Employed or Self-Employed... that is the question

[mad_jock]

yes it does make life simpler. But you know what flying schools are like with computers.

I just made a spread sheet up and you stuck in the amount that was taxable pay and it spat all the numbers out. Cheques were then written. And the columns all tallyed with the big sheet.

I can see the percieved advantage to the instructor if its a part time second job. But with some creative managment you can offset alot that you wouldn't normally dream of getting through as expenses. Usually getting the VAT back as well the tax.

Now the horrible little grunts of hour building FI's. Its a nightmare for them. They will incure breaks in their NI contributions resulting in years of stupid letters wanting them to pay extra into the state. If they are ill its a swine getting sick benefit. All the other benifits are a pain virtually impossible to get low income benifits like housing support etc. Your services can be terminated at a whim with no come back. And you won't be able to sign on afterwards for a reasonably long period. Your ability to claim back proffesional expenses is a pain you have to to do a tax return every year.

Where as PAYE. Between you and your employer you sort out paying for the license and medicals before tax and without paying VAT or NI. You have full access to the state benefit system. And you don't do a tax return every year.

MJ

To be honest I think the real reason why the IR won't go for cases is becuase the amounts of money are not cost effective to chase. A FI on under 12k a year is not alot in the grand scale of things. As long as both partys want it no problem. I have always worked PAYE for flying schools. And that was even when working part time. And to be honest I would put a complaint into the IR if I got knocked back because I refused to be payed self employed.