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Where Taxpayers and Advisers Meet

Am i classed as self employed or employed

tmc75
Posts:1
Joined:Fri Jul 21, 2017 8:46 pm
Am i classed as self employed or employed

Postby tmc75 » Fri Jul 21, 2017 8:53 pm

Hi
I work for a gent who runs a transport business delivering for a retailer.
He says we are self employed but some beg to differ.
We can only work for him
We have set days when we work
He will stop using us if we dont show up
He tells us where to deliver with a set start time (but job and finish)
We need to request holidays but dont get paid for them
If we wont do something he will call us and tell us to do it
We get a set rate for each day

thanks in advance

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Am i classed as self employed or employed

Postby AmanSood » Sat Jul 22, 2017 12:13 am

Hi

I think the question is important for 2 different reasons and it's important to understand why you are asking the question is it for 1) Legal or 2) Tax?

As a self employed person you have no employment rights as you are not an employee. Hence why being an employee offers you more protection legally.

From a tax perspective, per your comments it does sound like you are employees and if HMRC were to agree, then it would be your employer's responsibility to ensure they withhold the tax (PAYE) and social security (NIC) via the payroll. The gent may be reluctant to treat you as an employee as it would cost them more from a social security perspective which they are trying to avoid.

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Am i classed as self employed or employed

Postby GlobalTaxAdviser » Sat Jul 22, 2017 12:17 am

Probably employed though if HMRC find out the responsibility of the taxes and national insurance fall on him

However you may be losing employment rights and consider taking this further. Though it may mean going to tribunal.

Kind Regards

GTA

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Am i classed as self employed or employed

Postby RMC » Sat Jul 22, 2017 1:19 pm

1. Do nothing if you are happy doing the work. If things go wrong, try to take the matter (e.g. unfair dismissal) to the Employment Tribunal.
2. Tell HMRC that you are self-employed and register for Class 2 NIC. When submitting tax return tell HMRC in the White Space what’s going on and that you should be treated as an employee.
3. Alternatively, try to complete employment page of your tax return instead of self-employment pages, show nil tax deducted, claim Mileage Allowance if using your own vehicle(s) and, again, explain what’s going on in the White Space.


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