Redundancy and Self Employment

rose28454

I have been self employed for 6 years but have worked for the same company 4 days a week. I went self employed because I work for another company sometimes and wanted to be able to do this other work. However the main company has now gone into receivership. I was wondering if anyone knew if I am entitled to redundancy as when you look on the Internet it says I may be. It is a bit od an awkward situation as the company is partly owned by my brother and he is really against me claiming.

CFC

The difference between being an employee or self-employed will affect that person's employment rights. In deciding this question the law says that the following has to be looked at:

a) Does the employer control what work is done ?

b) Does the employer control where, when and how the work is done ?

c) Does the employer provide holiday and sickness pay ?

d) Is the employer taking the financial risk ?

e) Is the employer responsible for paying Tax & National Insurance Contributions ?

If the answers to the above are yes then that person is likely to be employed, rather than self-employed, no matter what the employment contract says.

Employee

It will normally be your employer's responsibility to deduct tax and National Insurance contributions from your pay under PAYE and pay it to the Inland Revenue.

Self-employed

You are responsible for your own tax and National Insurance contributions. This means

telling your Inland Revenue office if you haven't already done so, that you are in business
telling your Inland Revenue office about all your income. Once you have told us that you are in business, we will normally send you a Self Assessment tax return each year to enable you to do this. However, you must still tell us about income you have in any tax year, even if we do not send you a tax return for that year
paying the tax
paying Class 2 National Insurance contributions. We will send you a bill every 13 weeks in arrears, unless you choose to pay monthly by direct debit
paying Class 4 National Insurance contributions.

If you are employed, then you will be entitled to redundancy.