Bank account application - self employed or employed?

[Jenala]

I think this is the right place to post as it's more about money than work.

DP works in construction on a self employed basis. This is through the Construction Industry Scheme (CIS) which means all his income is taxed at 20% before he gets it. He then submits a tax return each year and generally gets a refund. I think he is classed as a subcontractor, so the building company pays a secondary company to supply bricklayers and labourers. This secondary company then pays DP on a set date each month and sends him a payslip. So basically he is treated as though he is employed but with none of the benefits of annual leave and sick pay. I believe this is a bit of a contentious issue within the industry.

Anyway I am trying to apply for a joint current account online and have to put if he is employed or self employed (sole trader, director or one other unrelated category). Self employed is correct, but it then asks about your business name, company number etc and it's all a bit confusing because he has none of those things. Would I put self employed as a sole trader? That's not really eight either. Employed makes more sense as he just gets a set wage like anyone else but would not be technically correct. I'll give them a ring or just apply in person rather than online but thought someone here might know.

Yes, self employed means sole trader and vice versa - it's the same thing but just different name. You need to complete the form for self employed not employed.

Thank you.

What would I put as business name and number? Just his name and phone number?

If he gets a regular wage, paid into his bank account by just one company, for roughly the same amount each week/month, I'd say he was employed.

If he gets a regular wage, paid into his bank account by just one company, for roughly the same amount each week/month, I'd say he was employed.

What matters is the legal reality and what's on his tax returns. The mortgage co will probably want to see his tax return figures and it'll flag up straight away if there's a mismatch between declared profits as self employed for tax, against a mortgage application showing employment. In the latter case, the mortgage co will probably want to see payslips and P60s which the applicant won't have. Then the application will be rejected and will need to be re-done. I see this all the time as I work in the sector.

Subbies under the CIS system are legally classed as self employed. The main contractor doesn't deduct tax in the normal PAYE way it's a separate system as you probably know.

The Main Contractor is on dodgy ground though. We pay our subbies monthly & try to endure the amounts are different each month & it's not Labour only.

Is that so Alex? I was incorrect in that he is paid fortnightly, sometimes slightly different days but they book in the same date each fortnight. I think they are the main supplier of brickies and labourers in the county so I suppose they must be doing things right.

It's hard though as for all intents and purposes he is treated like an employee (although I suppose he can bin off work if he wants to and no one really cares but he never does because he needs to work!) but no sick pay or holiday. So it would cost us an extra few hundred to go on hols or whatever. He's also had a couple of minor injuries and I'm very scared of him hurting himself more seriously and not being able to work. We try and save to cover ourselves but it's not easy and we'd get through them quick if he was off any length of time. You see labourers up there with casts on and stuff it's rubbish.

Thanks for the info though everyone

A lot of firms use subbies as a way of getting around putting people on the payroll. We only use them if they are specialists we don't have in house or if we have a contract where we need more people short term.

Kazzy, so do I. It's an application for a current account the OP is referring to, not a mortgage.

He is self employed.
If you say he's PAYE the bank have the right to ask to see his P60
and you won't have one.

I knew I needed to out self employed really. Just none of the options seemed to apply to him. I'll put sole trader and his name and mobile as his business details I guess.