unique tax reference number before you pay him any money.

[wardyc1]

Yeah, i suspect it may be a bit of stirring and Im thinking that my back is covered because from my point of view everything is above board but Im very aware that the dwp make their own rules and can come down hard on folks that employ people claiming benefits. I gave them a ring but the chap i spoke to was curt and unhelpful just kept saying he cant tell me anything because of privacy laws

[wardyc1]

Stephen, very good call, ill bring that up with him when i see him this week.

[nepia]

As above on the matter you're asking about - its his lookout, not yours - but on a different note how much are you using him? I ask because if HMRC get to think you're his main source of income and that he's working for you sufficiently they will view him as employed by you, not self-employed; invoices will not deflect them.

If you become employer there are all sorts of things that kick in - Annual Leave entitlement, Sickness Management, NI, employee training, employer's liability...

I ask this as the impression given by your post, rightly or wrongly, is that your groundie does a substantial amount of work for you.

 

This may help

HM Revenue & Customs: Employed or self-employed

[felixthelogchopper]

As above on the matter you're asking about - its his lookout, not yours - but on a different note how much are you using him? I ask because if HMRC get to think you're his main source of income and that he's working for you sufficiently they will view him as employed by you, not self-employed; invoices will not deflect them.

If you become employer there are all sorts of things that kick in - Annual Leave entitlement, Sickness Management, NI, employee training, employer's liability...

I ask this as the impression given by your post, rightly or wrongly, is that your groundie does a substantial amount of work for you.

 

This may help

HM Revenue & Customs: Employed or self-employed

 

Good point.

[wardyc1]

i dont use him much at all 1 or 2 days a week. never a full week and never more than 3 days as i have a part time caretakers job to pay the bills.

[felixthelogchopper]

i dont use him much at all 1 or 2 days a week. never a full week and never more than 3 days as i have a part time caretakers job to pay the bills.

 

Do you use him on a regular basis, same days every week, and does he work for anybody else?

[JLA Arborists]

Yeah, i suspect it may be a bit of stirring and Im thinking that my back is covered because from my point of view everything is above board but Im very aware that the dwp make their own rules and can come down hard on folks that employ people claiming benefits. I gave them a ring but the chap i spoke to was curt and unhelpful just kept saying he cant tell me anything because of privacy laws

 

I think that's more cash in hand jobs. You should be ok if you have invoices from him.