Just wondering if someone would be kind enough to offer me some advice. Essentially I have worked for a company for around 10 months now on a self employed basis. I have done some research and it seems the reason companies prefer workers to be self employed is because it is far cheaper for them. My concern is, because I am working in their office (with other members of staff who are self employed) to set shift patterns, call scripts and other requirements that really it is for want of a better work not legal?
If they are not doing this correctly will I also be at risk of being fined for declaring myself as self employed when really I should have been an employee? I signed a basic contract when I started which stated something along the lines of I have to work to hours they deem necessary and have no rights under employment law. They have treated me well and paid me on time to the agreed amount but I do not want to risk any fines/mon compliance with HMRC as this could cause difficulty applying for future jobs that require any form of security/vetting checks.
I wouldn't worry Mark. If it is deemed that you are indeed employed rather than self employed any reparations would fall upon your 'employer'/contractor. Employment status has been a hoot potato for some time and it isn't always clear whether you are one thing or another as arguments can be put in place for both and it tends to be judged on the weight of evidence rather than any one defining rule. If the employer wants to protect itself it should draw up a contract for services (as opposed to a contract of services) and such things as a substitution of labour clause amongst others should be inserted, not that this is a guarantee that it will be accepted! Most contractors would ask someone like yourself to form a limited company in order to escape any potential liability so it's quite surprising that they haven't done this, but bottom line is, it's not your problem!
It could be a good thing (for you anyway) if HMRC deem you to be an employee, your payments are deemed to be net, and all the money you have put aside for your tax (hopefully) will now be yours to keep!!!!
All the best
Nick
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
all the money you have put aside for your tax (hopefully) will now be yours to keep!!!!
Which would come in handy whilst your looking for another job.
Employers don't want employee's as they end up with responsibilities for pensions, RTI, training, etc. Far easier (and cheaper) to get temporary workers.
Anyone (ministers included) who assumes that if the worker were not working on a freelance basis that they would be employed is sadly mistaken.
If the option to employ people in this way was not available then the work would just be outsourced / offshored.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
