Are you really self employed !

[catsaremad]

Hi Guys

I have been reading a couple of the threads on the nail Geek with regard to being paid commission where the salon owner is providing the equipment.

I have thought a lot about this,this weekend and after having a conversation with my collegues and looking on various hmrc websites I really think that there is an issue as to whether you are truly self employed.

SO I have posted the below. Its definately worth checking your employments status, you could be missing out on 'employment rights' such as minimum wage and holiday pay if you are actually a worker or an employee.

Basic checks to help you decide

You can usually work out your employment status by asking a few straightforward questions.
You are probably self-employed if you:

• run your own business and take responsibility for its success or failure
• have several customers at the same time
• can decide how, when and where you do your work
• are free to hire other people to do the work for you or help you at your own expense
• provide the main items of equipment to do your work

You are probably employed if you:

• have to do the work yourself
• work for one person at a time, who is in charge of what you do and takes on the risks of the business
• can be told how, when and where you do your work
• have to work a set amount of hours
• are paid a regular amount according to the hours you work, and get paid for working overtime - even if you do casual or part-time work, you can still be employed

You can also be employed and self-employed at the same time, perhaps by working for an employer during the day and running your own business in the evenings. Think about each contract separately - you may find that you are self-employed for one but employed for another.
If you're unsure, you should ask to talk to the Status Officer at your Tax Office. There's no legal definition of employment or self-employment, so if there's a doubt about someone's status the decision is made by referring to previous judgments - known as 'case law'.
Whether you are employed of self-employed depends upon the facts of your working arrangements, what your contract says or a combination of both

 

[YSL]

Excellent advice. The definitions and differences between employment and self-employment are complicated areas and, helpfully (!), the Revenue have their own tests too. If in doubt, and you want to be considered self-employed, discuss with HMRC and also an excellent website is businesslink.gov. To make it really clear you could use a contract for services too.

 

[jes]

There's some good points there, but you've missed out the most obvious and important... Who's paying your tax and NI?

Jes

 

[catsaremad]

Just because you pay your own Tax and Ni does not necesarily mean that your self employed !!!!

Your self employment status is actually determined by HMRC using the above rules as guidance........... ,

Therefore if you don't meet the above criteria then they will determine that you are actually an employee and will go after your 'employer' for PAYE.

 

[YSL]

Absolutely. The questions set out in the first post are useful (I hope you dont mind but I have pilfered them for circulating around my firm!)

 

[catsaremad]

No thats cool, I think its important that all therapists and owners have an understanding and what makes a person self employed as opposed to a worker or employee.