Ok Keith thanks. Can you elaborate on why NI may be a problem? Generally self-employed Ni is very low isn't it, & when self-employed & employed at the same time, I mostly have had to pay 2 lots of NI too! So wouldn't the NI be cheaper too? I do have a community healthcare system that I can pay into, so my health needs would still be covered, if necessary.
Probably, and if you get hammered with two sets of NI from different employers you cannot reclaim the excess!
As self employed you pay both Class 2 and Class 4 NI. Class 2 is GBP 2-70 per week if you earn more than GBP 5725. Class 4 is 9% on earnings between GBP 7755 and 41450 and 2% thereafter.
I wouldn't bother; HMRC merely emphasises the summary view that an employee can be told what to do and how to do it whilst a contractor can be told what to do, but not how to do it. If her firms agree there is no problem as to her being a contractor.
I am sorry you are getting conflicting advise - I worked for HMRC for 26 years providing education on employment status and whilst there are occasions when there is scope to contract (become self employed) these are far and few in between, so whist I respect the fact that Bigduck is trying to allay concerns you cannot ignore HMRC legislation on the topic
Employed or self-employed?
A worker's employment status, that is whether they are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement. The tax and National Insurance contributions (NICs) rules do, however, contain some special rules that apply to certain categories of worker in certain circumstances. See section on special cases.
If you work for someone else, it is important to know whether you are working for that person in an employed capacity or in a self-employed capacity as an independent contractor. If you are an engager, it is your responsibility to correctly determine the employment status of your workers. A worker's employment status will determine the charge to tax on income from that employment or self-employment. It will also determine the class of NICs, which are to be paid.
So if you would be happy to advisee what your jobs are - what duties you perform and what business equipment of your own you have and use, and whether you could make a profit as well as a loss, whether you will advertise to other businesses to provide these services, as a start point that would be great
Then we can be sure you are being advised the right pathway for you, within the remit of what the businesses that are engaging you are permittd to allow. Thanks
First of all, its my husband we are discussing. He is leaving one employer, but they want to have him a couple days a week perhaps, he works for them often also based at home, depending on my situation (he also does work for me as a carer) he has his own office, part workshop, & many tools at home, as well as some of his own tools he uses at different workplaces; he has two work vans also of his own, & a car on his own work fleet insurance. He does sales & projects for them, involving many aspects; also involving creation of drawings for layouts (tables & chars supply to restaurants & hotels). The work he does for me is as a personal assistant. He also is going to give services to another bespoke furniture company who require him to synchronize their services to this industry, probably a couple of days a week, or so. He would also use the same vehicles & tools, & also other tools of his & yes, the idea would be to make a profit, exactly.. He could also advertise to other businesses for similar contracts in a similar line, & if self-employed totally, would enjoy doing so. His works cannot have control over him because of the carer work he does for me. His hours are very scattered & non-routine when at other places of work, although ongoing or fairly long term, eg several months or a couple years at a time. I would like to know what you think. It would definitely help if he was self-employed, as he would have more control than he has presently over his work-hours & how the work is performed. It would also be more profitable, we feel.
Hello Sam - I get DPs. My husband is one of my main carers, but not my only carer; i have many. I have complex care needs & need full-time care.. My carers are all self-employed with very unroutine hours, & I also use agency & professional workers. He pays tax & NI on invoices he raises thru a current (previous) self-employment - self-assessment. However the available money for him is very low, & our outgoings very high as we also had a large family of 7 children all living at home, with various needs, all of those old enough out at work since further education - & so although he does many varying hours for me as a constant care, he also needs to work a) income, & b) sense of identity. We had thought that we should set up some form of Trust fund instead for our special case, but are very confused by the intricate laws & our needs & just seem to go on paying out loads of tax & NI, & not getting any benefit such as Tax Credits because my husbands total income appears 'too high'. However it is unfair, as he is forced to do terribly long hours 7 days a week, never gets a real chance for a break or a holiday, & I am afraid of the eventual toll on his health. Meanwhile though we do not know which way to turn as taxes do have to be paid if they appear to be due. Also, if one of his furniture companies dropped off & he had only one (plus me & perhaps a few smaller jobs here & there) would not this then be seen by HMRC as an employment? We can't risk getting into trouble, as we would not be able to pay any large fines &/or in any case don't wish to do the 'wrong' thing.