Employer wants me to go self employed

eezyrider7

Hi all
I have a friend that is the stable manager and riding instructor at a small riding school - only 3 other employees plus the couple whose school it is. They have asked her to go self employed and offered to increase her wages by £60 per week to compensate for the loss of employment rights etc. She seems quite excited at the prospect of such a wage rise but I have advised caution.


I know nothing about this kind of thing and was wondering if anyone could offer any advice and whether this would actually be a good idea for her?


Thanks in advance.


EZ

Mojisola

This is worth reading -
https://www.hmrc.gov.uk/working/intro/empstatus.htm

Squeaky91

HMRC are very particular over who can and cannot be classed as self employed... if you read the link that Mojisola posted above then this explains the differences and hopefully she will quite clearly fit into one of the categories.

If she were to go self employed, as you say she would loose out on employment benefits. She would also be responsible for her own Income Tax and National Insurance contributions and would have to register as self employed and submit annual returns.

Mojisola

Squeaky91 wrote: »

If she were to go self employed, as you say she would loose out on employment benefits. She would also be responsible for her own Income Tax and National Insurance contributions and would have to register as self employed and submit annual returns.

And any holidays or days she is off for illness would be unpaid.

Sncjw

Hmm sounds like under hmrc she would still be employed if she is working at the same place all the time and set times from what I see extra £60 pee week.

I think they are trying to make it look like she is self employed so she doesn't have employment rights as you state,

eezyrider7

Thanks for the advice. From the HMRC site it would appear she can't be classes as self employed. Can they force her to do this?
If they do is £60 per week extra reasonable recompense?


EZ

Mojisola

eezyrider7 wrote: »

From the HMRC site it would appear she can't be classes as self employed. Can they force her to do this?

Not legally. They are trying to get out of paying employer's NI contributions and all their other responsibilities.

If they do is £60 per week extra reasonable recompense?

Is the £60 on top of her wages before tax? She will need to sort out her own NI and tax, get public liability insurance, change to business insurance on her car, put a proportion of the weekly money aside to cover any weeks she is on holiday or sick, etc.

After all that, if she's only working for one client, the HMRC are likely to decide that she's not SE at all.

ohreally

The thread is titled...

Employer wants me to go self employed

however your first line states

I have a friend that is

Which one is it?

eezyrider7

Mojisola wrote: »

Is the £60 on top of her wages before tax? She will need to sort out her own NI and tax, get public liability insurance, change to business insurance on her car, put a proportion of the weekly money aside to cover any weeks she is on holiday or sick, etc.

After all that, if she's only working for one client, the HMRC are likely to decide that she's not SE at all.

Yes, the £60 is before tax. They have said that they will cover public liability insurance, CRB checks etc. Hadn't thought about business insurance for her car - good point. Will tell her to check that out.


EZ

Icematikx

eezyrider7 wrote: »

Yes, the £60 is before tax. They have said that they will cover public liability insurance, CRB checks etc. Hadn't thought about business insurance for her car - good point. Will tell her to check that out.


EZ

What they say, and do, is completely different. My guess, is that as horse riding instructors, they will have slow days and busy days. I'm not saying they will, but they could, simply tell your friend not to turn up 3-days of the week because they aren't busy enough. There will be no set hours.

It all boils down to how much your friend trusts him. I thought me and my boss were close, until I realised that business is business.

skivenov

Other point is that, from their point of view, they can finish her with no notice or reason, and lay her off with no redundancy pay.