Problem with work contract, not sure what to do

[Trifletrifle]

I’ve recently joined a tutoring group run by our local council. It’s on a self employed basis and I get termly contract with offers for work. I go into local schools to tutor children in my specific subject and parents pay the tutoring group who then pay me an hourly rate. Parents choose to either pay for 1-1 sessions or group sessions (with 2 or 3 children). Most parents pay for group sessions as it’s much cheaper for the parent.

At one of my schools, only one student has signed up for group tuition. Sessions need to be 20 minutes as per my contract. I have been delivering 20 minute sessions weekly, however, my contract stipulates it works on a ratio basis of 10 minutes per student. E.g if I see two students I claim 20 minutes, if I see 3 students it’s 30 minutes. I am allowed to see up to 3 students per 20 minute sessions.

I have recently discovered that the tutoring company will only pay me for 10 minutes for this session, despite delivering 20 minutes (my contract states each session must not be less than 20 minutes).

I have questioned this and have been told the expectation is for me to ‘increase my time’ or persuade the parent to pay for 1-1 sessions (which is twice the price for them). This particular school is in a deprived area and the parent cannot afford to pay the 1-1 fee and despite my efforts I have not been able to increase my time.

The tutor company have sent me a screenshot of the part of my contract which states I will receive 10 minutes pay per student, but have apologised for the ambiguity as each session must be minimum of 20 minutes.

As I am self employed I get no ‘perks’ which I accept, but this seems wrong to me so I messaged my line manager to say it’s not worth me travelling for this appointment to only be paid for 10 minutes but working for 20 minutes, and therefore won’t be continuing to see this student next term in the New Year. Manager has told me to explain the situation to the parent which I have. Parent has now made a complaint to the tutoring company stating how upset she is that her daughter has to discontinue lessons with me as she was making so much progress and was really enjoying her lessons with me.

I guess I am looking for advice as I really enjoy my job but this has soured things a bit for me and I am feeling awkward and feel my manager is really cross with me.

Any advice moving forward please?

I am registered with HMRC as self employed and have a self employment number which needs to be included on my invoices to be paid. I therefore don’t think there is any ambiguity surrounding my self employed status, The issue is more with the contract, it is quite clear from the wording that I am self employed eg things like I must provide my own resources, public liability insurance, proof of completion safe guarding training, enhanced DBS check etc. (I obviously pay for all this myself), However, there are clauses about not working for competitors which makes me question the validity of the contract.

I am not very good with legal matters - I am just worried now as I also work independently for myself providing exactly the same service which obviously is competition. This is not a secret, I have my own website advertising exactly who I am and what I do, but I’m concerned I am in breach of my contract and will get into trouble.

As I said earlier this is a good avenue for me to have ‘guaranteed’ work as this tutoring company is well known and trusted within many schools in my area and therefore I don’t want to piss them off, which is why I posted about issue in my op.

HMRC will issue anyone a self assessment tax return etc - they don't immediately look into the details. It's only if they open an enquiry that they'd get enough information to decide either way (this would impact on the the other party, not you. HMRC generally gross up, assuming what you paid is net, and the employer pay the missing PAYE and NI and penalty)

If I were you, I would talk to ACAS to get some advice

I am registered with HMRC as self employed and have a self employment number which needs to be included on my invoices to be paid. I therefore don’t think there is any ambiguity surrounding my self employed status.
It is possible to be self-employed (in one job) and employed (in another job) at the same time. And HMRC will decide if you are SE / employed based on the facts: if they are not aware of the facts then they will go with your / the agency's version of events until the shit hits some fan somewhere.

PS. Did I read the OP right? - that the council have set up this agency, that the council are charging parents to make good the insufficiencies in their schools.

No no no. Anybody can register as self employed with HMRC, they don’t check the nature of the engagement, that is for the individual / employer to ascertain.

That you have bought insurance and paid for your own DBS doesn’t make you self employed either, again you have got things back to front. The only thing that determines your employed / self employed status, is the nature of the contract for services.

And it can most definitely be ambiguous and there have been very many legal battles over employed vs self employed status, some very well known, Pimlico Plumbers was a big one, lots of gig economy related cases, have a google.

And it can most definitely be ambiguous and there have been very many legal battles over employed vs self employed status, some very well known, Pimlico Plumbers was a big one, lots of gig economy related cases, have a google.
YY. See also Uber.

