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Cash in hand............employer says worker can be self employed

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tcc65 | 21:26 Mon 03rd Nov 2008 | Jobs & Education
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My 18 year old daughter has just been offered a job in a local shop �40 per day cash in hand. It's for two days a week but may be more as the build up to Christmas starts. He has told her that if the tax man turns up he says that all his staff ( he owns 5 shops) are self employed.
Obviously alarm bells are ringing for me, and having checked on the inland revenue website I am not even sure that she could be registered as self employed she does not fit the citeria they mention. I know this is a cop out from the owner of the shop but my daughter would be willing to pay NI and tax but how?
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If "the taxman" does turn up and the workers do say they're self-employed the taxman will say "Yeah, right" - they're not, even if they're registered. It won't be your daughter's problem, though - it's not her fault he's trying to pull a fast one. She should try to register as self-employed because that will tell the revenue what's going on. If the �80 a week is her only income she won't be liable for tax and NIC anyway. Mind you, I wouldn't take a job with somebody who isn't playing by the rules.
HMRC will not allow her to register for self-employed. I've done that and it wasn't easy and my request was genuine. Does she really eant to work for someone with no honesty or integrity?
So if she is 'self employed' what happens if she is sick or has a holiday?

Although what he is doing is wrong what if your daughter were able to register as self employed? would �40 a day be enough to pay ni and tax as well as reserves for holiday and sick pay and pension etc etc?

I would be tempted to let the tax office know he has 5 shops running and no satff. I am sure they would be very interested......
it is important to insist on your rights as a worker to a proper contract and work environment and to report employers not offering this. It is nonsense to say a shop assistant is self-employed. I would be concerned at this guys take on health and safety - is he providing a safe working environment? Plus, with nothing in writing, he will probably simply decide he doesn't need her, or query the hours she has worked, and she's got no comebacks.
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I agree with all the responses to my question, to clarify she is only working two days per week, although as I mentioned this may increase. She is not worried about holiday pay at the moment to put it into perspective she's 18 and wants to earn some money, yes I know we are more sensible than that but imagine would we have worried at 18! She is not intending to stay there for long just until she finds something better.
I am tempted to report him and not tell my daughter may be easier in the long run, my concern is what happens if someone does report him ie me will she end up in loads of trouble frankly I am not concerned about him just my daughter.
Don't forget employee liability insurance as well - if she has an accident in the workplace, it will be very difficult for all concerned.

Surely she can find somewhere better at this time of year?

How many hours is he expecting her to work each day? The current minimum wage for 18 year olds is �4.77
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She is working 7 hours a day for �40.00 so more than the mimimum wage and yes she is looking for jobs all the time. As any normal 18 year old she is keen on eaning some money and there is no way I can afford to give her �40 per week let alone per day.

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