Business

Self-employed

What are the rules if you want to work self employed for a Company. I'm talking in respect of hourse etc , beore your classed as 'employed'.

Thanks

pinkbabytots Mon 21/04/08 14:03

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Tom Braider
Mon 21/04/08
15:57

Blimey that's a big question! It's nothing to do with hours and there aren't any rules. To be self-employed is to be in business on your own account. If the people paying you think they can convince the revenue that you are an independent businessperson, then they might agree to pay you outside of PAYE. But if they won't, you can't make 'em. Above all, remember that there's no way of getting a sort of certificate of self-employment. See www.hmrc.gov.uk/employment-status

buildersmate
Mon 21/04/08
17:47

There are several tests that HMRC apply. I couldn't remember all of them so found this on the web which seems to cover it.
http://www.le.ac.uk/ua/fi/docs/Employment%20st atus%20guide%20and%20form.pdf
As Tom says it is nothing to do with hours.

I would take issue with just one of the items on the list of the weblink I gave you - a self-employed person CAN be paid by the hour or day for services - otherwise it is pretty good list.
Be aware that the risk of being regarded as employed (rather than self-employed) is on the organisation that provides you with the contract for services not on you, the self-employed person. In other words, if the HMRC later decides you should have been the employed, they will seek to claw back employers' NI contribution from the organisation.
Google 'IR35' if you want more information.

Tom Braider
Tue 22/04/08
10:51

That's a good document that Buidlersmate has found; and it gives a clear picture of how seriously employers need to take this question. I disagree about googling "IR35" though; IR35 usually only affects people who are paid through a limited company. Try IR56 instead.
http://www.hmrc.gov.uk/pdfs/ir56.htm

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