Self-employed
If you work for someone else, it is important to know whether you are working for that person in an employed or in a self-employed capacity. If you are already registered with the Inland revenue as self-employed, it is likely that you will continue on this basis, however, every locum position you accept will be different and thus will be accessed on its own merits. It is possible to be considered employed at one position, but self-employed at another. Just because you claim to be self-employed in one position, does not automatically entitle you to be classified as self-employed at future positions.
According to the Inland Revenue:
To qualify as self-employed you must be able to answer ‘yes’ to the following questions:
* Can they hire someone to do the work or engage helpers at their own expense? Self employed individuals must have the right to substitute themselves.
* Do they risk their own money? (Is your annual income guaranteed?)
* Are they responsible for their losses as well as the profits?
* Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves? As veterinary consultants this would be knowledge and skills. Equipment may include stethoscopes, reference books, protective clothing etc...
* Do they agree to do a job for a fixed price regardless of how long the job may take? I.E a fixed daily rate.
* Can they decide what work to do, how and when to do the work and where to provide the services? Consultants work within the practice hours and are in ultimate control of their treatment decisions. Also, they can decide which practices they work at, and when their positions commence and end.
* Do they regularly work for a number of different practices? Often the case for locums.
* Do they have to correct unsatisfactory work in their own time and at their own expense?
If you have answered yes to the above questions, that would qualify you as self-employed.
Advantages
Advantages to being self-employed is that you can claim compensation to some extent for your expenses.You will pay tax and National Insurance directly to the Inland Revenue under the self-assessment system, which must be followed carefully to avoid penalties and interest arising. It is most probably the most beneficial method of working if you are planning on locuming for only a short period of time.
Disadvantages
The main disadvantage is that some practices will not offer positions to self-employed locums due to the possible tax implications it may have to the practice, so going self-employed is not always the answer!
Should you want to register and run yourself as’ self-employed’, It is advisable that you contact an accountant to discuss this, as it can be a complicated process.
Also, there must be a lack of mutuality of obligation stated in writing as part of your terms of cover.This means that you as locum are not obliged to take the work, and similarly, you can be asked to go at any time.( ie- there is no fixed contract).This is not a criteria highlighted by the inland revenue, but is one of the basic principles of case law relating to self employement status.
Note: very important- when ever you accept a locum position and wish to invoice the practice as a self-employed locum, you must supply the practice with a contract for services. This will set out the terms under which you are working. This will help clarify your position as a self-employed individual should the Inland revenue question your status. In addition, providing the practice with your Inland revenue self employed number is recommended.
Please Note: the above information serves to supply a general overview only.The information here has been aquired from the Inland revenue.
It is strongly recommended that you seek further advice from the Inland revenue or a qualified accountant.
Further information can be obtained from the following:
You can call the IR Helpline for the Newly Self-Employed on 0845 9154 515
