Was employed but now told I am self employed.

Undervalued

Lulu0110 said:

My son was employed for over a year in London and was recently told by his employer that the is now self employed. As he didn't realise the implications he didn't get paid as he didn't put in an invoice. He is not self employed, he works for one company who tell him where to be and what shifts to work. He will now not get NI, holiday or sick pay. How can they get away with this?

As he has been there for less than two years he can easily be dismissed. So his best bet may be to go along with this until he has a preferable alternative lined up.

The "self employed" concept is more complicated. The factors you list are relevant but they are are not the only considerations. The good news is that as long as he declares his income to HMRC any comeback for getting the employment status wrong will be on the company and not your son.

In a self employed situation he would need to charge a significantly higher daily rate to compensate for the lack of paid holiday etc.

If he is really an employee, despite the company pretending otherwise, he may well be able to take any employment dispute to an employment tribunal. An ET can make their own judgement on employment status which can, occasionally, be different to HMRC's view. Neither is binding on the other!

General_Grant

Undervalued said:

Lulu0110 said:

My son was employed for over a year in London and was recently told by his employer that the is now self employed. As he didn't realise the implications he didn't get paid as he didn't put in an invoice. He is not self employed, he works for one company who tell him where to be and what shifts to work. He will now not get NI, holiday or sick pay. How can they get away with this?

As he has been there for less than two years he can easily be dismissed. So his best bet may be to go along with this until he has a preferable alternative lined up.

The "self employed" concept is more complicated. The factors you list are relevant but they are are not the only considerations. The good news is that as long as he declares his income to HMRC any comeback for getting the employment status wrong will be on the company and not your son.

In a self employed situation he would need to charge a significantly higher daily rate to compensate for the lack of paid holiday etc.

If he is really an employee, despite the company pretending otherwise, he may well be able to take any employment dispute to an employment tribunal. An ET can make their own judgement on employment status which can, occasionally, be different to HMRC's view. Neither is binding on the other!

And if HMRC decide it was not self-employment, the income he received would, I believe, be treated as received by him as nett of income tax.  Therefore the employer would need to pay HMRC the tax "deducted" and the employee would be in a credit situation with HMRC.