OT: On site contract
suzyb
Posts: 3,449
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.
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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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.1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
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.0 -
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..."0 -
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.0 -
lost_in_thought 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.0 -
suzyb wrote:lost_in_thought 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.
That's what I was told. In reality, I doubt many people would do it for such a short term.0 -
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 insurance0 -
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.0