Self-employed 'worker'

Notmyrealname

Uncertain wrote: »

Indeed they should but that is not the point.

The rules regarding employment v. "sham" self employment get ever tighter. What the "employer" and "employee" agree to class it as has almost nothing to do with it.

If the situation is one that the law thinks should be treated as employment then the employee is entitled to all the benefits that would have come from employment such as paid holidays, unfair dismissal protection etc. The fact that these were allegedly factored in to the hourly rate is no defence.

Actually it is a defence as rolling up holiday pay was deemed legal if it was clearly stated.

Also if it is decided it is employment then all the tax deductibles the "self employed" person has been claiming then potentially become repayable with a bill sent to the "employee" from HMRC. It then gets more serious if the employee is claiming income related benefits such as tax credits and has declared their income as being gross income less tax deductible expenses.