My nephew was recently ill for about a month, and had to go back to work before he had properly recovered, because he didn't get paid sick leave (SSP or other)and couldn't afford not to be paid. When I asked him why, he said that he was self employed. However, he has none of the perks that the self employed enjoy, and his 'payslip' shows NI and income tax.
Example from last August:
5 weeks (totalling 192.5 hours) paid on 15th Sept 04
Your total 1540
Tax free income:
Schedule E expenses 330
Administration costs:
Umbrella fee 44.95
Gross earnings 1165.05
Employers NI 80.43
Gross pay for tax purposes 1084.62
Deductions:
PAYE 131.15
Employees NI 69.03
Total deductions 200.18
Additions
Sch E expenses 330
Payment due in your account 1214.44
He is an IT telephone support worker. He sits at the same desk every day, so I would class that as his normal place of work. He says that the Sch E expenses are for food - he can claim 15 pounds per day, tax free (hence the 330 pounds shown above). He has to book holiday (which is unpaid) in the same way that an employee would have to, and has to work set hours.
I am worried that if the Revenue get hold of this, they will pursue my nephew for unpaid tax.
Can anyone tell me whether this is legal, and if so, how it can be legal?
Anon
Replies (3)
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Employment law
This is really an employment law query, as many status issues are. It might be wise to contact an employment law solicitor.
SSP due
If your nephew was away from work for more than three days, then he is due Statutory Sick Pay from whoever is deducting the Class 1 National Insurance.
However I suspect he is working through one of these IT umbrella operations, which will mean that the SSP is effectively deducted from the gross income anyway.
NeilW