Working in a shop but self employed!
Discussion
As title, while in the pub last night talking with friends I asked one female if she was still working in 'the shop', she replied yes and said it's going really well,very busy and almost a year since she started,she then went on to ask who I used for my accountancy work as she wanted someone to do her tax return.I was surprised by this request and asked why as surely being employed in the shop you have no need for one.She then tells me..."oh,I work in the shop full time but the owner said I had to go self employed!"
Is this legal?
To me it is the shop owner being sneaky to avoid employers NI etc.
Is this legal?
To me it is the shop owner being sneaky to avoid employers NI etc.
Look up "IR35"
Quite simply, if someone else tells you when and where to work and it's your only occupation, you're almost certainly NOT self-employed.
Typical employer trick to get out of employer NI contributions, pension contributions, sick pay and all sorts of employer obligations.
Quite simply, if someone else tells you when and where to work and it's your only occupation, you're almost certainly NOT self-employed.
Typical employer trick to get out of employer NI contributions, pension contributions, sick pay and all sorts of employer obligations.
It isn't legal. All relevant information and assessment tools are here:
https://www.gov.uk/topic/business-tax/ir35
https://www.gov.uk/topic/business-tax/ir35
Saleen836 said:
As title, while in the pub last night talking with friends I asked one female if she was still working in 'the shop', she replied yes and said it's going really well,very busy and almost a year since she started,she then went on to ask who I used for my accountancy work as she wanted someone to do her tax return.I was surprised by this request and asked why as surely being employed in the shop you have no need for one.She then tells me..."oh,I work in the shop full time but the owner said I had to go self employed!"
Is this legal?
To me it is the shop owner being sneaky to avoid employers NI etc.
Is this legal?
To me it is the shop owner being sneaky to avoid employers NI etc.
To be fair to the Employer a lot of Employees are quite happy to be (effectively) paid cash in hand.
It can be a tricky area, but:
If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is
self-employed:
• Can they hire someone to do the work or engage helpers at their own expense?
• Do they risk their own money?
• Do they provide the main items of equipment they need to do their job, not just the small
tools that many employees provide for themselves?
• Do they agree to do a job for a fixed price regardless of how long the job may take?
• Can they decide what work to do, how and when to do the work and where to provide
the services?
• Do they regularly work for a number of different people?
• Do they have to correct unsatisfactory work in their own time and at their own expense?
If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is
self-employed:
• Can they hire someone to do the work or engage helpers at their own expense?
• Do they risk their own money?
• Do they provide the main items of equipment they need to do their job, not just the small
tools that many employees provide for themselves?
• Do they agree to do a job for a fixed price regardless of how long the job may take?
• Can they decide what work to do, how and when to do the work and where to provide
the services?
• Do they regularly work for a number of different people?
• Do they have to correct unsatisfactory work in their own time and at their own expense?
Saleen836 said:
She also missed out on the Furlough scheme so spent 3 months with zero income, hopefully the employer didn't make a claim!
Highly unlikely. He would have had to put her on the payroll to do that (and if he had done so he wouldn't need to tell her that she was "self employed"I've seen it a hundred times. He's paying her cash in hand to avoid Ers NI, minimum wage, pension scheme auto enrolment, and probably keeping his costs down so he can stay below the VAT threshold. I'm just not sure why he didn't tel her to keep shtum rather than giving her the impression she was self employed.
ash73 said:
Neither am I!
Just putting it out there to test.
The only expression that I'm vaguely familiar with is that employment status is not a matter of choice. That is you either fulfil certain criteria to be self employed or you don't.Just putting it out there to test.
That's what those questions are (vaguely) about.
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