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Can I do this!? P/tmself employed role? help!

14 replies

Badvoc · 14/03/2013 16:20

I have been offered a role as a childcare assistant working for a friends childminding business.
It will only be 9/12 hours per week.
She cannot/ does not want to deal with Tax and national ins and has asked me to register as self employed. She knows other CMs who have done with with their assistants.
I will not earn Earn enough to pay tax - not sure about NI.
A brief peruse of the HMRC website, it appears to state I would be classed as employed, and not self employed?
Does anyone know the ins and outs of this?
I have been cut off by HMRC phonelinemso many times today!
Thanks.

OP posts:
ethelb · 14/03/2013 21:26

It is very naughty of them, but increasingly common. She could get into a lot of trouble for this but you wont.

But don't what ever you do set yourself up as a limited co. Then you will be liable

Badvoc · 14/03/2013 21:29

Yes. £3000 fine isn't it?
I have only skim read the HMRC website but it looks like a no go.
She knows other CMs who do this so probably doesn't realise it's not allowed.
Such a shame...was so looking forward to going back to work :(

OP posts:
ceeveebee · 14/03/2013 21:30

The NI limit is £107 pw (going up to £109 from 6 April) so if you are below that then she won't have any tax or NI to worry about anyway? Assuming you are on less then £11.25 an hour then there shouldn't be a problem having you as an employee?

UniS · 14/03/2013 21:30

I don?t think you would fit the rules as "self employed". Sound more like casual employment.

IF you were to be properly self employed you would have direction over your own time ad work. Which is true of many childminders, but not true of an assistant to a childminder who works to the childminders direction.

Badvoc · 14/03/2013 21:33

That's what I don't understand...I won't pay tax or NI anyway....
Hmmm...

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ceeveebee · 14/03/2013 21:35

Well as an employee you'll be entitled to 5.6 weeks paid holiday, sick pay, maternity pay etc , so maybe that's the real reason she doesn't want you as an employee?

Badvoc · 14/03/2013 21:36

Yes, must be.

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nannynick · 14/03/2013 21:41

Post on the Childminders board, get the view of other childminders.

In my view you would be an employee with regard to employment law and tax law. You are not taking risks, will not have your own clients, not getting choice of when to work, i do not see how you could be SE for the role.

UniS · 14/03/2013 21:44

If one employs people ( other than a family member doing admin) one needs to have employers liability insurance. Its a cost that puts Very small business owners off employing other people.

nannynick · 14/03/2013 21:50

Employers liability cover is part of NCMA childminder insurance, though a new certificate needs to be issued at cost of 5 pounds. Other insurers may also include it.

Badvoc, what salary would you be charging if SE? What salary are the offering you? Less than 107 a week?

nannynick · 14/03/2013 21:54

Working with Others factsheet from NCMA. Bottom of page 1 it says that the childminder is regarded as the employer for tax purposes.

Badvoc · 15/03/2013 09:46

It would be less than min wage nanny chick.
Thanks for the info

OP posts:
nannynick · 15/03/2013 20:28

Another reason why they want you to be self employed, they do not want to pay at least NMW.

If you were legitimately self employed you would be setting your own rate of pay, taking into account your operating costs including taxation and your holidays etc.

I suggest you look for other work. If you want to help your friend out, help them for free. If you need paid work, find an employer who will pay you properly.

Badvoc · 15/03/2013 20:37

Yes.
I will help it I think, but I need at least NMW.
Thanks x

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