DS got a job but told he will be self emoyed - is this legit?

[WitzEnders]

DS (18) has been offered a job by a local builder. Great, he's not academic but is good with his hands and a real grafter.

The boss has told him he will be "self employed" and needs to sort out his own tax and NIC.

I've never been in this position so did a quick Google and I don't think DS meets HMRC criteria for s/e. Is this just a way for his boss to avoid paying employers NI, holidays and pension?

Any advice would be much appreciated.

Usually very dodgy…

I'm no expert in this but I'd say no. Best way to find out for sure would be to call the HMRC. But in my industry, only heads of dept or those supplying Dow I fix equipment can be classed as se.

"Their own equipment" stupid phone....

Call ACAS?

Quite normal in the building industry.

I think it's common in the construction industry. .bil is a plasterer and in this position.

@DustyMaiden

Quite normal in the building industry.

Yep quite normal.

He needs a CIS number (construction Industry Service) and yes this is standard in the construction industry they will deduct his tax but he'll need to invoice each month. He can claim for work clothes, tools and training costs so it's a win for him. He can register everything on line.

Whilst common it's still shit

Yep standard in construction industry

Anyone who thinks this is dodgy shouldn't really be commenting as they know not of what they speak

Agree with others, very normal in building/labouring jobs.
I used to sort my ex partner's tax out years ago, it wasn't difficult....though it might have changed in the last 20 odd years.

At the moment the construction industry is a great industry to be in with regards to the future. It sounds daunting but if he's self employed then he can essentially tell them how much he wants paid per hour - maybe not on this job, but in the future. No limit to overtime. He just needs to be careful to set aside money for holidays and paying tax.

Thanks for replies ...

But he's not supplying his own tools and he can't send someone else to do the job in his place So how does he meet criteria for self employed?

@Whinginadeville

He needs a CIS number (construction Industry Service) and yes this is standard in the construction industry they will deduct his tax but he'll need to invoice each month. He can claim for work clothes, tools and training costs so it's a win for him. He can register everything on line.

Sorry if I'm being dim but why would his boss deduct his tax (great if they will!) if he's not PAYE and what about NIC?

And it's definitely not a bit shit! Tax is deducted at source so no need to save it or no chance of accidentally spending it and often a refund is due its easy to fill in an online tax return, HMRC are really helpful as to what can and can't be claimed. There isn't a great deal of job security but tbh unless he's feckless, thieving, addicted to hus phone or lazy he'll be golden. There is currently a huge demand for labour in the construction industry. Most firms want young people who are doing something at college and its the very best way to get an apprenticeship and he can try all the different trades to find his best fit.

@Whinginadeville

Anyone who thinks this is dodgy shouldn't really be commenting as they know not of what they speak

Probably because most on MN won't associate with building trade type professions themselves in their own working life as a career. Not highly paid enough.

AFAIK, it's common to be SE in these industries. Short contracts.

@WitzEnders

Thanks for replies ...

But he's not supplying his own tools and he can't send someone else to do the job in his place So how does he meet criteria for self employed?

As others have said its common in construction.

www.gov.uk/what-is-the-construction-industry-scheme

It's the way the Construction Industry works it stops cash in hand payments I think and he will need to buy proper work boots and clothes and gradually he will need tools and eventually transport.

Construction Industry Scheme isn't PAYE, they deduct 20% as an advance payment towards his tax and NIC. He then files tax returns at end of year and either pays remaining balance or receives a refund of any overpaid tax.

Same in railway agency work. You are classed as self employed. You buy your own work gear. It's just how it is 🤷

Sorry if I'm being dim but why would his boss deduct his tax (great if they will!) if he's not PAYE and what about NIC?

If I recall CIS correctly, the boss would deduct an amount roughly equivalent to Income Tax and send that to HMRC to be held on the DS behalf (i.e. he would be paid "CIS Net"). When DS makes his annual tax return, that previously submitted money can be offset against his tax bill so that he doesn't suddenly have to find a large sum of money.

National Insurance would be for DS to sort and pay directly.

There's tonnes of information online about how CIS works.

CIS is a sort of “contractor” relationship rather than other types of self employment. It’s standard in construction but specific to that industry. Look it up specifically.

www.gov.uk/what-is-the-construction-industry-scheme

My dB is self employed but works for a company they pay the tax etc.
But he doesn't get holidays etc paid.