self employed

[27neth]

Any help appreciated here.. I am self employed and have been working for the same builder getting paid through cis for 6 months..
He has now said i need to go on the books but the money he has offered me is a massive pay cut.. I want to keep working for him (steady work etc) is there any way around this to stay self employed?

Cheers.........

 

[gregers]

dunno if this is still feesable?

when i was a subby quite a few years back,they changed the rules and we iirc were only allowed to work for the same company for 12 weeks.
the way 1 company found was to assume we were all on price,

so we put in bills for say 100m of hardwood skirting screwed and plugged for say 700 quid,then the next week something completely different for 375 quid,and kept doing this for a few weeks then every now and then square it all up so it worked out a ok every month
as i say dunno if you can get away with it now?
or weather someone else has come up with an easier solution.

 

[ninjacat]

I would say that if you only work for this one company for 6 months then in the eyes of hmrc you should be an employee. Do you set your own hours to do a job? Do you provide all the materials? Do you quote and specify what is required to do the job? A lot of this will determine if you are a self employed sub contractor or really a temp employee on a zero hour contact.

If you become an employee it costs your employer more money with extra NI contributions, additions to PLI, PPE should be supplied, holiday and sick pay etc.

All you can do is haggle for the money you want and compromise for a steady income.

If in doubt seek advice from an accountant. Do not try to pull one over on hmrc as it will get messy if they find out.

 

[27neth]

Thanks for the help. I am basically like a employee, work 40-50 hrs a week for them..
If i get took on as a employee i still have to use my own van, fill it with fuel etc. PPE will be a pair of £15 boots a year. No sick pay. The only advantage would be holiday pay, but my tax return being self employed would cover this.
Its not a small paycut its well over £100 a week..

John..

 

[ninjacat]

hmm, probably need to speak to an accountant or get pro advice but my view is that if you are taken on as an employee the company should :

- Pay out of pocket expenses - fuel and associated running costs of your van.

- Provide PPE and cover you with their PLI/ Prof. Indemity Insurance (if required).

- Pay sick pay.

- Pay holiday pay.

You work 40 -50 hours a week for this company. You could phone up HMRC and ask them what their opinion is (they are very good at advice) but I reckon you would definately fall into the PAYE employee catagory.

You don't have to give up self employed status so you could do other jobs as a self employed trader.

You may want to also consider setting up as a limited company as it would make it easier to be classed as a contractor - this would require proper advice from an accountant as to if it worth the trouble.

If you do end up being employed make sure he doesn't offer you a zero hour contract.

HTH

 

[denso13]

http://www.hmrc.gov.uk/paye/employees/start-leave/status.htm

 

[Harbourwoodwork]

You need some other clients aswell or you will be at his mercy

 

[gregers]

iirc companys do not have to pay sick pay,this comes under ssp.
and iirc you have to be ill for 5 working days before you can claim it??

 

[BlackSpot]

There is a plus side - you should be able to claim mileage on your van http://www.hmrc.gov.uk/rates/travel.htm. You don't claim from home to office, but from office to job, or home to job. Depending on how much travel is involved, it could work out at a lot more than the £100 per week that you think you're losing. This should be paid on top of your salary and is not subject to tax. [/url]