Yes there are a number of schools I expect where FI(R)s may be working on self employed basis, does not mean this is legal or correct.
It is employers attempting to cut costs and avoiding having to give employees the usual rainge of benefits, plus it cuts down on administration costs.
The inland revenue have not the time or resource to assess every single self employed/independent contractor for compliance with rules, it is up to the individual to comply, due to this, several employers and employees can get away with bending the rules. However when I worked in the Engineering sector once in a while a contractor would be audited for compliance to IR35. If deemed not to comply some of these contractors would face back tax bills of up to £30-60,000 (obviously Eng contractors earned more than instructors so these amounts of back tax could amount in about 5 years).
Chances are you won't get audited but if you do it will be you who will face the consequences, not the company employing your services.
There are reasons why Ryanair put all pilots on the Brookfields contract, because it saves the company a reasonble amount of money having few, Irish employment seems to allow this ( I have no idea how Irish tax laws work) but in under the UK rules they would all be deemed "disguised" employees.
It is true that there are not many salaried positions around for instructors, however the majority of instructors I know on flight pay only arrangements (was one myself until very recently, I was paid a combination of retainer and flight pay) were still employed and paid tax via the PAYE system.
Last edited by portsharbourflyer; 5th Mar 2008 at 12:12.