Employed or self employed?
Discussion
I am hopefully about to start working with a new company on a part time basis. 30 hours a week, give or take. I will work this along side ( for now ) other work which I do for a couple of other companies and some private clients. I anticipate this to fade away leaving more work with the new company.
At interview they asked if I wanted to be employed by them, or self employed as a contractor.
I really don't know... What would the advice here be please?
At interview they asked if I wanted to be employed by them, or self employed as a contractor.
I really don't know... What would the advice here be please?
JABB said:
At interview they asked if I wanted to be employed by them, or self employed as a contractor.
Simple.Do you want "rights" such as holidays, sick pay, pension and redundancy pay - while having the opportunity to set off genuine business expenses against your income,
or
Do you want the "security" of employment?
That's the bones of it.
Panamax said:
JABB said:
At interview they asked if I wanted to be employed by them, or self employed as a contractor.
Simple.Do you want "rights" such as holidays, sick pay, pension and redundancy pay - while having the opportunity to set off genuine business expenses against your income,
or
Do you want the "security" of employment?
That's the bones of it.
What happens when your existing work and clients 'fade away' and then your employer decides to make you redundant? I like options, freedom and irons in fires.
You can’t just say “I’m employed” or “l’m self employed”
The facts determine it and no potential employer can just decide either. In all probability it would never even be picked up but there is a chance.
It often suits an employer to frame something as self employment, the only thing you need to consider is your position re liability for tax/NI etc.
The facts determine it and no potential employer can just decide either. In all probability it would never even be picked up but there is a chance.
It often suits an employer to frame something as self employment, the only thing you need to consider is your position re liability for tax/NI etc.
JABB said:
I am hopefully about to start working with a new company on a part time basis. 30 hours a week, give or take. I will work this along side ( for now ) other work which I do for a couple of other companies and some private clients. I anticipate this to fade away leaving more work with the new company.
At interview they asked if I wanted to be employed by them, or self employed as a contractor.
I really don't know... What would the advice here be please?
This feels like a question about IR35 regulations. If you have only one client it is likely you are really just an employee of that client.At interview they asked if I wanted to be employed by them, or self employed as a contractor.
I really don't know... What would the advice here be please?
If you have more than one client then there is a reasonable case for saying you aren't employed by either of them, rather you work for your own company.
JABB said:
I am hopefully about to start working with a new company on a part time basis. 30 hours a week, give or take. I will work this along side ( for now ) other work which I do for a couple of other companies and some private clients. I anticipate this to fade away leaving more work with the new company.
At interview they asked if I wanted to be employed by them, or self employed as a contractor.
I really don't know... What would the advice here be please?
HMRC states categorically that whether you are employed or self employed is not a matter of choice but a matter of fact.At interview they asked if I wanted to be employed by them, or self employed as a contractor.
I really don't know... What would the advice here be please?
CraigyMc said:
This feels like a question about IR35 regulations. If you have only one client it is likely you are really just an employee of that client.
If you have more than one client then there is a reasonable case for saying you aren't employed by either of them, rather you work for your own company.
No, it’s not about IR35. IR35 applies when an individual operates through an “intermediary “ entity, such as a limited company.If you have more than one client then there is a reasonable case for saying you aren't employed by either of them, rather you work for your own company.
This is about an employer offering a newly hired individual the choice as to whether they want to be engaged as an employee or as a self employed individual.
Tax law says they are not allowed offer that choice.
Countdown said:
JABB said:
Pay would be the same.
Go self employed. The tax advantages are significantJABB said:
Pay would be the same.
But between employed and self-employed the pay can't be the same.How much and who pays any of PAYE, corporation tax, self-assessment, VAT, NI, Employer NI, employer pension contribution, holiday pay, public liability insurance, professional indemnity insurance, limited company costs, accountancy costs, liability and risk and the actual pay.
Considering that lot means it is impossible to know if the pay is the same.
Employers have to do so much for their employees why would you wnat to be self-employed?
Eric Mc said:
CraigyMc said:
This feels like a question about IR35 regulations. If you have only one client it is likely you are really just an employee of that client.
If you have more than one client then there is a reasonable case for saying you aren't employed by either of them, rather you work for your own company.
No, it’s not about IR35. IR35 applies when an individual operates through an “intermediary “ entity, such as a limited company.If you have more than one client then there is a reasonable case for saying you aren't employed by either of them, rather you work for your own company.
This is about an employer offering a newly hired individual the choice as to whether they want to be engaged as an employee or as a self employed individual.
Tax law says they are not allowed offer that choice.
I very much doubt "tax law" says that. Show your proof please.
Do all the wondrous advantages of being an employee - free medical care, paid holidays, free pension, use of the director's wife on Saturdays etc - start on Day 1 or is there a period before the expiry of which the hapless employee can be booted out with nothing?
As alluded to above, I don't see how the rate of pay can simply be 'the same' - how did they phrase it?
As alluded to above, I don't see how the rate of pay can simply be 'the same' - how did they phrase it?
Simpo Two said:
Do all the wondrous advantages of being an employee - free medical care, paid holidays, free pension, use of the director's wife on Saturdays etc - start on Day 1 or is there a period before the expiry of which the hapless employee can be booted out with nothing?
As alluded to above, I don't see how the rate of pay can simply be 'the same' - how did they phrase it?
All of the ones we have start from Day 1 (apart from sick leave which starts after 1 month)As alluded to above, I don't see how the rate of pay can simply be 'the same' - how did they phrase it?
IME if you are self employed then your hourly rate would be higher to compensate for all the "Employee benefits".
JABB said:
Pay would be the same.
No way Pedro 
Hourly rate (since we're talking about a contractor) should be a lot higher for a contractor than an employee ..
Have a play with this:
https://accountingservicesforbusiness.co.uk/true-c...
Even without considering Office Costs and Other Costs, you'll see it actually costs the company over 1.6x the basic salary to employ someone ... for a contractor, they pay just the actual hours worked.
As self employed you might find getting a loan or mortgage more difficult. There are lots of subtle issues with being self employed which are all surmountable if you have the interest. I know some friends who have made it work. I've done both but at my age I tend towards staff just because I can't be arsed.
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