What should he do?

sazzyb

Some advice needed please. My BIL has been employed with a company since leaving school, being taken on as an apprentice 5 years ago. His apprenticeship finished successfully and he has now gone on to further his qualifications through the company with them funding his college course fees, studying 1 day per week at college and working at the company the other 4 days. He is in the middle of his college course with 2 and a half years still to go.

In the current climate, it's been necessary for his company to make job cuts and they're also moving premises, but they've told him they are willing to keep him on and continue paying his college fees BUT he will be paid cash in hand. They've said he will "officially" be deemed unemployed so as far as they're concerned he can sign on etc, which he feels very strongly is the wrong thing to do. He doesn't want to be paid CIH but he knows getting another job with a company who are willing to take on his course fees will be virtually impossible. He's also concerned about using machinery within the company, which he's often required to do as part of his job, since the company will probably(??) not be insured.

There has been some mention of him going self-employed, although he doesn't know how this works at all. I've suggested they go the CAB for advice, but if anyone can offer some advice on here, it would be much appreciated. TIA.

LittleVoice

He should ask himself why they are offering this to him. It's obviously saving them employers NI. (And perhaps they would not pay him the total of his wages but only what would notionally be his after employee's NI as well as tax have been deducted.)

If he can afford it, it would be better (if it comes to it) to take a pay cut to offset the NI the company would be saving. Or offer to pay his own fees.

Whatever he does, he should not accept "cash in hand" for tax avoidance reasons.

Given that he is an employee, it probably means that he would need to stay as one rather than become self-employed. It does depend on the type of work he is doing and whether he could work for anyone else or decide to send an acceptable substitute to do the work instead. Look at the HMRC site regarding what is regarded as self-employment.

Confusedconsumer_2

The situation sounds very 'fishy' to me and what they are suggesting, cash in hand and to claim benefit would be fraud.

You might find some information about being self-employed on the following site: www.adviceguide.org.uk - under employment. Otherwise, I would do as you suggested and visit CAB, although I doubt you will have any paperwork to take with you as the suggestion was verbal.

Good Luck.