Self employed issue

[Moonshild]

I have worked for the same person/company for over 25 years. When I started I was asked if I would be self employed - I wasn't very keen but at the time I was very keen to do the job. It was during the recession in the 1990's.

Over the years I have done a mixture of full and part time - due to having children. I am now divorced and although my kids are older - I have one woking and one at Uni - I am the parent who does everything for them financially.
As my job is quite physical - it is getting harder as I get older and I am now in my 50's.
I love my job BUT I don't get paid very well - he sets the amount that I get paid per hour, what I do and where/when I work.
Before lockdown my hourly rate wasn't too bad but I did bar work to boost my income. My pay was frozen during lockdown and eventually went up 1% last February.
I am really struggling but every time I broach the subject of a pay increase - he fobs me off. I have tried asking if he will employ me properly - so I get sick pay, holiday pay and have my tax etc done at source BUT he doesn't want to. He says I will be worse off.

I am trying not to be unreasonable about needing a pay increase but I'm really struggling. I need to be able to present him with what is a reasonable amount to pay me.

What do other people charge as an hourly rate for self employed?

Just for context - I get paid £10 per hour and work 35-40 hours per week depending on what work we have.

That has to cover my tax, national insurance, pension, any time off (sick or holiday), my rent, bills food etc.

I have tried looking for other work in my field but there is very little and I think my age now probably counts against me.

I desperately need advise 🙏🏻

@Butchyrestingface I agree and having another job lined up would give her leverage in the current one. Still no guarantee. It depends how expendable her current employer thinks she is. As she’s sucked it up for 25 years he probably thinks he doesn’t have to try to hard.

She doesn't set her own hours or rates, use her own equipment and I bet she couldn't send a sub. That's three 'fails' from her posts alone. I agree in some IR35 relationships it's almost impossible to tell the difference but this is not that.

Call ACAS and at least find out where you stand.

@raspberrymeringue I do think you're right. Reporting him won't lead him to raise her rate and could lead to a lot of unpleasantness. I think she should report him, but from the safety of a new job!

OP honestly you'd be better off in a supermarket than working for this guy but that said, signwriting is really skilled. Could you go elsewhere? Transition into the office (elsewhere!). Teach at your local college? Get a driving job or a job in facilities management?

When someone's been ripping the piss out of you for 20-odd the years the best answer isn't to get your rate up a bit, it's to go elsewhere.

The OP doesn't mention whether she uses her own equipment or not. The rates charged are invoiced as 'agreed' with her main 'client' and aren't necessarily a pointer against self-employment and while your 'bet' may well be correct we don't know that she hasn't the right to send a substitute.

Any mention of IR35 is a complete irrelevance unless the OP is working through a limited company.

That's less than minimum wage!!

i would get some legal advice, and if it is possible, get a big chunk of money if he owes it! also if you are truly self employed you have every right to ask for an increase in pay which he can either accept or not. If you get a load of cash, leave and use it as a cash backup, then get some proper self employed work where the pay is better!!! Freelancers charge a lot more and for good reason, even for fairly basic jobs.

Also OP being self-employed means you can claim for all your Travel to work at hmrc rates, or if the mileage rates don't cover costs you can claim Real rates but, for that, you need to Split costs on the basisbof personal/ private:use. You can go back 6 tax years, too.

Thank you again - this is all very helpful. I have tried to apply for super market jobs in the past to ‘get out’ but I never get a response! You have to fill in forms online and it is not as straightforward as people think.

I am lucky that I do a job I enjoy but I would like to get paid properly so I can get through each month without panicking that I have enough money - which has got harder as the cost of living goes up.
I am going to contact ACAS for advice.

@FairyBatman ok so I think you're just talking about the holidays affecting it being paid or unpaid?

But my figures are still very different to yours. If only thinking about the benefit of paid annual leave and BH, the hourly rate would need to be £10.95 compared to the £9.75. £10.95 and then taking the 28 days unpaid per year works out the same as £9.75 and 28 days paid.

OP if you look on this page on the government web site there's a link to an online check to see if your employment status is right

He doesn't owe her anything though - he'll owe the Inland Revenue a ton of PAYE and NI, but her rate is her rate - can't imagine there'll be any way she can force him to back pay an increased hourly rate. That's why I think she should move on, there's actually nothing to be gained here.

That's self-employment for you!