Employment Contract -self employed

zacncaz

I'm currently trying to negotiate a contract with a potential employer. They wish to pay me £33k for 2.5 days per week but I want a self-employed contract. What should I be expecting from them as a revised salary based on the savings they will make by not employing me?

PlutoinCapricorn

You have used the words 'employer' and 'salary', which are confusing if you are going to work on a self employed basis.

What sort of arrangement will you have with this potential 'employer': it is not your decision or theirs that determine whether or not you are an employee or a self employed person, but what HMRC would say. You can't just decide that you want to work for someone on a self employed basis.

If you are a sole trader, have you got a usual hourly rate or similar charge? Have you got other clients? It is certainly normal for genuine freelancers to charge more than employees doing the same work would get to cover the times when there is no work and the fact that there is no paid leave nor sick pay.

Premier_2

zacncaz wrote: »

I'm currently trying to negotiate a contract with a potential employer. They wish to pay me £33k for 2.5 days per week but I want a self-employed contract. What should I be expecting from them as a revised salary based on the savings they will make by not employing me?

Have they indicated they might be prepared to take someone on other than on a permanent basis that demonstrates a mutual commitment by both parties, and one the employer may only be prepared to entertain in return for offering work and training in return? Perhaps the employer is seeking to nurture a long term relationship that is demonstrated by permanent employment, and plans to invest in growing & improving your skills for their benefit in the future?

Uncertain

As others have said whether or not you are self employed is not really up to you or your "employer".

There is some useful guidance on this on HMRC and Business Link websites.

Assuming you can be treated as self employed you will lose out on a number of employment "benefits" but probably gain some tax advantages.

You will not get any sick pay nor will you be able to claim JSA should your "job" end. You need to either take out insurance or put some money to one side to cover this. On the other hand you will pay less in national insurance.

You will not get paid holidays so you need to allow for the fact that you would have been paid for 13 days (as you are half time).

Unless you agree a contract you will not have any "job" security at all. You may be able to agree a contract giving you a right to notice etc but this would be another point on the employee side of the debate.

As an employee you would not normally have to pay the cost of any mistakes you make (although you may get sacked if they are bad enough). As a self employed person you would normally put right any errors at your own expense.

As a self employed person you would be stupid not to have public liability insurance - another cost. Again you may be able to agree that the "employer" is responsible but this is another tick in the employment box.

Hope this helps.


You

Hammyman

zacncaz wrote: »

I'm currently trying to negotiate a contract with a potential employer. They wish to pay me £33k for 2.5 days per week but I want a self-employed contract. What should I be expecting from them as a revised salary based on the savings they will make by not employing me?

You can't have a self employed contract as you wouldn't meet the criteria for self employment under HMRC guidelines, mainly due to you not being able to specify the hours or send someone in your place.

The rule of thumb is employing someone costs about 22% above their gross salary so £33k plus say 25%.

However as others have mentioned, whether you'd be classed as self employed is the HMRC decision and not yours or the employer.

Uncertain

Hammyman wrote: »

You can't have a self employed contract as you wouldn't meet the criteria for self employment under HMRC guidelines, mainly due to you not being able to specify the hours or send someone in your place.

Quite possibly but it is not as clear cut as you suggest. These are two (important) factors on a list of many.