self employed at £15per hr or contracted at rate £12 per hr

where2start

can anyone advise me on what to do, been offered a position as a HGV technician but i either can join the firm as SELF EMPLOYED get a rate of £15 per hour and get to pay my own taxes etc...or go on contract and get £12 per hour. Any suggestions on the advantages and disadvantages on both sides...or which is best !!

any suggestions appreciated pse !! thank you.

WPN

What are the payment terms/cycle? How many hours a week on average?

where2start

its Mon - Fri 36hrs a week..and payment is weekly

WPN

where2start wrote: »

its Mon - Fri 36hrs a week..and payment is weekly

Even if Self-employed?

pipscot

If they want to take you on as self-employed, they need to have clearance from HMRC to do this (presumably others within the firm are also self-employed?). They can't just "decide" that you are self-employed because it suits you or them - they would have to demonstrate that you are in fact self-employed (can choose your working hours, can decide to work for other companies as well, you invoice them for work you have done etc)

Presuming they have done that and that the work legitimately counts as self-employed:
Being self-employed means you have no "contract" and can be laid off at any time without notice, the working hours regulations with regard to breaks etc doesn't apply to you, they can offer you less work if it suits them, you won't be entitled to contributions based JSA if you are laid off, you need to fill in a self-assessment each year to work out your tax bills, (you need to register with HMRC as a "self employed person" as soon as you start this work) and you need to pay Class 2 and Class 4 NIC BUT you may earn more (and claim back any legitimate expenses such as tools, use of home etc)
Being employed means you may earn less but you have more protection in terms of your contract and your tax/NIC situation is taken care of for you.
You would have to decide which suits you better!
One other thing - if self-employed are they expecting you to provide equipment such as tools that would be provided by them if you were employed.

ab7167

Think also about paid holidays and sick leave. IIRC holiday allowance for employed people is 12.07% - i.e. your £12/hr covers you to take 5.6 weeks a year off fully paid, giving you an equivalent rate of about £13.45. Add in say 3 or 4 days of sick leave a year and it's getting closer to that £15.

paddyrg

I would take the £12/hr employed - no major benefit to being SE if there's no financial advantage (and any there is would be marginal).

doodlesmum

I am married to a self employed plumber,he has been for years and we have managed fine but as others have stated the bad side is you get no sick pay,no holiday pay,no work, no pay and your tax"s are your responsibility,the good side is you can choose your own working hours and you are your own boss.
For the £3 difference though i would seriously consider the contract you are better protected financial wise and if you cant work through sickness at least you are covered for sick pay.Good luck with which choice you choose to take .

where2start

pipscot wrote: »

If they want to take you on as self-employed, they need to have clearance from HMRC to do this (presumably others within the firm are also self-employed?). They can't just "decide" that you are self-employed because it suits you or them - they would have to demonstrate that you are in fact self-employed (can choose your working hours, can decide to work for other companies as well, you invoice them for work you have done etc)

Presuming they have done that and that the work legitimately counts as self-employed:
Being self-employed means you have no "contract" and can be laid off at any time without notice, the working hours regulations with regard to breaks etc doesn't apply to you, they can offer you less work if it suits them, you won't be entitled to contributions based JSA if you are laid off, you need to fill in a self-assessment each year to work out your tax bills, (you need to register with HMRC as a "self employed person" as soon as you start this work) and you need to pay Class 2 and Class 4 NIC BUT you may earn more (and claim back any legitimate expenses such as tools, use of home etc)
Being employed means you may earn less but you have more protection in terms of your contract and your tax/NIC situation is taken care of for you.
You would have to decide which suits you better!
One other thing - if self-employed are they expecting you to provide equipment such as tools that would be provided by them if you were employed.

hiya...thank you all for the posts, greatly appreciated and having read this post i am more clear about the two and what the advantages are ..cheers

scooby088

I think i would go with the employed option everytime.

HappyMJ

I'd go the self-employed route every time. Employed through a limited company of which I am a director paid as an employee on a rate that avoids any PAYE tax so it protects my rights to contibutions based benefits. The remainder of the income after any expenses (you can buy all all your own tools out of this tax free) are deducted can be paid as a dividend after company tax of only 20% is paid. You need to know whether the contract rate includes annual leave or is in addition to that rate.