1st August 2008, 09:26 PM
Why do companies do this?
Companies may use allegedly self-employed field staff because of inertia; while individual archaeologists may be used to claiming to be self-employed and object to being employees. Alternatively companies may be doing this because they are attempting to avoid:
paying employers contribution on National Insurance;
carrying the administrative cost of running PAYE schemes;
having to pay staff promptly (invoices can be deferred from payment for 30 days);
allowing archaeologists to be covered by contracts of employment;
allowing archaeologists to gain employment benefits (leave; benefits; job security etc);
allowing access to pension schemes (stakeholder schemes etc);
providing insurance cover for archaeologists (employers insurance
cover employees not self-employed).
The apparent benefit to the self-employed archaeologist is the higher day rate than that which employees may receive; although the gained monies are dwarfed by the passed on hazards and liabilities. Most significant is that the company and individual, in the case of field archaeologists, are most probably acting in breach of Inland Revenue regulations.
Company liabilities
Any company using self-employed field staff (who are not truly self-employed) are carrying a serious tax and National Insurance liability should they be investigated by the Inland Revenue and found out - if they are knowingly using self-employed field staff (who are not truly self-employed) they are carrying out a fraud.
In addition they are in danger of being taken to industrial tribunal by former or current ?self-employed? staff who could reasonably claim that they are in fact employees and entitled to the consequent benefits. This is most likely to be tested in the event of accidents or injuries where Employers Liability insurance would not cover the supposed self-employed staff and the injured individual would have to test their effective employment status through a tribunal to gain access to the protection of the company insurance provision.
Self-employed liabilities
By being registered as self-employed the individual takes on board the responsibility for tax and national insurance payments, record keeping and financial management. Financial management should include laying monies aside for payments and coping with cashflow problems while waiting for invoices to be met and when not working (inc. holidays).
The self-employed are also responsible for supplying themselves all
equipment and paying for adequate insurance provision for them to work (both in case of them injuring themselves or causing injury to others).
"I don't have an archaeological imagination.."
Borekickers
Companies may use allegedly self-employed field staff because of inertia; while individual archaeologists may be used to claiming to be self-employed and object to being employees. Alternatively companies may be doing this because they are attempting to avoid:
paying employers contribution on National Insurance;
carrying the administrative cost of running PAYE schemes;
having to pay staff promptly (invoices can be deferred from payment for 30 days);
allowing archaeologists to be covered by contracts of employment;
allowing archaeologists to gain employment benefits (leave; benefits; job security etc);
allowing access to pension schemes (stakeholder schemes etc);
providing insurance cover for archaeologists (employers insurance
cover employees not self-employed).
The apparent benefit to the self-employed archaeologist is the higher day rate than that which employees may receive; although the gained monies are dwarfed by the passed on hazards and liabilities. Most significant is that the company and individual, in the case of field archaeologists, are most probably acting in breach of Inland Revenue regulations.
Company liabilities
Any company using self-employed field staff (who are not truly self-employed) are carrying a serious tax and National Insurance liability should they be investigated by the Inland Revenue and found out - if they are knowingly using self-employed field staff (who are not truly self-employed) they are carrying out a fraud.
In addition they are in danger of being taken to industrial tribunal by former or current ?self-employed? staff who could reasonably claim that they are in fact employees and entitled to the consequent benefits. This is most likely to be tested in the event of accidents or injuries where Employers Liability insurance would not cover the supposed self-employed staff and the injured individual would have to test their effective employment status through a tribunal to gain access to the protection of the company insurance provision.
Self-employed liabilities
By being registered as self-employed the individual takes on board the responsibility for tax and national insurance payments, record keeping and financial management. Financial management should include laying monies aside for payments and coping with cashflow problems while waiting for invoices to be met and when not working (inc. holidays).
The self-employed are also responsible for supplying themselves all
equipment and paying for adequate insurance provision for them to work (both in case of them injuring themselves or causing injury to others).
"I don't have an archaeological imagination.."
Borekickers