The recent decision on Pimlico plumbers and whether someone is self employed, employed or a worker is going to have a huge effect on the building industry and others. The problem as well is that it isn't just legislation going forward it can be retrospectively applied. So firms could be getting demands for the 20 days holidays that subbies/contractors didn't get while they worked on a long term project. HMRC can also look at how people were "employed" and can make retrospective determinations on people returns on such things as transport and travelling costs etc. There's going to be a lot of hurt and pain coming from this
The whole issue is a minefield. My other half's daughters had been doing stable work for a while, these "employers" would insist on employing her as a self employed "contractor" and pay her cash with no Tax or NI deductions, holidays etc, even though she was clearly employed by them. This practice needs to get sorted.
There is no way that could be described as "self employed". Would they would earn enough to pay tax & NI ?
Agree it needs sorting, as does zero hours contracts etc. My definition of employed or self employed is, can you choose what work you do and when or are you tied? Simplistic I know. But eroding workers rights is a pre cursor to things like immigration and cheap labour. Oh no, another tin of worms
Exactly - she was clearly employed. Whilst she may not have paid tax (I think would be eligible for NI though?), this employment would not have earned her "points" towards the state pension plus no other employee benefits she is entitled to like holiday and sick pay.
It actually down to control. If someone tells you what job to do, when and how to do it - it is defined as control. Which is the test for worker/employee
As I see it, if the chap was "self employed" , then he had the right to work only the hours he wanted to. As it is, Pimlico Plumbers wanted him to work 5 days per week, solely for them. Surely he's either employed or a worker. Can't possibly be self employed.
Exactly - the employer wants to have their cake and eat. Have their employees as "contractors" but have control over them. Can't have it both ways!
A lot of pro footballers got caught like that previously. Many worked through their own Ltd company and hence paid themselves dividends at then below 20%. The ruling was the same as the Pimlico one - you were their kit, told when they played and for how long also how they had to play and of course they could only play for one club at a time.
Mr Pimlico Plumbers is a lover of cheap foreign Labour, hence why he's cried so much about Brexit, it just shows the mark of thoses that wanted to stay, care a jot about your own only how fat your wallet will be.
When this came into my industry some years ago the contracts were changed to say your daily rate included holiday pay, nothing changed.
so based on a rough calculation there is an underpayment of at least £2.6m per year in Tax & Ni and they can go back a long, long way under current rules. Shame ,.....
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