Query about Self Employment

Candy53

Hi,

Hope someone can put me right about something.

If someone, instead of being an employee of a company, work for them as self employed, do they still have to pay business tax, and have a registered business name, and address?

A company, which is basically a warehouse, where they sell stuff, has offered my son a job, but don't want to put him on the books. Instead, they want him to work for them as self employed.


Thanks,
Candy

Southend1

Candy53 wrote: »

Hi,

Hope someone can put me right about something.

If someone, instead of being an employee of a company, work for them as self employed, do they still have to pay business tax, and have a registered business name, and address?

A company, which is basically a warehouse, where they sell stuff, has offered my son a job, but don't want to put him on the books. Instead, they want him to work for them as self employed.


Thanks,
Candy

What is the job? May well be the employer is trying to avoid their duties towards employees by attempting to class them as self employed

Candy53

It's mainly putting together flat packed furniture and bikes, etc., ready for selling in the shop part, and selling stuff to customers.


Candy

Horace

That sounds like employment to me.

If your son was self employed then he would be able to choose his hours and his own clients, he would need his own public liability insurance and pay his own tax and national insurance. If he is working purely for one person e.g. this warehouse then he is an employee and the HMRC will view him as an employee, the employer has to pay him a wage after removing tax and NI. It sounds as though the employer is trying it on.

Southend1

Will he be providing his own tools? Can he choose when to work and when not to? Can he choose where to work?

If the answer to any of these is no, he wouldn't be truly self employed.

I'm not an expert and can't advise further but I suggest looking into tax implications. The employer may well find your son is classed in law as an employee even if the company says otherwise.

Someone more knowledgeable than me may be along to advise further.

Candy53

Horace wrote: »

That sounds like employment to me.

If your son was self employed then he would be able to choose his hours and his own clients, he would need his own public liability insurance and pay his own tax and national insurance. If he is working purely for one person e.g. this warehouse then he is an employee and the HMRC will view him as an employee, the employer has to pay him a wage after removing tax and NI. It sounds as though the employer is trying it on.

Thanks,

Yeah, it does sound like that to me too, although more and more companies are doing this. I know someone who works for a parcel delivery company, and they all have to be self employed. It just takes the responsibility off them, I reckon.

Candy

Candy53

Southend1 wrote: »

Will he be providing his own tools? Can he choose when to work and when not to? Can he choose where to work?

If the answer to any of these is no, he wouldn't be truly self employed.

I'm not an expert and can't advise further but I suggest looking into tax implications. The employer may well find your son is classed in law as an employee even if the company says otherwise.

Someone more knowledgeable than me may be along to advise further.

Thanks,

All that hasn't been discussed yet, but they will have their own tools.


Candy

Candy53

Just an update. My son told his boss that he wouldn't go self employed, so he wouldn't be working there. His boss then, decided to put him on the books, as he said he does want him to work for him, so he starts on Monday, thank goodness.


Candy

LittleVoice

Candy53 wrote: »

Just an update. My son told his boss that he wouldn't go self employed, so he wouldn't be working there. His boss then, decided to put him on the books, as he said he does want him to work for him, so he starts on Monday, thank goodness.


Candy

Thanks for letting us know.

So in Horace's words, they were "trying it on".

It's good to hear of someone standing up to a company on this.

Southend1

Candy53 wrote: »

Just an update. My son told his boss that he wouldn't go self employed, so he wouldn't be working there. His boss then, decided to put him on the books, as he said he does want him to work for him, so he starts on Monday, thank goodness.


Candy

Well done him for making a stand. Good outcome!

Make sure he joins a union ASAP - all the more important given he knows he has a boss who likes to try it on.