Self employed but not!

George1976

Hi,
I'm hoping someone can give me some advise. i have been offered a job and so really need it but when the lady asked me if I wanted it she said the wages aren't great. I still accepted as I thought it would have to be minimum wage. I started on Monday she has given me my hours and I work in her home alongside a two other women as childminding assistants. She has told me now that I need to register as self employed and the wages are only £5 per hour. Even at that rate of pay it's more than I had but I don't think it can be right as I'm obviously not self employed. I do need the job and it is impossible for me to report her as she wouldn't give me any more hours. Is there an anonymous way of reporting it so that we can at least get minimum wage? Thanks in advance.

Carl31

You can report her, but will probably lose your illegal job

Probably best to find something else, as at any point you could be out on your ear. Do the parents know about how shes set up?

DomRavioli

George1976 wrote: »

Hi,
I'm hoping someone can give me some advise. i have been offered a job and so really need it but when the lady asked me if I wanted it she said the wages aren't great. I still accepted as I thought it would have to be minimum wage. I started on Monday she has given me my hours and I work in her home alongside a two other women as childminding assistants. She has told me now that I need to register as self employed and the wages are only £5 per hour. Even at that rate of pay it's more than I had but I don't think it can be right as I'm obviously not self employed. I do need the job and it is impossible for me to report her as she wouldn't give me any more hours. Is there an anonymous way of reporting it so that we can at least get minimum wage? Thanks in advance.

If you're a childminders assistant (which is what I think is happening here) you can be self employed, even if you contract through someone else (the childminder themselves).

You could speak to someone about it, but I'm not sure you'll get very far.

agrinnall

If the job is required to pay minimum wage and doesn't then you can report the employer to HMRC who may prosecute. But even if the prosecution is successful you'll probably be out of a job.

https://www.gov.uk/national-minimum-wage/worker-disputes-over-minimum-wage

George1976

So I am damned if I do and damned if I don't really. Just think it's really unfair to be paid so much less than minimum wage but I'm going to have to get on with it I think. I appreciate the help. Thanks

George1976

Carl31 wrote: »

You can report her, but will probably lose your illegal job

Probably best to find something else, as at any point you could be out on your ear. Do the parents know about how shes set up?

I wish it was that easy to find something else I could fit in with my own childcare. Other people have said it's perfectly legal? Maybe not very moral but legal
thanks for taking the time to answer me.

elsien

If you count as self employed, does that mean you have to register with HMRC and pay your own tax and NI out of the wages you're being paid (if liable for them)? And are you expected to have your own liability insurance? You also won't get holiday pay or sick pay.
Self employed also generally means that you have the option to accept work or not, and to work for other people not just one employer . I'm guessing none of that applies.
My personal opinion is she's taking the proverbial. In your place I'd be checking out all the expectations very thoroughly indeed from all angles.

Flyonthewall

As self employed £5 an hour is legal, there is no minimum wage.

However, it maybe that it's self employed to avoid dealing with holidays, sick pay, minimum wage and so on. If they're setting the hours and basically telling you what to do and when then you should be employed, not self employed.

Alderbank

Who does the DBS checking? Is it 'the lady' even though the childminders are not her employees?

Prothet_of_Doom

George1976 wrote: »

So I am damned if I do and damned if I don't really.

NO. Don't stoop this low. This person is a criminally minded low life. Ask for a contract in writing and then forward it to the HMRC. Move on to another job.

Google IR35 whilst you are at it. :mad:

Prothet_of_Doom

Flyonthewall wrote: »

As self employed £5 an hour is legal, there is no minimum wage.

However, it maybe that it's self employed to avoid dealing with holidays, sick pay, minimum wage and so on. If they're setting the hours and basically telling you what to do and when then you should be employed, not self employed.

Indeed.

IR35 tests define the differences between self employed and employment.

If you are self-employed you need liability insurance.
If you are self-employed you are responsible for putting right any mistakes free of charge, you set your own rate, and hours, and you don't get sick pay or holidays and £5 an hour does not cover your costs.
In my humble opinion anything less than £12 a hour would not actually give you minimum wage after you take out all the costs associated with being self employed.