Morning All

A nice little part time job of 14 per hours a week has fallen into Mrs R lap, and she has been given the option of either been employed or contracted.

Contracted is looking maybe the better option on the basis she’ll be able to take more holiday and also be paid for any overtime.

Not worried about tax implications (other than making sure we pay the right amount, the contractor hourly rate will be higher than employed, but as of yet we don’t know either rate) and not worried about the job security as the employer is a friend and thoroughly decent gent who we trust unreservedly. He BTW is just giving the option and not pushing for either.

So my question if I may, to the great and good, is what are we missing or need to take into account.

Thanks

Google IR35 or is she just going to be “self-employed”?

Employed should pay overtime too?

Yeah that had crossed my mind, will query that.

Sorry as for IR35/tax etc … when I said not worried about tax, that was on the basis that she not even be close to surpassing personal allowance.

Not sure the personal allowance has anything to do with IR35.

If the work could be considered to be disguised employment by HMRC then employers NI will be due.

Depending on the turnover of the hirer, the worker could land up on the hook for the Employers NI that’s due if the worker is hired on an (incorrect) ex-IR35 basis.

In this case it sounds like disguised employment anyway if the hirer is offering a choice of role vs assignment for the same responsibilities.

Contracted should be higher paid, and considerably so. Contract offsets the lack of other benefits such as job stability, paid holiday leave and so forth.

A salaried employee should still get paid for overtime. Why would anyone work for free?

If either of those things don’t apply then I’d walk away, good friend or no.

IMHO, etc etc. It’s a very long time since I last did contract work.

Hite-rite, thank you something to bear in mind.

Guess we will see the exact details of the terms in due course, and it will be helpful to raise these questions early.

Employers NI check.

For earning under tax threshold why go contract? Presumably more hassle dealing with tax than PAYE. And a friend surely wouldn’t expect free overtime working.

Intermediaries legislation (IR35) only applies if you are using an intermediary (usually a limited company).

If the engager is willing to contract on a self-employed / sole trader basis then will be cheapest for them and Mrs R. The only reason they might not do this is if they think Mrs R might not pay her tax, in which case they could be liable.

PAYE is simplest option though.

IR35 is not continuing from April so defunct now i think.

IR35 is continuing from April – but the determination risk is changing back again.

It’s a complete joke to be honest but reflects the world view of useless Treasury / HMRC officials who are determined to stamp out any enterprise.