Going Self Employed

DrowninginDebt

Hi all, for the past 9 years I have worked for a major holiday company, several times a year abroad, on fixed term contracts.  I commenced when I "retired" from office life and so receive the state pension and two private pensions, paying tax, hence, I only do this work for love of the job - the travelling and helping guests.
However, the company now want us all to go self employed and I am content I have only been offered two assignments of 2 weeks each.  I will receive an extra £38 per day and the company will still pay for travel to and from my assignments.
I would value your opinion and advice if it is worth the hassle of setting up a company, arranging a business bank account, doing my own tax returns, arranging indemnity insurance and potentially engaging an accountant for this amount of work?
Or, as I am only doing 4 weeks work, then it won't be too onerous a task sorting my own tax affairs and so not needing an accountant?
Thanks in advance!

M_anonymous

Just do it as self-employed as yourself. Register for self assessment - https://www.gov.uk/register-for-self-assessment 

You can fill out your own self assessment tax return with ease.  You know your income from your pensions and this travel agency on the side.  
https://www.gov.uk/self-assessment-tax-returns/sending-return 

To be quite honest, you also get the first £1,000 "free" anyways just thinking whilst writing this post so you may be thinking too much into it - https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return 

You can always speak to an accountant or a couple of accountants to gauge their thoughts for free for 30 mins or so. Hopefully one or two appear here. 

DrowninginDebt

Thank you so much, M_anonymous - I will follow your links.  It might not be as daunting as I feared, hopefully! Cheers

Savvy_Sue

Just checking: what does the holiday company require? You mention indemnity insurance - what's that covering? 

DullGreyGuy

DrowninginDebt said:

 arranging indemnity insurance 

What countries are you going to be working in?
By indemnity are you talking about Public Liability and/or Professional Indemnity? What limits are they asking for?

No idea on your day rate but given its only 4 weeks work a year the insurances could eat a big chunk out of it but if you only need it to wash its face then that may not be a problem

DrowninginDebt

Thank you both for your comments.

Hi Savvy_Sue, I think I was confused with liability insurance eg if a guest falls and tried to claim against me as a self employed contractor? 

And DullGreyGuy, I will be working in Portugal. And doubt I would be able to take out liability insurance just for 2 weeks each time, if I do in fact need it?

The contract wording is:- 
You shall maintain in force, appropriate insurance to cover the liabilities that may arise under this agreement and shall supply copies of the insurance policy.
The requirement shall not apply if such insurance is not generally available in that country

I have read that employing Portugese workers, insurance is mandatory but I'm unable to find info on UK contractors working in Portugal?

DullGreyGuy

DrowninginDebt said:

Thank you both for your comments.

Hi Savvy_Sue, I think I was confused with liability insurance eg if a guest falls and tried to claim against me as a self employed contractor? 

And DullGreyGuy, I will be working in Portugal. And doubt I would be able to take out liability insurance just for 2 weeks each time, if I do in fact need it?

The contract wording is:- 
You shall maintain in force, appropriate insurance to cover the liabilities that may arise under this agreement and shall supply copies of the insurance policy.
The requirement shall not apply if such insurance is not generally available in that country

I have read that employing Portugese workers, insurance is mandatory but I'm unable to find info on UK contractors working in Portugal?

A guest falling because you left a trailing cable across the hotel foyer would be covered by Public Liability insurance. If you advised a customer that the only way to get from Lisbon to Madrid was to hire a private jet and they then pursued you because they later find out there is a £12 direct bus then that would be Professional Indemnity. 

I assume you won't be hiring any employees or subcontracting so Employers Liability isn't relevant for you. 

PL in principle you could get a short term policy for or take an annual one and cancel it early. 

PI is materially different because its written on a claims made basis so unlike most other classes of insurance you dont claim on the policy in force at the date you gave the bad advice but instead claim on the insurance thats in force on the date you become aware they are suing you. If you were in the UK the law of limitations is 6 years and so in principle you'd need to keep buying the insurance for many years after stopping if you wanted to continue to be protected. 

Your contract states you do need to, so it comes down to if you can negotiate that out of the contract or at a minimum, change it to state what actual insurance and limits you are required to hold. 

As a contractor myself I am required to hold EL, PL and PI insurance with limits of £10m, £2m, £1m respectively. Arguably I dont legally require the EL but as its part of a package it adds £20 a year to the premiums and secondly given I do need a substitution clause in my contract its some evidence that the clause is "real" and not just an IR35 trick

DrowninginDebt

Wow, DullGreyGuy, it's a minefield with all the different insurances and amounts but guess it's worth it if ever a claim was made against me.
It brings to mind an incident in October during a music quiz one evening when a very lively and effervescent guest, ran past myself and 2 colleagues to grab a barman to dance, not noticing the step and fell.  Joking and laughing throughout, she was taken to hospital and came back with a sling - she had broken a bone at the top of her arm which didn't require immediate surgery but advised to seek medical help on return so continued with her river cruse until returning home 4 days later, still happy and smiling.  I was shocked and angered when the company contacted me as she is now claiming compensation as she claims no First Aider attended (myself and most of the crew are trained!) and had to ask for an ambulance which is incorrect as we offered help immediately and each time we checked with her within the following 2 hours - all totally wrong!! So is this the type of case I need to be protected against in which case I am happy for the insurances!

DullGreyGuy

So bodily injury would be a PL claim, unless they were your employee or subcontractor in which case EL. 

Spurious claims is the one thing people often dont think of. Insurance doesn't just pay out when you are found liable for damages but they will defend you (as they see fit) when there are allegations against you even when they are spurious. Repudiating such claims is a notable amount of claims operational spend.

DrowninginDebt

Hi again, DullGreyGuy, I would not be employing anyone or subcontracting - just being a contractor for the travel company,
By PL - would that be Personal or Public Liability - or both? Apologies for so many questions but it's all new to me!

DrowninginDebt

Thanks, DullGreyGuy, I've just looked back at your message yesterday explaining the types of insurance  much appreciated!