redundancy - Self Employed - Fixed Term Contract

twentyfour11

Its the classification which is paramount. On the form it refers to "freelance". I have worked for this company for almost 20 years. Its 5 days a week work 42 hours a week. This is true and easy for me to prove. I am not saying I will 100% get the pay out but the insolvency guy said you should complete the form. I also spoke to an accountant on this who said the same.


The fact is that under UK law you can be self employed but still have employment rights dependent upon your circumstances.

twentyfour11

A self-employed person by definition does not have employment rights. But a self-employed person can have worker's rights.
The definition of a worker is contained in section 230 (3) of the Employment Rights Act 1996 as:

an individual who has entered into or works under a contract of employment or any other contract... whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or customer of any profession or business undertaking carried on by the individual

notanewuser

twentyfour11 wrote: »

It seems that I am going to get redundancy payment even though I am self employed.

twentyfour11 wrote: »

I am not saying I will 100% get the pay out but the insolvency guy said you should complete the form. I also spoke to an accountant on this who said the same.

Make your mind up.

I suspect it's a "might as well fill it in, nothing to lose" type situation, but there's next to no chance of you getting redundancy (accountants are not experts in this field. )

notanewuser

What was your contract for?

PlutoinCapricorn

If you do get something, it might be out of goodwill or because they are afraid that you will decide that you have been an employee all along.

notanewuser

PlutoinCapricorn wrote: »

If you do get something, it might be out of goodwill or because they are afraid that you will decide that you have been an employee all along.

I wonder what happens with all of the backdated tax and NI that becomes due........ Ordinarily the business would be liable, but where the business is bust............?

twentyfour11

You are missing the point. Its classification. I have declared every penny of the money earned and NI Class 4 has been paid so their is no issue with back tax.

The advice comes from the insolvency guy for the liquidated company. By the way its a reasonably solvent situation and the debts were very small but both directors out of the blue decided to close the company

notanewuser

twentyfour11 wrote: »

You are missing the point. Its classification. I have declared every penny of the money earned and NI Class 4 has been paid so their is no issue with back tax.

The advice comes from the insolvency guy for the liquidated company. By the way its a reasonably solvent situation and the debts were very small but both directors out of the blue decided to close the company

No, you are missing the point. If HMRC decide that actually, you weren't self-employed after all, they'll come after you for additional tax and NI (class A is 12% - more than the 9% you've been paying) and employers' NI at 13%. They can go back at least 6 years. And they can make those that don't pay bankrupt and seize assets.

This may not be a pot you want to stir.

notanewuser

http://www.freelanceadvisor.co.uk/resources/am-i-an-employee-self-employed-freelance-or-a-worker/

twentyfour11

No...its not me who has this wrong....Its status and in my situation I have worker status rights even though I am self employed...says so in the link...I have 19 years full working for this company over 35 hours a week..the fact that I am self employed is not relevant......the company out of the blue went into liquidation and I have status.

Please don't try and scare me with worries of back tax etc etc...that's not the advice I have from two experts......Have to say its very poor comment from someone who fails to take a grasp of my individual situation.