Was talking to someone earlier regarding being self-employed or employed.

If you submit an invoice to receive payment you are self employed.

However, if you fill in a time-sheet to receive payment, you are employed. Not self-employed, even if contracting.

Is this correct? Not finding much of any help on Google.

 

Eh?
Do you fill a time sheet in for what you've done?
Do you pay your own tax and ni?
Does the person pAying you rob 20% before paying you?

 

I believe you need to search for info on IR35 which is the subcontractor clause.

I used to invoice for my work as a contract trainer and was classed as not employed for tax on that income, ie I was able to offset travel expenses etc.

http://www.hmrc.gov.uk/leaflets/guide_limitcomp.htm

 

The lad (subby)was filling in a time-sheet for his hours on-site, then the submitting it to the company paying him (contractor).

20% was being stopped by the contractor.

 

I fill in a time sheet and also send an invoice. I pay my own tax and ni. And am self employed

 

He's a sub contractor then bud if they are taking his tax payments

 

Yep that's the difference....you pay your tax/ni

 

That's what I thought. However, he's had advice telling him he's actually an employee and is also entitled to holiday pay, simply as he only submits a time-sheet and not invoices.

 

Not heard of that mate?
I'm self employed , but also sub on new builds when quiet
Not that I fiddle any money but it boils my **** losing 20% when subbing

 

This is a very grey area and one the Revenue are very interested in.
Basically, you are self employed if you work for more than one person/company or supply people with a product or service.
Sub Contractors are forever being investigated as they tend to work for one company and submit a time sheet. Revenue wants as much money as it can get and if they can prove you work for only one Company, they try to sting the subbie and the firm for NI and class the subbie as an employee.
Self employed do not get holiday pay, though some build this into their fees. They also are not entitled to any redundancy if any of the firms they work for, go bust.

 

As an ex-Revenue Inspector, total bollox

There's 101 factors taken into consideration when deciding employment status and contrary to popular belief it isnt just about getting the maximum contributions in tax and N.I., it's also about protecting employee rights.

Without knowing the particular details of the work he does it's impossible to say whether or not he's employed. However if an Inspection uncovered a business using casual or self-employed labour when they should be on the books, they would most likely find themselves on the end of a bill for unpaid tax and N.I. with only unpaid contributions in the current tax year reclaimable from the employees.

 

BOO......HISSSSSSS......

 

Ex you dick....we all make mistakes in life!

 

He was a sparky's mate and I believe only subbing to the one contractor, no-one else. They paid him short, he didn't check his pay slips as they were going to his old address. Once he tried to bring it up and requested advice on the situation, someone allegedly turned up on his door step telling him to stop trying to cause trouble and he wouldn't be getting the difference. If that bit is true, and not just beer talking, I can't imagine him reporting it to HMRC.

 

A sparky's mate is never going to be self-employed.

If he was paid short but tax and N.I was correctly deducted on what was paid then its up to him to sort with his employer.

If he was paid short, the inference being that no tax/N.I. deducted as he was being treated as self-employed, then yes HMRC would be interested. Just because its not a multi-million pound business doesnt mean they woudn't be interested.

As for turning up on his doorstep, sounds like bit of intimidation going on.