Self Employed - Can I have a volunteer?

rose915

I can't seem to find an answer for this. I am self employed and run a small freelance business. If I am ill or unable to work for some reason, is it okay to have an unpaid volunteer take on some of the work just to keep the business ticking over? Admin and such? I'm just thinking of contingency and if my partner could step in and and do minor tasks if I was unable to?

Grumpy_chap

rose915 said:

I can't seem to find an answer for this. I am self employed and run a small freelance business. If I am ill or unable to work for some reason, is it okay to have an unpaid volunteer take on some of the work just to keep the business ticking over? Admin and such? I'm just thinking of contingency and if my partner could step in and and do minor tasks if I was unable to?

You can have someone else take on some of the work, but they should be paid at the appropriate market rate for the task they perform, NMW at least.

Would you volunteer to keep someone else's business going while they are unable to and yet you get nothing for your time and effort while the someone else gets everything?

rose915

Grumpy_chap said:

rose915 said:

I can't seem to find an answer for this. I am self employed and run a small freelance business. If I am ill or unable to work for some reason, is it okay to have an unpaid volunteer take on some of the work just to keep the business ticking over? Admin and such? I'm just thinking of contingency and if my partner could step in and and do minor tasks if I was unable to?

You can have someone else take on some of the work, but they should be paid at the appropriate market rate for the task they perform, NMW at least.

Would you volunteer to keep someone else's business going while they are unable to and yet you get nothing for your time and effort while the someone else gets everything?

Oh I totally get that. When I say partner, I mean my long term fiance who i live with. He would benefit from this without directly being paid a wage as it's paying our rent and bills!

So I understand fully that in a proper environment of course not. But in a scenario like this?

LessImpecunious

When my partner (in life) started a self-employed business I carried out aspects of the business unpaid (mainly bookkeeping and latterly maintaining a website), and our accountant implied that this was fairly normal practice with the "volunteer" partner perhaps moving to a paid role once it was advantageous for tax purposes (when the business profit exceeded my partner's tax allowance). This was a few years ago though! Found this, which suggest a family member living with you does not need to be paid (the National Minimum Wage, at least): https://www.lawdonut.co.uk/business/employment-law/pay-and-pensions/minimum-wage-and-statutory-pay-obligations). And HMRC say this: "work carried out by a family member, living at the family home of the employer and participating in the running of the family business, falls outside the National Minimum Wage provisions". Neither make it clear whether someone can work voluntarily for no pay tho', and the lawdonut page suggests consulting an accountant or solicitor...

Grumpy_chap

LessImpecunious said:

Found this, which suggest a family member living with you does not need to be paid (the National Minimum Wage, at least): 

Jeremy (who will be correct) confirmed that in this recent thread:

Jeremy535897 said:

Assuming that you live together, the national minimum wage regulations do not apply, but you must operate a payroll unless she is the sole employee and paid no more than £120 a week.

https://forums.moneysavingexpert.com/discussion/6345549/sole-trader-paying-wife/p1

The situations are different, but that part at least would seem common to both.

Jeremy535897

Grumpy_chap said:

LessImpecunious said:

Found this, which suggest a family member living with you does not need to be paid (the National Minimum Wage, at least): 

Jeremy (who will be correct) confirmed that in this recent thread:

Jeremy535897 said:

Assuming that you live together, the national minimum wage regulations do not apply, but you must operate a payroll unless she is the sole employee and paid no more than £120 a week.

https://forums.moneysavingexpert.com/discussion/6345549/sole-trader-paying-wife/p1

The situations are different, but that part at least would seem common to both.

That's very flattering. As you say, the situations are different (a wife rather than a fiancé, I recall, and the issue was paying her to reduce profits), but the definition of "family member" will include a fiancé living in the same house, and so will be exempt from the provisions.

J_B

Grumpy_chap said:

Would you volunteer to keep someone else's business going while they are unable to and yet you get nothing for your time and effort while the someone else gets everything?

If it was someone I loved - yes, certainly

Mistral001

Don't jump your hedges util you get to them.  You do not know when a situation like this will occur.  Why worry about it now?