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Job offer, but must be self-employed

Hi all - I wonder if anyone could give me some advice, please. After going for an interview last week, I've just received a part-time job offer in a local shop, three days a week - so far so good (I was over the moon). However, the owner said he would pay me in cash (declared at the end of the year) and I would need to sort out my own tax/National Insurance etc. He mentioned this in the interview, but as I thought this would be straightforward (in my ignorance) and didn't expect to get the job I didn't worry about it too much. Silly me. I've now been reading up about it on the HMRC site and it seems more complicated than I'd previously thought.
From reading the self-assessment/self-employed content on the HMRC site, I'm confused about how I would count as self-employed, as the criteria it gives for being self-employed don't seem to be met by someone working in a shop. Obviously it works out cheaper for the shop owner to do things this way (there are a couple of other part time staff working there also) but I'm now thinking it might be a big pain for me and/or maybe a bit odd legally.
What do you think? Is it worth going self-employed for a part time only income, and would I genuinely be self-employed if I'm working in a shop as a shop assistant?

Comments

  • I know in Aldi or Lidil (or both), the shop workers dealt with their own tax and NI, so its not uncommon.

    I'm sure someone can give you more detail though, as that's about all I know. :D
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    This is unlawful. You cannot possibly be self employed if you are working in someone's shop at the hours they dictate (and I doubt if Lidl and Aldi staff are t/a self employed either).
    If the emplyer gets found out, they will be liable for the tax and NIC's on your wages. You will have no employment rights - no sick, holiday, paternity, maternity pay. And what if you have an accident in the workplace - are you covered by their insurance.
    Stay well clear.
    £705,000 raised by client groups in the past 18 mths :beer:
  • Lavendyr
    Lavendyr Posts: 2,610 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    In order to be employed, there are three key factors:

    Mutuality of obligations - There must be an obligation on the employer to provide work and an obligation on the employee to do that work.

    Control - The employer must have some form of control over the employee (ie if and to what extent the employer can tell the employee not only what to do but also how and when to do it. - e.g. working hours).

    Personal Service - The employee must have agreed to provide his own work and skill in the performance of a service for his employer (i.e. the employee can't send someone else in his/her place to do the job).

    If these conditions are met then you are likely to be viewed by HMRC as an employee, and to be honest it sounds like this guy is more than a bit dodgy. The payment in cash also suggests that he might not be paying all the tax he should be.

    As fengirl says there are lots of other implications, and I echo the suggestion to steer well clear - and possibly put in a call to HMRC to report this guy as it sounds very much as though he is trying to evade tax, which is illegal.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I know in Aldi or Lidil (or both), the shop workers dealt with their own tax and NI, so its not uncommon.

    you sure this is right as i left aldi 2 years ago and my brother left lidl last year and we never had to do our tax or NI, aldi and lidl are shops like tesco, sainsburys and any other business where you dont do your own tax and NI
  • dawkins
    dawkins Posts: 34 Forumite
    Hmm - it's sounding a bit dodgy then. Rats. I've been trying to get through to the HMRC helpline to see what the official line would be, but can't get through. I guess I've picked a bad day to phone up.
  • dawkins
    dawkins Posts: 34 Forumite
    Finally got through to the tax office, and they advised that it is actually okay for me to be working in the shop on a self-employed basis - I double-checked and actually asked 'is that kosher then' (or words to that effect) and they said yes. Weird that their website seems to contradict that!

    Just wanted to thank you all for spurring me on to check it out properly - thank you.
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