registering as self employed

fruitdogs

Good Afternoon,
My son has been unable to find work since graduating in July 2008.He was on jobseekers allowance, and was working as a volunteer.The company he was volunteering at happily gave him some paid hours.My son signed off from jobseekers, and has been told to register as self employed. Who does he contact about this? He would obviously like to pay his taxes and NI. Many thanks for any help you can provide.

PlutoinCapricorn

Who told your son to register as self employed? It is not always straightforward or necessary just for a few hours' work. Does he expect any more such work?

If he is on JSA, it is likely that he would not earn enough to pay income tax.

fengirl_2

The employer cannot just tell him he is self employed - it all depends on the circumstances and nature of the contract between him and the employer. This is often a way for employers to escape liability for NI, paid holidays, sick leave, etc. Your son needs to ask the employer whether HMRC has agreed that this is a self employed position.

fruitdogs

TYVM for the swift replies.My son is sometimes working 30+ hrs a week.He signed off from the JSA as in the run up to Christmas he should get at least 30 hrs a week.He has worked for the last 8 weeks.He was told it was up to him if he registered or not.This was not an option for him(nice lad,but I'm biased).

PlutoinCapricorn

I'm still a little confused about what is going on, but if he has signed off JSA and got some work it must be good. So the charity has offered him around 30 hours' work per week over the holiday season?

Have they been deducting tax from what they have paid him in the past?
They could treat him as a casual worker and deduct tax and NI: being self employed does not sound right for this position.

The JSA may give him a P45 to give to the new employer.

fruitdogs

No tax or NI deducted,they say it is up to him to declare any earnings.They pay into his bank a/c weekly.

fengirl_2

I think we need more information about what this job actually involves before we can comment further - as I said above the employer cannot just declare him self employed and wash his hands of the situation - your son's rights may be being ridden over.

fruitdogs

He is working as a steward in a Theatre.

PlutoinCapricorn

Weekly pay? Self employed people often invoice their clients monthly, or on completion of an assignment. This looks like casual work to me.

It seems that the employer is not following normal procedures. Do they provide payslips? Just telling your son to be self employed is not right.

Obviously your son doesn't want to rock the boat, but the employer should be aware that that they could be investigated by HMRC.

fengirl_2

A steward in a theatre sounds, on the face of it, like an employed position. He is presumably working the hours they dictate, cannot make a loss, cannot send anyone else in his place, maybe has to wear a uniform? This is not a self employed job - he is almost 100% an employee and the employer is trying to dodge his responsibilities. As soon as your son tries to register as self employed, HMRC will query this. He is being ripped off by this employer and needs to stand up to them. At the end of the day, the employer will be stung for the tax and NI - no wonder they are saying not to bother to register as self employed!

nexuss

fruitdogs wrote: »

He is working as a steward in a Theatre.

This is an employed job not a self-employed job.He has been stitched up.