Contracters

dahamsta

I know there's a limit on how long someone can contract to a company without being an employee, but I don't know the details. Would I get away with employing someone as a contractor for a year I wonder?

adam

Nuttzz

yep, i had a uk contractor for 3 years, its getting away with it, she paid her own paye and NI (prsi)

Eoin

dahamsta wrote: »

I know there's a limit on how long someone can contract to a company without being an employee, but I don't know the details. Would I get away with employing someone as a contractor for a year I wonder?

adam

I think that applies to people who are hired by the company on a temporary contract, rather than being self employed and contracting their services to the company.

Ideo

dahamsta wrote: »

I know there's a limit on how long someone can contract to a company without being an employee, but I don't know the details. Would I get away with employing someone as a contractor for a year I wonder?

adam

I don't see why not. Surely many many companies have a contract FOR services with an independent contractor, leaving the contractor liable for his own tax & insurance.

dahamsta

They do, but if they contract for a certain period of time the state views it as a tax dodge and starts asking questions.

Ideo

dahamsta wrote: »

They do, but if they contract for a certain period of time the state views it as a tax dodge and starts asking questions.

I don't think its the leangth of the contract per se, but whether the contract is in reaility an employment contract by applying the 4 employment tests.

Control test - can the 'employer' tell teh contractor how to do his job. If so, then its employment
Integration test - is the work done is an integral part of the business? if so, then employment and not contract.
Economic reality test- is the contractor at financial risk? if no, then its likely to be employment
Entrepreneurial test - looks at whether the worker has engaged him/herself to perform the services performing them as a person in business on his/her own account? No? Employment!

And the ability to delegate the performance of a contract. If you can't drop the contractor then its likely to be an employment contract.

I dont claim to be a law student so you will prob get a better response in the law forum. They may have examples of precedent. This might be of use but dont come on telling me I'm wrong if I am, it's paraphrased!

dahamsta

Very useful information there Ideo, thanks.

Ideo

dahamsta wrote: »

Very useful information there Ideo, thanks.

No probs. In addition I dont think a court could rely on only one test, but 2 or 3 would need apply.