29th July 2004, 10:44 AM
Try http://www.inlandrevenue.gov.uk/pdfs/ir56pdf for the definitive answer.
Basically if someone else tells you what to do, sets the hours of work and provides the tools (among other things), you are an employee and should be dealt with under PAYE. The unit is trying to get out of paying the employer's NI contribution, not giving you your rights to holiday and a whole host of other things, and presumably hoping to circumvent any other employment law issues. Their insurers might be a bit dubious about the situation also.... If that's how they want to treat 'staff', leave 'em to it.
Don't be a chump - if they want to operate that way, leave them to it. There is lots of other work out there for units which operate professionally.
Basically if someone else tells you what to do, sets the hours of work and provides the tools (among other things), you are an employee and should be dealt with under PAYE. The unit is trying to get out of paying the employer's NI contribution, not giving you your rights to holiday and a whole host of other things, and presumably hoping to circumvent any other employment law issues. Their insurers might be a bit dubious about the situation also.... If that's how they want to treat 'staff', leave 'em to it.
Don't be a chump - if they want to operate that way, leave them to it. There is lots of other work out there for units which operate professionally.