I have a client who was employed (as a headteacher) but has recently become self-employed (as an education consultant).
The organisation that he is working with have asked him if he wants to be paid as PAYE or not.
My query is, if he chooses PAYE, which he feels more comfortable with, does this mean he is employed rather than self-employed? He is seeking consultancy work from other organisations so is not exclusively working for this one, but does want all his consultancy work to come under his self employment business.
If he is under the PAYE scheme with someone then he is their employee so is employed. If he chooses to do this then he must read the contract to make sure it allows him to take on other work from other organisations on a self employed basis.
You can be both employed and self-employed, so have a part-time job and then have clients yourself.
Basically, your client cannot decide whether he is employed or self employed. It is based on the facts of each individual case.
However, it is the responsibility of the organisation that he would consult for to get this right!
Your client should ensure that he gets a contract in place which reflects the true nature of the working arrangement. You may also find this blog useful.