@Trifletrifle others are correct - anyone can say they are self employed, but what determines whether you are self employed in reality and what HMRC are interested in for tax purposes is the nature of how you are directed in your work.

You are saying things about your contract and the type of work that you do that is raising concerns about whether this is legitimate self employment, or if the tutoring company are trying to pull a fast one regarding their responsibilities.

@Aprilx is absolutely correct in everything she says.

@Trifletrifle are you a music teacher? I ask because DD’s music teacher is having an almost identical issue with her council-run tutoring organisation. I work in HR and this really does have quite big implications, some of which have already been tested and proved incorrect in an employment tribunal.

There are lots of agencies operating this way.

The schools turn a blind eye to this sort of operation.

What happens if a child is off sick?

Hi @Trifletrifle Have you checked your status under IR35? There's some good, useful advice here (plus a questionnaire): https://www.gov.uk/guidance/check-employment-status-for-tax

I co-own a small business that uses self-employed contractors and have had to go through this for all of them - you can keep the results as evidence to show HMRC if they question your status.

I am absolutely no expert, but from what they are saying, that you can't work for others, and that they dictate when you work, might have an impact on your IR35 status. Definitely check this out - speak with your accountant (if you have one).

Hope you get it sorted.

Yes music tutor. I have spoken with colleagues who have been working for much longer with similar concerns. As it is council run, the tutoring bit doesn’t have the power to alter contracts. If you contact the council about this directly you are told to contact the tutoring department. 😬

The rates of pay are also well below average - even for this area, obviously it will vary a lot depending on region. Surprisingly some colleagues when I ask why they don’t just work independently see it as some kind or disloyalty! Anyway, I will see how it goes in the new year. I think what annoys me the most is charging parents top whack then paying tutors a pittance. I understand obviously it has budgets and needs to make a profit, but it also receives an awful lot of funding from grants from local authority and government. It would be fairer to charge parents slightly less and pay tutors slightly more- obviously this doesn’t make good financial or business sense to the local council.

It was also quite funny when I first told them my hourly rate (which is going rate for my area according to MU website), they basically smirked and offered £10 less per hour!

@Trifletrifle have sent you a PM

As it is council run, the tutoring bit doesn’t have the power to alter contracts. If you contact the council about this directly you are told to contact the tutoring department.
If you want to go nuclear then speak to HMRC and they will set their rottweilers on it. Or you could always threaten to do this and see if that gets the agency's attention.
Obviously, though, this will not help cordial relations.

IR35 only applies if OP delivers tuition through her own limited company, not through being self employed on her own account.

This company is taking the absolute P*. LEAVE THEM! If you are self employed then you set the hours, the rates, when you work and where you work. You also have to sort all your own stuff. If you are not self-employed, you are an employee, the company sort your tax, NI contribution, finding the work, your rates, your hours, and your work plan and take a cut of your pay. This company are taking everything the deserve as employers, and doing none of what they should do as a company. If they want you to have a contract with stipulations, then there have to be benefits.

Can You not offer your services to the parent directly as you are self employed?

Unfortunately, tutoring seems to be rife with these questionable working arrangements. For example, I work for a company that allocates me work as an online assessor (marking work), provides an invoice showing what I have worked, expects the work to be completed within a set time frame, monitors my work and issues mandatory training for the work. However, I pay my own tax (as self employed), I am not paid for holidays or sickness, and the work is insecure (no guarantee of allocations and allocations can be stopped with no notice and for no given reason.)

Like all workers in the 'gig' economy, I know I am being exploited, but I need the extra money (this is not my only job). Again, unfortunately, employers who adopt these arrangements, often depend on people who for one reason or another are vulnerable (perhaps they are carers and need flexibility in their work load, for example.) The situation is also often complex with the private company winning contracts with local authorities or colleges, showing the glowing CVs of their 'freelance' staff, and then cracking the whip for the freelancers to work for a rate of pay that is well below the standard rate, and in no way reflects the freelancers' qualifications or experience.

My advice OP would be to get out of this role as soon as possible. Look for other positions or perhaps set yourself up as a private tutor and see how that goes. I believe there is a 'Tutor' forum on Mumsnet that could advise you about how to take the first steps towards having your own business.

Sounds like how my daughter's music lessons work. I wanted a 20 minute group lesson but she was the only person who wanted to play that instrument. So she got a ten-minute individual lesson instead (I can't remember if I pay more).