New job but not on payroll

VeeBee16

Hi,

I've just taken on a new job where I'm paid by the amount of pieces that I make rather than hourly/annually. I'm only working two days a week for this company - six hours one day and four hours the other day (although I can change hours/days to suit my childcare needs).

I've been told that I'm being paid as a contractor rather than being on the payroll. I have no idea what this means with regard to paying tax/no and it seems my employer (well, the manager that I discussed it with, anyway) is also unsure.

I've been paid for the first two weeks I've worked - I had to write down how many pieces of made on each day, and then they calculated what I was due and dumped it into my account with no paperwork to accompany the payment. I therefore have no paper trail to show why I'm receiving money from this company.

Does anyone have any practical advice for what I need to do with regard to declaring income etc? Should I issue them with an invoice on a regular basis (they seem to want to pay me every two weeks, maybe so that the amounts stay under some kind of threshold?) so that they and I have a record? I'm clearly more concerned than they are but I don't know if I'm right to worry or if all is fine because of the few hours I do per week.

Thanks:)

jobbingmusician

I would suggest that you contact HMRC and ask their advice. However, it does sound to me as if you are actually an employee and this company is just trying to avoid their responsibilities by treating you as a contractor.....

Masomnia

Sounds like sham self-employment to me.

I would suggest you keep good records of what you have worked, what you have been paid and when, and get in touch with HMRC to get their advice on what you need to do next and what paperwork you will need.

xapprenticex

they are up to something, that's for sure

getmore4less

do you make NMW.

https://www.gov.uk/minimum-wage-different-types-work/paid-per-task-or-piece-of-work-done

as above full records of your work, get the names of others then report to HMRC.,

agrinnall

While it may be convenient for your childcare arrangements the whole set up sounds very dodgy. Although you're unlikely to get into trouble I'd say there's a strong possibility that your 'employer' will, and they may end up owing you money. I'd look for something that's more properly organised.

Oakdene

VeeBee16 wrote: »

Hi,

I've just taken on a new job where I'm paid by the amount of pieces that I make rather than hourly/annually. I'm only working two days a week for this company - six hours one day and four hours the other day (although I can change hours/days to suit my childcare needs).

I've been told that I'm being paid as a contractor rather than being on the payroll. I have no idea what this means with regard to paying tax/no and it seems my employer (well, the manager that I discussed it with, anyway) is also unsure.

I've been paid for the first two weeks I've worked - I had to write down how many pieces of made on each day, and then they calculated what I was due and dumped it into my account with no paperwork to accompany the payment. I therefore have no paper trail to show why I'm receiving money from this company.

Does anyone have any practical advice for what I need to do with regard to declaring income etc? Should I issue them with an invoice on a regular basis (they seem to want to pay me every two weeks, maybe so that the amounts stay under some kind of threshold?) so that they and I have a record? I'm clearly more concerned than they are but I don't know if I'm right to worry or if all is fine because of the few hours I do per week.

Thanks:)

Do you know how much you are expected to receive per piece made? If so you already know how many pieces you made during the first 2 weeks therefore times them together & see if it equates to the figure that hit your account.

If its less then there could be tax/NI deductions there.

VeeBee16

Thanks for your replies. The rate I get paid per piece means that, at the rate I personally work, I get almost double the NMW. I feel a bit stuck - my brother in law got me the job so I don't want to rock the boat but I know I need to say something. I'll contact hmrc like you advise and see what they suggest.

Thanks for your help. :beer:

HappyBirthday

There are advantages and disadvantages for workers of being employed or being a contractor.

e.g. as an employee, you would be get the minimum wage, sick pay, maternity pay, protection against unfair dismissal,etc.

As a contractor, you are able to claim more deductible expenses against taxable income. You pay your tax in arrears generally giving you use of the money for longer.

An employer cannot just unilaterally classify you as self-employed. If you wanted to challenge your status as a contractor at an industrial tribunal or HMRC tribunal, you would probably win. Your employer appears to be trying to skirt around obligations under tax legislation (PAYE) and employment law.