Employment status

soupdragon10

I'm being made redundant as of tomorrow - have known about this for some time so used to the idea.

Have now been approached to do some 'casual' work for the company. This would involve a payment per client seen as long as paperwork is correctly filled out.

I did query whether this work would be on a basis of my being self emplyoyed, but was told the term was 'casual work'.

I have looked on the HMRC website and using their calculator, it does seem that what I am being asked to do would count as self employment as I can decide when I do or don't work, and have professional skills which I would be using.

I'm concerned that if I take up this offer and they then find they don't have a need for my services or suddenly run out of clients to see, that I will have burnt my bridges as far as in the short term, claiming contribution based JSA and mortgage protection payments goes. As I am the breadwnner (OH is disabled), I need to be sure that I'm not being misled about what is on offer.

I have an interview for a f/t permanent job a week on Friday, but am on the horns of a dilemma at the moment.

LittleVoice

I don't see why you think being employed or self-employed would make a difference to your claiming mortgage protection payment payments - you would be earning money with either status.

Just because you think you could be self-employed doesn't mean the company has to employ you on that basis. They would be taking a risk if they did because HMRC might not agree on your status. Have you registered as self-employed already?

ultrarunner

some of the tests for self-employment (financial risk borne by you, use of own tools and equipment, ability to sub-contract the work to someone else) appear not to apply in your case, although admittedly i don't know your full circumstances. it might be difficult to prove self-employment if you were asked to do so (and HMRC can make you do this if they choose).

it seems like that they want to pay you a per diem as and when you are required. i would be concerned about the risk of losing benefit entitlements as you point out, and given the employment market they might be required.

i suppose you need to weigh up the following - the amount of money you will get from these extra jobs, the potential benefits you may get or lose and your prospects in the job market.

soupdragon10

It is quite complicated, as having made a number of us redundant, they are now trying to re employ us but only pay us a flat fee per client, with no other benefits e.g. sickness, holiday pay etc. and if clients don't turn up we earn nothing and are out of pocket for travel etc. (which is my case is a roughtly 32 mile round trip).

Will take some time to weigh up the options as I don't want to be pressured into the work just because I might earn some money in the short term only to find out I'm in a worse financial position in the long term.

unholyangel

Can they guarantee a minimum number of clients per week/month? Ask them. If they can, then at least you'll know whats the minimum you will earn.