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15 hours pw at min wage - better off employed or self employed?

(5 Posts)
SoftKittyWarmKitty Sun 17-Apr-16 21:31:31

I'm self employed but as I haven't been bringing that much in over the past few months, I applied for some part time roles so that I've got a set amount coming in each week and still have time to build my business. I've just been offered a role that's 15 hours per week at min wage. It's initially temporary for three months with the possibility of being extended or made permanent after that and it's a very small company - less than 5 people.

They know I'm SE and are leaving it up to me whether I work there as self employed and invoice them for my hours, or I'm employed by them. A friend of mine pointed out that if I'm employed by them rather than self employed I might get sick pay and holiday pay but I'm not sure of the situation around sick and holiday pay with regards to very small companies of that size, especially given that the role is temporary in the first instance. I'd really appreciate any advice about which way forward would be best.

TomTomKitten Sun 17-Apr-16 22:07:31

If you are working 15 hours per week on the same days in the same location and it's only you doing the job then they need to employ you. HMRC are very strict on this and they can get into trouble/be fined if they get it wrong. Read this...

If you do work for them on a self employed basis then they need to pay you more than minimum wage as you need to cover your own holidays/sickness/pension.

Personally, I would ask them to employ you. You will have far greater protection.

SoftKittyWarmKitty Sun 17-Apr-16 22:30:57

Thanks TomTom, I've just been googling all this and it seems you're right - I'll be doing roughly the same hours/days each week in their office with all equipment provided by them, so think employment is the best route. I can still do SE work for other clients as and when I can fit it in. smile

TomTomKitten Mon 18-Apr-16 00:20:04

You just need to declare your earnings when you come to do your tax return. Best of luck!

SoftKittyWarmKitty Mon 18-Apr-16 14:57:10

Thank you. I'm already registered as self employed so I'll declare my SE earnings alongside my employed earnings next year.

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