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OT: On site contract

suzybsuzyb Posts: 3,449
edited August 2010 in Commuting chat
A month ago my ex-boss contacted me with some freelance work. I just finished an initial project and will now be meeting with him on Monday to discuss working on site for a month (initially) to work on a number of other small projects.

And now I'm a little confused.

Working at home whenever you like, sending out invoices and receiving payment is obviously self-employment. But am I still self-employed when I am working on site since I will probably still be paid in the same way but not in control of what/when and where I work.

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  • rjsterryrjsterry Posts: 18,256
    Check out the Directgov website for full details, but I'm assuming this is just a short term contract, and you can also take on other work (time permitting). If he wants you to work for him on a permanent and exclusive basis at his office, then I think you'd have to be back on PAYE.
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  • ndrundru Posts: 382
    There is a time limit for which you can work freelance for the same employer on his site. After that time they have to employ you. Not everybody follows these rules though.
    It's a convenient way for an employer to save money as they don't have to pay:
    2 class NIC, tax, holiday pay, sick pay and so on, yet still have a full time employee.
  • Not sure whether the HMRC can actually force an employer to put a freelancer onto their PAYE. I suspect not. Contractors often work for years for the same employer. Check your tax return papers. Do you actually have to state where you work as a freelance? My partner gives her home address on the return; IIRC the address where she does that work does not have to be declared. I suspect the HMRC are indifferent.
    Failing that, consult your accountant?
    "Consider the grebe..."
  • I found myself in a similar situation last year, and the IR told me that if I was self-employed but working for only one employer who defined my working hours, then said employer had to put me on PAYE immediately.

    I got round it by invoicing 2 of said employers companies in alternate months. We'll see if it worked around April time.
  • suzybsuzyb Posts: 3,449
    I found myself in a similar situation last year, and the IR told me that if I was self-employed but working for only one employer who defined my working hours, then said employer had to put me on PAYE immediately.

    I got round it by invoicing 2 of said employers companies in alternate months. We'll see if it worked around April time.
    Even if your only going to be working there for a month or two :?
  • suzyb wrote:
    I found myself in a similar situation last year, and the IR told me that if I was self-employed but working for only one employer who defined my working hours, then said employer had to put me on PAYE immediately.

    I got round it by invoicing 2 of said employers companies in alternate months. We'll see if it worked around April time.
    Even if your only going to be working there for a month or two :?

    That's what I was told. In reality, I doubt many people would do it for such a short term.
  • gbsahne001gbsahne001 Posts: 1,961
    look up information relating to IR-35, there will you see the definition of being self employed.

    Amongst which are things like;-

    - did you provide a quotation for the work?
    - are you at financial risk if things don't go according to plan i.e. overuns?
    - are you providing your own insurance / liability?

    etc etc. on the note of insurance, if you're not technically an employee but are working in a freelance capacity on site then you may not be covered by any of the employers insurance
  • suzyb wrote:
    A month ago my ex-boss contacted me with some freelance work. I just finished an initial project and will now be meeting with him on Monday to discuss working on site for a month (initially) to work on a number of other small projects.

    And now I'm a little confused.

    Working at home whenever you like, sending out invoices and receiving payment is obviously self-employment. But am I still self-employed when I am working on site since I will probably still be paid in the same way but not in control of what/when and where I work.

    The complication of IR35!

    It depends what you are doing and for how long. It also depends on the terminology you use.

    For a month, I do not think it counts. If it goes longer than that, it can get difficult. A decent accountant can advise best. It can be influenced by having a permenant desk and using the client IT equipment.

    It also depends on if you are getting paid hourly/daily or if you have a set price for a piece(s) of work. Are you working on other contracts/work at the same time?

    A positive is that you can claim expenses (travel, food, etc). I think you can claim 20p/mile cycling :)

    It always needs to be a referenced as a client site, etc.
    Tier 0 living. You should try it. It's not the deadly, hysterical, fear driven state the government want you to believe it is.

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