H&H reports concerns re injured self-employed grooms

[Lawhorse]

Today's H&H business newsreports concerns that self-employed grooms may be unable either to claim on insurance or get statutory sick pay. See article at http://www.horseandhound.co.uk/news/new-insurance-policies-to-help-grooms-injured-at-work/
This is just one aspect of a much wider issue which is whether these grooms are genuinely self employed at all. Very many grooms who are treated (often perfectly willingly for tax reasons) as self-employed are actually employees. All may be fine until there is an accident but then all sorts of problems are thrown up. Tax/NI arrears, national minimum wage, working time regs, unfair constructive dimissal - the lot. Read more at http://www.tozers.co.uk/lawhorse/

 

[amandap]

It's not just accidents. I knew a farm contractor who used only self employed workers and they had a real fight with HMRC over it. HMRC also interviewed the workers and put pressure on them. I know one older chap retired as a result.
Cheap labour really tbh and of course National Insurance often gets forgotten completely.

 

[Bigrob34]

The trick is to trade as a limited company, not as a sole trader. As a limited company, you will (generally) be the sole shareholder and director, and as a director you pay normal NI contributions not self employed class 2 (which doesn't qualify for SSP or JSA).

I'm a self employed groom, and I contract my services out to a client on a regular basis, however I base my self employed status on the fact that my client has no 'mutuality of obligation' to provide me with work, e.g if its raining, I don't come to work, and also the fact that I'm free to look for other part time work elsewhere.

A lot of employers unscrupulously force people to be 'self employed', but when it's done properly it can hold many benefits (45p per business mile back from the taxman). All that needs to happen is for grooms to be a part of a professional association, get some sound accountancy advice and make sure they don't work for an a***hole.