Don't want to go to in depth into specifics..of this particular case, but lets look more general
However, lets look at it this way:
8 hour day = 40 hour week? (though I expect this is meant to be 37.5 hours with the lunch break.
This is labour only self employment : and so tools etc can be supplied by the employer.
However. taking the figures. for a Digger G2 to A supervisor G4
?290.28 pw to ?338.11 pw what is on offer here is :
?337.5 - ?425
lets just take a month
this makes it
?1350 (?1161.12 min BAJR rate) - ?1700 (min BAJR Rate ?1352.44
of course the holiday time (or in lieu) that you would get as an employed person of 2.333 days per month is now gone.
(subtract ?157.47 - ?198.30 )
Labour only sub-contractors is the practice that an individual contractor supplies his labour to complete a job and is paid in a lump sum. Such workers will often move from employment to this form of self-employment regularly. This is done with the acquiescence of the main contractors who thereby have less administration and do not pay secondary national insurance contributions or industrial training levies. However, such labourers cannot claim employment protection rights. Action has been taken regarding the avoidance of tax associated with this type of employment/engagement in that independent contractors are treated as though employed under sections 559-567 of the Income and Corporation Taxes Act 1988.
http://www.opsi.gov.uk/acts/acts1988/ukp...ch4-l1g559 Therefore, payments made by a main contractor to a sub-contractor must have tax deducted at source, except where the sub-contractor has obtained a certificate that he is operating a business covered by adequate insurance and that he has complied with tax requirements over a three year period. The contractor is responsible for Class 1 national insurance contributions
So there is an additional NI Class2 paid by the self employed digger...
There is also no sick pay nor is there any of the other employment protections.
You could of course move from labour only job to labour only job... however .... if you do any real self employed work.. you better have insurance.... (see the recent guide online)
by the time you take all this into consideration.. and by the way.. according to the recent ruling by the Inland Revenue started by the Wrexham branch:
Accommodation is a taxable for archaeology, and must be declared as such, unless it can be shown that you are normally working for a company and this is away from home, otherwise this is seen as your main place of work, and therefore any provision of accommodation is subject to tax.
That 'fat fee' is not looking so fat any more.
Of course it is up to the individual to decide whether they will work for ?67.5 a day.. completely up to them.
but start making the deductions...for a month ( I agree we all have to pay tax.. so lets not confuse things, just teh extra deductions)
?1350 - ?157 (no holiday pay) - ?10.40 (Class2 NI) ?1182.60 which gives you an extra 21.60 in your hand every month (of course you have no sickness rights.. so take just 1/2 a day off, and you are now down over a tenner!
And you better be paying tax as well.. well in fact, it better be deducted at source! oh and insurance when you are not a labour only?
What's my self employed rate... as a digger.. I would not go out for less than 100 quid a day.. simple... and the more I am expected to do, the more I charge... and I would expect a contract that reflected that.
For really I think that the poorest he that is in England hath a life to live, as the greatest he
Thomas Rainborough 1647