Employed/Self Employed

[littlemissminor]

Wondering if someone has any advice at all please;

I have been offered a part time job in a small local cafe when my maternity leave finishes. The owner has said that it would be on a 'self employed basis'. Can anyone explain the actual implications of this please?

I doubt I'd earn enough to use all of my tax free allowance, so I imagine it's just NI contributions/no holiday or sickness pay that would be an issue?

Thanks

What work will you be doing in the cafe? You need to ensure it is a job where you are actually self-employed.
If you are serving customers, clearing tables etc you should be on their payroll as an employee.

The cafe is trying to avoid it's responsibilities as an employer. Working in a cafe is not the type of roll that you would normally associate as self employed. They are doing to it avoid employers NI contributions, pension contributions, statutory allowances etc and holiday pay and even just your general protection that being an employee would have.

There are very specific guidelines that help to decide whether the roll is self employed or employed.

Another thing would be that you would need your own public liability insurance to work there if you were self employed. You would not be covered by her insurance in the event of spilling a hot drink over someone and they sued.

The cafe is trying to avoid it's responsibilities as an employer.

This. There is no way you should be self employed in this role.

Sounds really dodgy and not worth the hassle.

What PPs says. Working regular hours for the dance employer is not self employed.

You can't choose when to work and when not to, you can't send someone else in if you're unavailable, you're not working for a variety of different clients.

*same, not dance!

The implications are that they're asking you to commit tax fraud.

I bet they have told you what hourly rate you will get as well?

I'd steer clear and report them to HMRC for dodgy practices.

blimey, I thought it didn't sound quite right!!

That would be a no from me then!

Thank you for all your help - I'd never have even thought about liability insurance etc... I am so glad I posted now!!!

There is a list of things that are common with self employment it is not necessary that everyone of them is true but they should mostly be in. L particular order

1. You set your own hours and holidays and rates of pay or at least negotiate
2. There is a degree of personal financial risk
3. If a mistake is made you put it right at your own expense
4. You provide most of your own equipment
5. You work for more than 1 client
6. You can get someone else to do the work job for you. Provided they are suitably qualified
7. Generally speaking you wear your own clothes /uniform not the uniform logo of company you are working for

Not everyone will fulfill all of these, or some will be part of contract eh. a self employed NHS dentist will normally have set hours but they can use a locum the fees are set by NHS but the dentist decides how many patients they see,
A cafe owner would generally be self employed but not waitresses unless extra hired in for an event, you wouldn't become an employee for doing a few shifts at busy times as you are free to work else where but you are an employee if you are working there regularly even on zero hours contract

Look at the CEST tool on the HMRC website.
It’s very very unlikely a job like that would be self employed, unfortunately as people get more desperate the cafe owner will probably get away with it.

Yes I second the CEST tool. It is very clear.

It is very, very unlikely that working in a cafe could be legally self employed.

So if they are shirking their responsibilities in this way, what else will they do?

Every employer in the land would love all staff to be "self employed". But of course that would not suit all employees.

I mean no dis-respect, but waiting work cannot by any means be classed as specialist - you are merely providing your own labour.

There is no way this would meet the tests of being self employed.