Terrible time to go Schedule-D?

Bitbaffled

Hi! I hope this is ok to ask - 
I've just been promoted and in negotiating pay the question of PAYE vs Schedule D has come up (ie they'll consider paying me more if I move from PAYE to schedule D, obviously due to the NI costs). Given the covid situation and the 'gaps' in support, is this a risky time to move to schedule-D?

Any advice much appreciated!

Jeremy535897

Whether you are an employee or self employed is a question of fact, not choice. I would expect a substantial change to the nature of your contract if you were to be paid under schedule D, involving loss of redundancy, holiday, sick pay etc, but with you having more flexibility on how and when you work.

Bitbaffled16

Depends on the raise amount! I would suggest talking to an accountant and maybe even a mortgage adviser to see if it is worth the additional costs and reduction in benefits such as maternity pay 

JCS1

Enter details into here, HMRC have several guidance/notes that they use to determine employed vs self employed status.
https://www.gov.uk/guidance/check-employment-status-for-tax

epm-84

Isn't a bit strange a new member has started a thread and another new member with almost the same username has posted a reply?

Being self-employed means instead of requesting time off (for holiday or an appointment) you tell the business when you are unavailable and adjust your invoices accordingly, opposed to asking permission for permitted time off and getting paid as usual.

Bitbaffled

epm-84 said:

Isn't a bit strange a new member has started a thread and another new member with almost the same username has posted a reply?

Being self-employed means instead of requesting time off (for holiday or an appointment) you tell the business when you are unavailable and adjust your invoices accordingly, opposed to asking permission for permitted time off and getting paid as usual.

That would be my idiot of a colleague who thought it would be amusing to ‘help’ with my question when I mentioned I’d posted here. 

Thank you for answering anyway, that’s really helpful thank you! 

Bitbaffled

Jeremy535897 said:

Whether you are an employee or self employed is a question of fact, not choice. I would expect a substantial change to the nature of your contract if you were to be paid under schedule D, involving loss of redundancy, holiday, sick pay etc, but with you having more flexibility on how and when you work.

Thanks Jeremy, it’s a bit of an odd one, I’m between two roles - one in which you’re automatically PAYE and one in which you’re expected to be Schedule D. So I’m basically wondering if, given how those on schedule D fell through a lot of the corona support, now is a bad time to take that step. 

Bitbaffled

epm-84 said:

 Isn't a bit strange a new member has started a thread and another new member with almost the same username has posted a reply?

Being self-employed means instead of requesting time off (for holiday or an appointment) you tell the business when you are unavailable and adjust your invoices accordingly, opposed to asking permission for permitted time off and getting paid as usual.

(Admittedly it wasn’t bad advice, just taking the mic of my username 🤦‍♀️) 

Jeremy535897

Bitbaffled said:

Jeremy535897 said:

Whether you are an employee or self employed is a question of fact, not choice. I would expect a substantial change to the nature of your contract if you were to be paid under schedule D, involving loss of redundancy, holiday, sick pay etc, but with you having more flexibility on how and when you work.

Thanks Jeremy, it’s a bit of an odd one, I’m between two roles - one in which you’re automatically PAYE and one in which you’re expected to be Schedule D. So I’m basically wondering if, given how those on schedule D fell through a lot of the corona support, now is a bad time to take that step. 

Newly self employed got no support, but those who had been self employed for a couple of years had some benefits, as they could keep working and get a grant. Employment is safer, but less flexible than self employment.

Bitbaffled

Jeremy535897 said:

Bitbaffled said:

Jeremy535897 said:

Whether you are an employee or self employed is a question of fact, not choice. I would expect a substantial change to the nature of your contract if you were to be paid under schedule D, involving loss of redundancy, holiday, sick pay etc, but with you having more flexibility on how and when you work.

Thanks Jeremy, it’s a bit of an odd one, I’m between two roles - one in which you’re automatically PAYE and one in which you’re expected to be Schedule D. So I’m basically wondering if, given how those on schedule D fell through a lot of the corona support, now is a bad time to take that step. 

Newly self employed got no support, but those who had been self employed for a couple of years had some benefits, as they could keep working and get a grant. Employment is safer, but less flexible than self employment.

Great to know, thank you!