Self Employment Help!

rinefitz

Hi,

My sister started a new job as a Beauty Therapist at the beginning of September. She was very happy as this is what she had trained in and before this was unhappy working in a call centre.

When she started she was told by her Boss that she was going to be self employed. All the other staff were too. It would be weekly pay. The first week passed and she handed in her timesheet. She wasn't paid that week but as she had gone from a monthly salary she didn't mind too much. After the second week of non payment she got quite concerned and upon asking around was told this was quite normal. Sometimes they just get 'bits' of what they are owed when the owner has it. The business had quite obviously over committed itself on openiing a new shop and cash flow was tight.

Fast Forward to last week, my sister receieved a cheque with then bounced. My parents then told her to leave as she repeatedly tried to ask her Manager (the owner) about her pay but was not very helpful and tried to put the blame on my sister for their being hardly any business.

Once my sister left she apologised and said she would make sure she got what she was owed. Yesterday she received some monies but altogether she hasn't even been paid 3/4 of what she's owed. The Manager isn't a bit bothered either. My parents tried to ring her to discuss it but she said she doesn't speak to parents and hung up!!

I am looking for some advice as would like to put something in writing to the Manager. Just wasn't sure where my sister stood. She was paid by the hour and worked very similar patterns each week and did not use her own tools or products. Also my sister was very shocked when I told her she'd have to pay her own tax and national ins on what she's earned. I think she's been very naïve and preyed on by someone who is used to getting young girls to work for her and knowing they have no employment rights.

Any help or advice would be absolutely wonderful. Thanks if you read to the end

scheming_gypsy

As your sister was self employed she's her own boss; which means she pays her wages and not the salon boss. The salon boss just pays the invoice (timesheet) that's presented to her.

Although, as she's self employed she hasn't been tricked into working for somebody and having no employment rights. She invoices, gets paid, runs the payment through her own company and then pays her own tax and NI

Your sister could have put herself in a tricky position by being naive, if she wasn't aware that she'd have to pay her own tax and NI she's probably not set up her own company and registered it with the tax man etc. So i'm not sure how she can go about it from a legal view as she could be seen as working cash in hand and not declating earnings..

** that's from what I can see on the situation but somebody with knowledge in the area should be along soon!

rinefitz

I wondered about the difference between self employment and employee. The HMRC states that you are employed if:

• Do they have to do the work themselves?
• Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
• Can they work a set amount of hours?
• Can someone move them from task to task?
• Are they paid by the hour, week, or month?
• Can they get overtime pay or bonus payment?

My sister would answer yes to all these sections and no to all the self employed one? Just a thought....

scheming_gypsy

I think in beauty salons and a lot of hairdressers the 'staff' are self employed and rent a chair.

I'm no expert but it's just from what i've picked up but SarlE or Jarndyce (and others that i can't think of) might see the thread at some point and give some more accurate advice.

rinefitz

Hi, thanks for your help. I know a lot of hairdressers who rent a chair and are self employed. They pay so much for the rent and a % towards the products they use. They take a cut of their clients etc. I can see this is definately Self Employment and they need to do 'books' etc.

It just seems a strange set up for someone doing the same hours and same rate every week. Maybe I'm thinking too much into it. Hopefully she can just get what she's owed then work out what she needs to pay in tax etc.

Thanks

heretolearn_2

Frankly for two weeks work I wouldn't bother.