Self employed status

makingitright

I work for Ryanair and have a self employed contract. I have been told bt a friend that in order to qualify for self employed with HMRC you need to have more than one customer which is impossible for me. I believe that in other countries people in a similar position have been hit with massive back dated tax bills following investigation into their employment status with Ryanair. My question is should I contact HMRC now or wait and see what happens with this situation in the UK?

marcia_

https://www.gov.uk/guidance/check-employment-status-for-tax

 This can give you an idea if you are genuinely self employed 

DE_612183

No, as far as I'm aware you can have just the one client- self employed means you don't get paid via PAYE and you have no employee rights ( holidays / sickness etc ).

Not sure what you mean about back-dated tax bills - sounds like they could be referring to IR35?

Sandtree

More than one client is only one of the tests, right to substitution, who determines working location/times/practices, who provides equipement, any financial consequences you are running if poor/late work etc. There is also the test of what the contract says and if the client will actually "allow" what the contract says even if it says they do... a substitution clause you've actively used is more powerful than a theoretical one in a contract

Are you actually self employed (aka sole trader) or do you mean you operate your own LTD company?

makingitright

Sandtree said:

More than one client is only one of the tests, right to substitution, who determines working location/times/practices, who provides equipement, any financial consequences you are running if poor/late work etc. There is also the test of what the contract says and if the client will actually "allow" what the contract says even if it says they do... a substitution clause you've actively used is more powerful than a theoretical one in a contract

Are you actually self employed (aka sole trader) or do you mean you operate your own LTD company?

I was interviewed by Ryanair then forced into a Directorship of a LTD company through an agency which supplies employees to Ryanair.

Grumpy_chap

This all comes down to employment status and for a large company such as Ryan Air the IR35 determination is down to the employer / end Client, which is Ryan Air who carry the risk.  Sometimes there is a requirement for the Contractor to carry indemnity insurance to protect the Client against an incorrect determination.

The guidance for IR35 show a specific example for an Airline Pilot where the "how" and "where" and "when" is not significant - not sure whether this is relevant to the OP's role.  It was all about "how" is forced by the task  "to fly the plane safely" (but once onboard, RyanAir cannot actually control what the Pilot does) while "where and when" is forced by the schedule.
https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm0527

makingitright

Grumpy_chap said:

This all comes down to employment status and for a large company such as Ryan Air the IR35 determination is down to the employer / end Client, which is Ryan Air who carry the risk.  Sometimes there is a requirement for the Contractor to carry indemnity insurance to protect the Client against an incorrect determination.

The guidance for IR35 show a specific example for an Airline Pilot where the "how" and "where" and "when" is not significant - not sure whether this is relevant to the OP's role.  It was all about "how" is forced by the task  "to fly the plane safely" (but once onboard, RyanAir cannot actually control what the Pilot does) while "where and when" is forced by the schedule.

Well, my working pattern is controlled by a Ryanair issued roster and I am answerable to them for absence and sickness for which Ryanair control disciplinary procedures, not the agency. I also have to make myself exclusively available when I am rostered standby days which are unpaid.
Does this help at all?

DoctorStrange

Where is the legal entity you're Ltd has contracted with based?

When did the contract begin?

Do you have an SDS?

makingitright

DoctorStrange said:

Where is the legal entity you're Ltd has contracted with based?

When did the contract begin?

Do you have an SDS?

• Dublin
• Just over 2 years ago
• I don't know what SDS is so assuming no.

DoctorStrange

Is your Ltd registered in the UK?

makingitright

DoctorStrange said:

Is your Ltd registered in the UK?

No, it's registered in Dublin, but I live and work in the UK.