Employed or Self-Employed-Who Pays?

jessrobbie_2

I have recently left my employer but continue to work for them on a "retained basis" as a Self-Employed engineer.(Registered as a Sole Trader)

What this actually means ,is that I now do the same work, but on my own terms.
They are invoiced by myself on a monthly basis.

I have "guaranteed" them that I will be available to carry out any duties that they require on pre-agreed days throughout the month.Should they have no work for me on these days they are still obliged to pay me!!!.


Am I right in assuming that if the HMRC decide that my status of working during these periods is NOT on a Self- Employed basis ,but, that I am still regarded as an employee,then they will recover any PAYE monies from my "employer" and NOT from myself?

What implications would this have on the monies/invoices I have already acquired?



Any suggestions greatly appreciated.

Cook_County

No - you are not correct. HMRC may collect money from you both.

You are potentially losing employment law protection, part of your State pension in old age & arguably complicit in an attempt to defraud the public purse (or everyone would be doing it). What does your solicitor think?

RayWolfe

Have you read the Employed/Self Employed document from HMRC? You sound like an employed person to me.

Murdina

I think it most unlikely that HMRC having looked at the full facts - especially the bit about keeping yourself available on certain days - would agree you were self-employed. Your "employer" may not appreciate that following a tax decision "Demibourne" if HMRC decide you were an employee they have to account for tax and NI and can no longer as in the past notionally offset the tax you have paid as self-employed. When HMRC do a PAYE "audit" of your employer they may ask to see all invoices made out to individual businesses of any kind as a way to identifying people just such as yourself. They may then agree just to treat you as an employee from then on if you and your employer are lucky. If you personally feel it is to your advantage to be self-employed then one way to improve the situation is to find several more clients to work for.