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Where Taxpayers and Advisers Meet

Employment status

Geoff01
Posts: 3
Joined: Thu Mar 30, 2017 10:32 pm

Employment status

Postby Geoff01 » Thu Mar 30, 2017 10:44 pm

Hello, i am starting casual labouring work soon for a machine engineer acquaintance. He has requested that i invoice him for hours worked which is what he has requested for any previous workers. I don't have a contract and either of us can decide when and if i work. Purely on an as needed basis. I don't get any holiday pay or sick pay it's purely casual. I just assist him on different jobs that we attend when he needs it. I just need to know whether i just complete a self assessment at the end of each tax year for money's earned or register as self employed and do similar. I guess a self assessment calculates national insurance payments as well. Should i do this monthly or annually. I may only earn 10-12k if I'm lucky. He has an accountant do his books so i guess this is fairly straight forward. Just some advice if possible.Many Thanks

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

Re: Employment status

Postby GlobalTaxAdviser » Sat Apr 01, 2017 2:45 pm

Hi

It seems you are an employee than self employed hence entitled to all the employee benefits like holidays, SSP etc.

There are some criteria which defines employee v self employed though the onus will be on the employer to make sure they determine the status.

Kind Regards

GTA

Geoff01
Posts: 3
Joined: Thu Mar 30, 2017 10:32 pm

Re: Employment status

Postby Geoff01 » Mon Apr 03, 2017 7:53 am

Thanks for that, if I am happy with our arrangement and would register for self assessment(in effect I am contract labour). I wont have any deductions so probably won't register for self employment, just want to keep it simple. As long as i pay my tax and national insurance could there be any onus back on him. He has operated this way for 20 years with a previous employee who has since retired. I guess his accountant would be aware of this as its all done through his business account on receipt of my invoice via direct debit..no cash

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

Re: Employment status

Postby GlobalTaxAdviser » Mon Apr 03, 2017 9:36 am

Hi Geoff

Accountants do get quite busy so may not delve into status of their clients subcontractors. Looks like to me you are employed - one basis question do you take instructions from your employer and do they control and supervise you.

If you were considered to be self employed - I can imagine most employers changing their employee status to self employed to make significant savings and not have the burden of employment rights to deal with

Anyway, its not really your problem from a tax point of view but you will be missing on employment benefits like pension, paid holidays etc

Kind Regards

GTA

Geoff01
Posts: 3
Joined: Thu Mar 30, 2017 10:32 pm

Re: Employment status

Postby Geoff01 » Wed Apr 05, 2017 8:41 am

Thanks Gta, I will register for self assessment so do my own tax and national insurance so that part is my problem. I can choose when I do and don't work so this best suits me. As an employee under contract I won't have that option. I wont register as self employed as I'm not really. I take it the self assessment calculates my tax and nic automatically. I did go on chat to hmrc and they said to just fill out a self assessment.


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