03 Dec Same Hours Every Week – Self-Employed?
We regularly visit clubs who have decided to employ their coach/groundsman/cleaner because they were told that they cannot be engaged as a self-employed worker if they require the person to work the same hours week in week out.
This is not correct – you can engage a self-employed worker to work for you for the same hours every week, provided that you have ensured that they are registered as self-employed and that you have ensured that you meet the HMRC self-employment guidelines, i.e. you are working with the person in a way that will satisfy one of three scenarios outlined in the guidelines.
The three scenarios that satisfy the guidelines are as follows:
- You have a contract with the worker that states that they are obliged to substitute and have the right to substitute, and said substitution does actually take place. The worker must also be required to pay the substitute.
- You do not require the worker to work at set times and venue – the worker decides when and where they work. Clearly, this scenario is the one that is failed if you require the person to work the same hours week in week out but this will not be relevant if you can satisfy scenario 1 or 3.
- You require the worker to provide their own equipment and charge them for the use of any of your equipment and facility use. The charge should be made irrespective of whether the coach works or not, i.e. it is a fee that they must pay even when on holiday. The fee can be financial or time based, e.g. you could require the worker to provide unpaid coaching/administration as their fee, as practiced by David Lloyd and Virgin Active centres.
You only have to pass ONE of the three scenarios to satisfy the self-employment guidelines, not all three, so it is possible to engage a self-employed worker to work the same hours every week.
Contact us if you need further clarification or visit our support centre for further free expert online advice and support.