Definition of Self Employed?

spugzbunny

Hello?

What exactly is the definition of self-employed? My friend has asked her agency to pay for her eye test under the government regulations but they claim she is self-employed. They have agreed to pay her eye test as a one off but it has sparked a debate as to what exactly makes someone self employed.

My friend is:
A temp admin assistant working through an agency assigned to a client company.
She completes a timesheet each week, submits it to the agency and gets paid by the agency.
They negotiate her positions & rate for employment.
The agency pays her NI and tax before pay.
She has never registered her own company.
She basically has the standard admin assistant temp role set up.

What is the law here? Is she self employed?

Muchos Thanks!

PlutoinCapricorn

If the agency deducts income tax and NI at source, then she is not working for them on a self-employed basis.

However, this does not mean that she is entitled to have her eye tests paid for: the contract of employment should state what, if any, benefits come with the job.

spugzbunny

PlutoinCapricorn wrote: »

If the agency deducts income tax and NI at source, then she is not working for them on a self-employed basis.

However, this does not mean that she is entitled to have her eye tests paid for: the contract of employment should state what, if any, benefits come with the job.

Thanks for your reply - we checked the heakth and safety act (and called to be sure!) and it states that an employer is required to provide an eye test for VDU users. The agencies arguement was that they were not her employee therefore not bound by this law.

PlutoinCapricorn

I am self employed, so may have got out of touch with the world of employees and agencies!

There may be new government regulations about eye tests for people on VDUs - perhaps other MSE people will know more about that.

Surely if you work for an agency you are their employee? Again, other people may be able to clarify this.

There may be some loophole that the agency is trying to slip through: I am sure this situation must apply to many people, and I hope that they can be of help here.

Bean_Counter

Please find attached a link to HMRC website showing whether employed or self-employed. By the sounds of it, definitely employed.

PlutoinCapricorn

Eye Sight Tests - Workplace Law Network
If they are agency workers, the agency has to provide the eye eyesight test .... that on average the cost of eye tests and glasses are on average £40 - £50. ...
www.workplacelaw.net/forums/listComments/


Here you go!

PlutoinCapricorn

You say that your friend has never set up a limited company. What about registering as a Sole Trader?

Why does the agency think that she is self employed?

duncan303

spugzbunny wrote: »

What exactly is the definition of self-employed?

One of the main tests is, but not exclusively, do you correct your mistakes WHOLLY at your own expense. both in terms of time and materials.

Do you pay for your mistakes out of your own pocket.


_______

Bean_Counter

Here's an extract of the HMRC link I used:

You can usually work out your employment status by asking a few straightforward questions.
You are probably self-employed if you:

• run your own business and take responsibility for its success or failure
• have several customers at the same time
• can decide how, when and where you do your work
• are free to hire other people to do the work for you or help you at your own expense
• provide the main items of equipment to do your work

You are probably employed if you:

• have to do the work yourself
• work for one person at a time, who is in charge of what you do and takes on the risks of the business
• can be told how, when and where you do your work
• have to work a set amount of hours
• are paid a regular amount according to the hours you work, and get paid for working overtime - even if you do casual or part-time work, you can still be employed

nexuss

It is blatantly obvious she works for the agency and is not self-employed.

spugzbunny

Thanks everybody! Yes we checked the HMRC website and we called the helpline to clarify ... my friend pointed all this out to her agency but was told she was 'misinformed'!!

Someone did suggest that if she looks at her P60, it will show her employer at the top.

No she has never registered as a sole trader and the agency seem to think she is self employed because they say she is! A check of contract is required I think!

Bean counter - I am also a bean counter!