Are You Staff or Freelance?

[David Ripley]

Where to provide their services - Can I decide to work at home as say, a lighting tech during production week? No? - PAYE

How about a domestic plumber - can they decide to repair your burst pipe in their own home? Of course not. They can, however, choose whether to take on that job, just as the lighting tech can. By your logic, every self employed tradesman would be PAYE, which clearly doesn't pan out. The crux of the question is in choosing which jobs to take on. Several of my colleagues in my day job can choose whether to work in the office or from home but they're very much PAYE. But they don't get much choice in the work that they actually have to do in whichever location - that's the differentiating factor.

 

I am merely pointing out how HMRC look at it and as I said most people cannot satisfy all the indicators they have on their website so may be counted as employed. It's between you and them to 'discuss' although their decision is usually the right one. By the way I doubt many of your colleagues are 'choosing' in an HMRC way to work at home - more likely they have their employers permission to do so in line with company policy. Presumably the mangement could veto it at any time.

 

The point I was trying to make is that it's not just about registering for self assessment or having a UTR, it's a bit more complex than that.

 

David

[Pete McCrea]

Another key decider in HMRC's criteria is Business Risk. They look to see if you truly are taking a risk in being self employed. A plumber with a van and tools, has quotes to do, and takes the risk on pricing a job for figure X in that he'll be able to do it and make a profit. A Self employed technician takes a risk in quoting for a job in that they can achieve it, do it well and get asked back. The risk element is slightly different in our industry, but still a valid indicator.

[Bobbsy]

Well, it seems that just under 59% of responders are either purely staff or have staff jobs but do some freelancing on the side. Only about 38% of responders are earning their entire livings without some form of staff/contract job.

 

...which answers the original point made elsewhere that nobody in this industry has a staff job so school leavers might as well take the steps to become freelance from day one.

[zonino]

Provision of kit is also an indicating factor for HMRC - a plumber almost certainly provides their own equipment

[indyld]

Moderation: Personally, I'd call the winner the one who got paid most, for the least work!

mods

 

Hey, who's been looking through my personal manifesto? It's supposed to be private! ;-)

 

And you forgot to add the bit about doing it all with people who's company I actually enjoy...