Self Employment Telesales job

hudson2012

I've recently found a job in Telesales but I've been told that I will have to register as self-employed which I wasn't expecting.

Is this the done thing?

Also, the job will probably be temporary for about 3/4 weeks or so, can I still register as self-employed even if the job is temporary?

PlutoinCapricorn

Many unethical employers try to escape their responsibilities and save on costs such as sick pay and holiday pay by telling people that they must be taken on as self employed. This is not acceptable to HMRC.

If they treat you as an employee i.e. you cannot negotiate your hours and pay then they should put you on PAYE. Being self employed should always be your own choice, and you should get at least one third more than an employee doing the same job would.

It is not necessary to register as self employed for a one-off, but you do need to inform HMRC that you need to complete a tax return for income that is not taxed at source.

hudson2012

PlutoinCapricorn wrote: »

Many unethical employers try to escape their responsibilities and save on costs such as sick pay and holiday pay by telling people that they must be taken on as self employed. This is not acceptable to HMRC.

If they treat you as an employee i.e. you cannot negotiate your hours and pay then they should put you on PAYE. Being self employed should always be your own choice, and you should get at least one third more than an employee doing the same job would.

It is not necessary to register as self employed for a one-off, but you do need to inform HMRC that you need to complete a tax return for income that is not taxed at source.

It looks like I will be treated as an employee but I won't be on PAYE because it's the same system for everyone.

So I just need to complete a tax return? Thanks I'll contact them this week.

SuperHan

You can't be treated as an employee and not be on PAYE (broadly speaking).

If you pass HMRC's employee test (for which there are many factors, including ability to negotiate hours, who provides the tools to do your job, being able to delegate - i.e. can you send A N Other to work in your place if you are sick) you should be on PAYE. If not, the "employer" is doing dodgy dealings... But if it's only for a few weeks and you don't care enough, don't bother reporting them.

You'll need to get in touch with HMRC if you will earn below your tax limit and they will advise you whether a tax return/self employment registration is needed.

hudson2012

Thank you very much. I passed the HMRC's employee test and I was a little surprised when I told that I would have to register as self-employed but it's the only job offer I have a the moment.

jimmo

If it’s the only job on offer I would be very tempted to take it but go in with your eyes open.

On the face of it there is something dodgy about this but taxwise, all the risks are being taken by your payer, not you.

If this turns out to be an employment HMRC will go after your employer for its failure to operate PAYE and force the employer to make good the tax and National Insurance it should have deducted from your wages along with the employer’s own liabilty to employer’s National Insurance.

HMRC will not chase you because you will have done nothing wrong.

Certainly under Tax Law your employer will have no right recover the tax and NI from you but this is where you need to keep your eyes open.

If you are required to sign a contract before starting to work look at the small print. Is there some sort of indemnity clause that states that if HMRC find that you are an employee you will have to make good to the employer the tax and NI that it is forced to pay?

Also, and completely outside of tax, there have been lots of instances of self-employed salesmen being paid “wages” which turned out to be advances on anticipated commission. The result was that when they left the job, having made no, or very few sales, they were required to repay everything they had been repaid.

I am no salesman and have been fortunate enough not to have had to venture down that route but, to me, the fact that you asked (about tax) suggests you are not a salesman either.