Employment advice, can anyone help?
Discussion
Hi,
I'm hoping someone can help with my current situation, I can't seem to find out anything specific enough on t'internet and want to try and make sure everything I do is above board and legal. Situation is:
I was made redundant earlier this month as the company I worked for is now insolvent. It was only a small company and it's insolvency was caused by a bad debt, not through any wrong doing. I had been working there for 7 years and I enjoyed the job and the people I worked with, so it's a real shame.
Unfortunately, I've not been paid since the end of February either, so things are tight to say the least.
As advised, I've signed on and I'm currently looking for employment. All straight forward so far, so here's the bit I really need advice on...
The old company owner has set up a new company and intends on trying to fulfil some contracts for the previous companies clients and develop ongoing work - basically a phoenix, which makes sense as I think it would be viable without the bad debt.
He's asked me to help on a self employed contract basis for a few months, possibly starting next month, with a view to full time employment as soon as things are established and/or if the business can genuinely afford to pay me. He's offered this to a couple of my colleagues also.
I'd like to do this if i can, as I mentioned before I enjoy the work, I like the team and it pays ok (when business is good!!)
I've looked into it a little as I've never been a contractor or self employed before - the main issues I seem to have found are to do with either TUPE or IR35, which I think could have a bearing on my future employment with the new company and also my statutory redundancy claim - which I need to plug the gap in missing wages I can't afford to lose.
Would either TUPE or IR35 cause me or my employer a problem if I were to go ahead with this (although in a different ltd company)? I've read that there might need to be a period of time between employment, in which case I'll be saying no and looking elsewhere, but I can't find any absolute facts about any of this.
Cheers for any help/guidance, finding out about this seems to be filled with huge grey areas, hopefully someone can make it all a bit more black and white so I can make an informed decision about whether to do this or not.
I'm hoping someone can help with my current situation, I can't seem to find out anything specific enough on t'internet and want to try and make sure everything I do is above board and legal. Situation is:
I was made redundant earlier this month as the company I worked for is now insolvent. It was only a small company and it's insolvency was caused by a bad debt, not through any wrong doing. I had been working there for 7 years and I enjoyed the job and the people I worked with, so it's a real shame.
Unfortunately, I've not been paid since the end of February either, so things are tight to say the least.
As advised, I've signed on and I'm currently looking for employment. All straight forward so far, so here's the bit I really need advice on...
The old company owner has set up a new company and intends on trying to fulfil some contracts for the previous companies clients and develop ongoing work - basically a phoenix, which makes sense as I think it would be viable without the bad debt.
He's asked me to help on a self employed contract basis for a few months, possibly starting next month, with a view to full time employment as soon as things are established and/or if the business can genuinely afford to pay me. He's offered this to a couple of my colleagues also.
I'd like to do this if i can, as I mentioned before I enjoy the work, I like the team and it pays ok (when business is good!!)
I've looked into it a little as I've never been a contractor or self employed before - the main issues I seem to have found are to do with either TUPE or IR35, which I think could have a bearing on my future employment with the new company and also my statutory redundancy claim - which I need to plug the gap in missing wages I can't afford to lose.
Would either TUPE or IR35 cause me or my employer a problem if I were to go ahead with this (although in a different ltd company)? I've read that there might need to be a period of time between employment, in which case I'll be saying no and looking elsewhere, but I can't find any absolute facts about any of this.
Cheers for any help/guidance, finding out about this seems to be filled with huge grey areas, hopefully someone can make it all a bit more black and white so I can make an informed decision about whether to do this or not.
What do you want from this ?
Options :
1) Go Ltd company, go freelance and offer similar help to similar companies using your varied skills across the region. Very tax efficient, and very easy for the client if you bill him for services rendered. I suggest cash in advance with this client. Ltd company means limited liability, but you still need liability insurance and probabally professional indemnity insurance (Hiscox?)
I work as a contractor outside of IR35 and am effectively an employee on PAYE on my own company.
Just like a plumber !!
2) Register self employed. My nephew is a self employed drama freelance facilitator, and finds it rather uncomplicated. As long as you work for more than one company etc it's all okay. You can claim for all sort of business expences.
3) Ask to go PAYE, and just get paid like you did before.
Options :
1) Go Ltd company, go freelance and offer similar help to similar companies using your varied skills across the region. Very tax efficient, and very easy for the client if you bill him for services rendered. I suggest cash in advance with this client. Ltd company means limited liability, but you still need liability insurance and probabally professional indemnity insurance (Hiscox?)
I work as a contractor outside of IR35 and am effectively an employee on PAYE on my own company.
Just like a plumber !!
2) Register self employed. My nephew is a self employed drama freelance facilitator, and finds it rather uncomplicated. As long as you work for more than one company etc it's all okay. You can claim for all sort of business expences.
3) Ask to go PAYE, and just get paid like you did before.
It sounds to me like you may have a claim with the National Insurance Fund for your unpaid wages and redundancy http://www.insolvency.gov.uk/pdfs/RP1%20Form%20rev...
I don't understand what you mean by bad debt. I am not a lawyer or accountant.
If the company was owed money which did not materialise, then I wonder if the company owner would have been better off writing the debt off, offseting the loss against taxes and continuing on with the old company. I can only imagine that starting up again is done to avoid paying debts that the old company owed to others, and in doing this the business owner is crapping on his old suppliers and staff.
In the latter case the old business was a failure and I would not want to get involved with the new business if run by the same people..
I have limited experience and look forward to reading others' advice to you.
I don't understand what you mean by bad debt. I am not a lawyer or accountant.
If the company was owed money which did not materialise, then I wonder if the company owner would have been better off writing the debt off, offseting the loss against taxes and continuing on with the old company. I can only imagine that starting up again is done to avoid paying debts that the old company owed to others, and in doing this the business owner is crapping on his old suppliers and staff.
In the latter case the old business was a failure and I would not want to get involved with the new business if run by the same people..
I have limited experience and look forward to reading others' advice to you.
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