what are the rules of self employment or sub contracted?

Question

im a hair dresser . i pay own tax and ni. we dont get paid holidays and treated as self employed but have to work 9 to 5 even if we dont get clients in but then we dont get paid. we only get paid for the work we do. we are now told we are subcontracted to work those hours. what are the laws and where do we stand

Answer 1

This is a big con. If you HAVE to work the hours specified by the salon, you can't be self employed. Its a way of employer's not having to pay holiday pay and NIC, etc. I would contact your local tax office and ask to be put in touch with the status inspector and ask them to give a ruling on your status. It's shameful the way employers try to dodge their responsibilities.
The sub contract situation the previous answerer speaks of relates to the construction industry.

Answer 2

You need to check your contract carefully. It is perfectly possible for you to be self employed in these circumstances but your working arrangement must be a contract for services and not a contract of service (employment).

How does the salon get its money? Presumably the customer pays the full charge to the salon , which then pays you. Two methods I have seen in operation -

The salon gives you a percentage of the charge. In this case there income will be dependent on the number of clients you deal with. In this case I would think it reasonable for you to have to provide cover for a minimum number of hours each week. I said provide cover because if you are truly self-employed then you should have the right to get someone else to cover for you providing that person is suitably qualified.

If the salon takes a fixed "rent" and gives you what is left over then I don't see they should dictate what hours you work. So long as you pay them their money (out of your own pocket if you haven't done enough in the particular week or month) then they should be happy.

Answer 3

First off the answer by archie is incorrect. The new rules regarding sub-contractors only apply to those in the Construction Industry and being a hair dresser well... you know the rest.

This sounds to me an employer trying to circumvent PAYE regulations. Fengirls advice is sound, visit your local tax office and discuss this with them. It could be that your employer is operating inappropiatley, and could well be investigated.

Do you have to fill in self-assessment tax returns each year?

To help you decide if you are self-employed or employed goto the link below......

Whatever your status go and discuss this matter with your local tax office that is what they are there for.

Answer 4

You probably have a lot of deductible expenses running a home daycare. It would be a good idea to see a CPA (NOT H&R Block) to get advice on what you can deduct and what records you need to keep.They'd probably have some suggestions you might not have thought of on legal deductions. You need to claim income in the year you receive it, so no, you don't have three years to report the nurse aide income, it must be claimed on your 2006 return. You might be thinking of the rule that lets you collect your refund without penalty if you file up to three years late and have one coming. You can definitely deduct your uniforms for that job. If you work at a facility regularly, like a hospital or nursing home, then you would not be able to deduct mileage, it would be commuting expense which isn't deductible. If you're traveling to homes of clients, you might be able to - another question for a CPA, since it depends on circumstances. If your mom's gross income for the year was under $3300 and you provided more than half of her support, then you can claim her if a few other rules are met, which they probably are. With two kids, and probaibly a dependent mom, $25K isn't a lot of money, so with any luck you'll still get your financial aid. It's not a matter that "they'll say" you made a lot of money - you made what you made, and not to claim it is illegal, plus you'd probably get caught and have to pay the back taxes, plus interest and possible penalties, plus cheating on taxes COULD affect future financial aid. As long as the baby was born anytime i 2006, you can claim her. The "someone" who told you she had to be born by June is wrong. On $25,000 income, unless you have a lot of deductions (again, see the CPA) your child credit even with two kids will probably not cover your self-employment tax. You'd almost surely also get the EIC - together, they might cover it, maybe with enough to get something back. You'd pay this on your net income, so it all depends on how many deductible expenses you have. Good luck.

Answer 5

the law is changing as we speak, you are and will be, in future, required to fill in your tax return, each month on line, as you are by the sound, of your term of employment sub contracted, this is very easy as you submit your earnings each month and your earnings are then calculated on an individual basis on how much you have to pay, this is an easy way of keeping on top of how much you pay Mr Taxman. also where is your contract ? oh yes thats right your self employed you dont need a contract. wrong you need to have the terms written down of how you are working. This may sound draconian but your existing boss sounds worse ! if you want a self employed tip ? go total self employed & get your own custom base. talk to the tax man as you go, he will be a person to have on your side, to point you in the genrial direction go to your local job centre & ask for a busness adviser. to look for work try old people homes and leaflet drop your imediate area, they supply the shop floor by you cutting thier hair in thier home, all you need is the conviction of your own skill & a bit of confedance & before long you might be takeing your old bosses customers.take the plunge and good luck.