I just quit self employed role. what can i expect

[Coconutmummy]

Hello, I hope you can help me out or direct me to the next way forward. I just quit a job that earned me 1500 per month. (Self employment) I have 4000 invoice outstanding. Will they pay, what can I do if they don't. I am relieved and scared at the same time.

Thanks in advance for your responses

What makes you think your client won't pay your invoices?

Not sure what you mean by 'next way forward'? Do you mean to get a/some more clients, or are you just meaning if they don't pay what steps you take?

How on earth would we know that?

think you need to speak to someone like CAB rather than online

and maybe you should have taken advice beforehand before being in this position>?

Flowery I mean what recourse do I have if they do not pay my outstanding invoice. Do I need to go to the small claims court? I was employed by this organisation for 3 years. I then became an associate for 3 years. I resigned yesterday because due to administrative issues I have not been paid since May. I was not offered a new contract when I went from employee to self. Employed.

Sounds like a weird set up.

I would take them to the small claims court.

Sounds quite dodgy to me.

My understanding is that an employer cannot just state that an employee is from then on self-employed. Is this what happened to you?

I can't see how you can 'resign' from self-employment.

Can you give us a bit more info on how you moved from employment to self-employment?

I think it sounds highly unlikely you were self-employed, regardless of whether you and your employer called it that or not. It's not something you decide, either you're employed or not, and if it walks like a duck and quacks like a duck, it's probably a duck, in other words if the nature of the relationship resembles employment, employment is what it is.

That probably means there are also umpteen employment rights you've been denied and could claim, and would also mean hmrc would be interested in your employer calling its employees self employed in order to avoid their responsibilities.

I would imagine that gives you a reasonable amount of leverage in terms of negative outcomes if your employer doesn't pay you.

Have you been paying tax and NI?

I worked full time for this organisation, and reduced to part time, essentially going from 5 days a week to 5 days a month. I started work for another employer for the other 4 days. I stayed with my previous employer, however, to avoid waiting to the end of the year to get my tax refunded, it was agreed that i become an associate. I returned all equipment and had to provide all these independently and we agreed a daily rate for my work.

This is where i should have been offered a contract to that effect but i was not, there was never a problem with the arrangement. I registered with HMRC and pay my taxes and NI which is done through an accountant for this aspect of my employement.

The original ppl who agreed my rates and rules of engagement agreed to pay my invoices on receipt. This has been the practice for 3 years, the company was taken over by a new company who advice that they are changing thier way of working and as such all invoices will not be paid as before, hence why i am waiting for work done in May to still be paid.

Under my previous contract as an employee i had to give a months notice, however as i did not have what i considered a contract of engagement with them and especially as the new arrangements was putting me into financial difficulty. I advised with 1 day's notice that i would no longer work for them because I was told to expect my invoice to be paid on the 30th of this month. When it did not arrive, I was told it would be sent on the 03rd and cleared for the 07th of Aug.

Now i need to hand my work over to another professional, but i do not know what my rights are. I am so sorry i am late responding. I have a 16 month old who still struggles getting to sleep. Thanks for all your advise so far.

Not sure what you mean by your 'rights'. If you have been genuinely self employed then your rights are very little and basically extend to being paid what you owe. If they ultimately don't pay, you could consider the small claims court. You haven't helped yourself by continuing to work without a written agreement confirming payment terms/rates but if you have plenty of historical invoices, dates etc as proof that will help.

What makes you think they won't pay you?

Thanks for your response.

I have been given several dates where I was supposed to receive payment and have still not received anything. Last call was that probably payment would happen on the 03 rd or 7 th of Aug. if nothing happens, I will look at going through the small claims court. I definitely will not do this again without a written contract

Thanks