Register as self employed to work for someone....

[KatharineC]

I left full time work over 2 years ago. A job opportunity has now arisen working for an individual (not related to my previous job) which would entail me working a maximum of 8 hours per week. I have been advised I would need to register as self employed. I would therefore be self employed but working for someone. I've had a look on HMRC website as to what to do and how to do it but got very confused. Can any of you offer any advice or guidance please? Thanks :-)

If you are working for one person, regular hours and they tell how to do your work you may be an employee.

www.hmrc.gov.uk/employment-status/

Thank you for that. I would be taking over from someone else, and she apparently registered as self employed.

Just because the previous person did it that way doesn't mean that was correct.

What job is it?

I would phone HMRC, give them all the details of the job and ask them whether you should be employed or self employed. The rules are quite specific and you don't want to accidentally break them!

It wouldn't be OP breaking the rule, it would be the employer.

It is often a way to get out of paying paying employer's national insurance contributions but also a way of not paying up for holiday time or sick pay.

Thanks girls :-)

Not an expert, unlike some on here, but my understanding is that if you work for 1 employer you are employed.
Some unscrupulous employers might try to claim you are self employed to avoid giving you the benefits you are legally entitled to, HMRC might not be too happy either.

The issue is IR35 which tries to prevent employers offering self-employed roles instead of employing someone. As mentioned up thread they make a saving on employers NI.

Whilst HMRC can go after the company I have also read online that they can (and will) go after the self-employed person especially if you only have 1 "client".

The other issue is your lack of benefits if you are not employed - sick and holiday pay etc.

In addition being self-employed you will need to keep basic accounts and do your annual return.

I am guessing as he is an indivdual he doesn't want the bother of an employee....and would rather you had the admin burden etc.

IR35 only applies if you are trading through your own limited company so is not applicable in this case.

So, sounds like it would be an employee role however the risk is taken by the 'employer' rather than the self-employed person. (Different if OP was a limited company).

OP does not have any legal risk attached, other than the obvious downfalls such as no holiday/sick pay etc.

Should you have taught me something. 3 years on the Freelance thread and the distinction of IR35 being related to limited companies only has never come up when the issue has been discussed. Thanks for pointing that out, sorry I gave misinformation!