Employed or self employed?

[bigbear]

Hi all
I have been working for a transport company for 3 years. I drive their vehicle and wear their uniform, use the company fuel card and i am told what time to start work and finish, told when to have my breaks and given work in between the planned jobs.

From day one i was told to invoice them at the end of the month. I was also told i could only invoice them a certain amount per day.

I have had a few meetings about this and they say their accountants know the law and that i am self employed?

I am a little worried now as i am not sure if im breaking the law.

I have been on the yougov site and it just gives a rough description.

I am paid £70 a day which i think is low for self empolyment.

Please any advice would be great

Thankyou

[dori2o]

Re: Employed or self employed?

Hi all
I have been working for a transport company for 3 years. I drive their vehicle and wear their uniform, use the company fuel card and i am told what time to start work and finish, told when to have my breaks and given work in between the planned jobs.

From day one i was told to invoice them at the end of the month. I was also told i could only invoice them a certain amount per day.

I have had a few meetings about this and they say their accountants know the law and that i am self employed?

I am a little worried now as i am not sure if im breaking the law.

I have been on the yougov site and it just gives a rough description.

I am paid £70 a day which i think is low for self empolyment.

Please any advice would be great

Thankyou

Hi,

Ultimately it is for HMRC to decide whether or not you are self employed, but you are unlikely to 'get in trouble' as your employer is responsible for ensuring your employment status is correct. It is they at the end of the day who is saving the costs of Class 1 National Insurance.

It is however to your detriment to be classed as self employed if you are actually employed as you will not be building national insurance credits for benefit claims purposes should you need to claim, neither will you be accruing full state pension credits.

Check out the HMRC website here http://www.hmrc.gov.uk/employment-status/index.htm#1

This section is quite useful

Employed or self-employed?

In order to answer this question it is necessary to determine whether the person works under a contract of service (employees) or under a contract for services (self-employed, independent contractor). For tax and NICs purposes, there is no statutory definition of a contract of service or of a contract for services. What the parties call their relationship, or what they consider it to be, is not conclusive. It is the reality of the relationship that matters.
In order to determine the nature of a contract, it is necessary to apply common law principles. The courts have, over the years, laid down some factors and tests that are relevant, which is included in the overview below.


As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

• Do they have to do the work themselves?
• Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
• Can they work a set amount of hours?
• Can someone move them from task to task?
• Are they paid by the hour, week, or month?
• Can they get overtime pay or bonus payment?

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?

You can also use HMRC's Employment Status Tool to get a HMRC 'view' of your Status. However this opinion is not binding on HMRC, but you may be able to show your employer that they may be incorrect in their judgement if the tool suggests that you are an employee and you may be able to use it as a bargaining tool.

This is the tool
http://www.hmrc.gov.uk/calcs/esi.htm