DH has been offered a new job on a SE basis

[Alliwantisaroomsomewhere]

Dh has been offered a role by a man he has known for years and whom he trusts. The offer is that DH would be self employed but paid a basic plus commission.

What are the pitfalls of being SE on this basis? I appreciate that DH would have to sort out his own tax returns and NI contributions.

What other pitfalls are there to look out for?

Thanks!

[RikeBider]

Is it really a SE position? If he's being paid a salary it sounds like he could be employed - does he bring his own tools, can he set his own rates and availability, could he send someone in his place?

[Alliwantisaroomsomewhere]

No: he would use a company van, be given a co phone and uses their equipment and would not be able to send someone in his place.

I agree - it is in effect an employed basis. Why would the offer be made on a SE basis? what is the benefit to the employer and what are the pitfalls for DH?

[flowery]

I agree with RikeBider. However much your DH trusts this man, be absolutely certain it is genuinely a self-employed role. Employment status isn't something that is decided by either the employer or the employee, it's based on the nature of the relationship between the two.

Lots of people try and avoid their employer obligations by calling people 'self-employed' when they are not really.

With genuine self-employment your DH would be looking at no holiday, no job security, no pension, etc etc

[flowery]

x-posts.

Sounds like employment to me. I would walk away. The man would be trying to take advantage of your DH and get the benefits of an employee without the obligations involved with doing so.

[Alliwantisaroomsomewhere]

That is waht worried me, flowery - no security at all. i think the man is trying to avoid the cost of the pensions scheme in particular.

Worried that DH is so keen to leave where he is that he will take whatever is offered

[flowery]

Well, the good news is that regardless of what any contract/agreement says, if your DH is employed he will still be able to take this man to a tribunal and enforce his rights, to holidays, pension, unfair dismissal protection etc. What's on a bit of paper is not nearly as relevant as what's actually happening.

But I would strongly caution against working for someone who is prepared to treat an employee so badly as to deny them their employment rights. It doesn't bode well for the future.

[Alliwantisaroomsomewhere]

Thanks so much for your advice, Flowery. I appreciate it!

I will talk to DH tonight about this.

[allmycats]

The terms you describe do not meet HMRC rules on being a 'self-employed' person. It appears to be just a way out of the 'employer' meeting their obligations.