Who To Report To?

[Maydup]

A business I use insists on their skilled staff being self employed yet they also insist on them signing a contract to say they won't carry out the same trade for anyone else. 
That doesn't feel like being self employed to me, and to make matters worse, these skilled staff have recently had their hours cut drastically and many are struggling to make ends meet. 
I feel like reporting this business as they just can't have it all ways can they? Would HMRC be the place to go to help free them up to be properly self employed?

[barry1010]

Yes, the HMRC consider them to be disguised employees and it is very much frowned upon.

 

[naomi24]

How do you know the terms they work under - and why do they do it if they're not happy?

[barry1010]

Tax evasion is a good reason to do it. 

[naomi24]

If they're self-employed they'll be paying their own tax - and National Insurance.

[Old_Geezer]

If self employed and accept those terms then presumably they're happy with them. Although why they have gone "self employed" isn't clear. Must be tax advantages for them I'd guess.

[Maydup]

Not sure why I need to expand but here's more for Naomi. 

I was there last week and they were explaining the set up to me. As people do when they are disgruntled, they tell everyone but don't have the courage to report the business as it's their livelihood.
They are qualified but work in their field is not abundant, however they won't continue to do it if the availability of work reduces much more. 
There are a few other reasons why they do it such as location, team spirit etc. 

[Maydup]

To clarify, the business only offers work on a self employed basis at rates set by the business. It was probably OK when they all started but now the work is reducing and they would be in breach of contract if they worked elsewhere in their field, they are disgruntled. 
 

[barry1010]

Yes, they do pay tax and insurance, Naomi, on what the declare. That isn't always a true reflection of their income

[naomi24]

Thank you Maydup.  If they're not doing anything about it because it's their livelihood, why would they expect you to do something about it?   That doesn't make sense to me. 

[naomi24]

I know that Barry.

[ladybirder]

Would talking to Citizens Advice help?

[Maydup]

Found what I needed thanks. I just wanted to check that it is HMRC to report them to.

How do I report a company to HMRC anonymously?

Fill in the online form to tell HMRC what you know about the person or business. It helps if you share your name, location and contact details. HMRC can then contact you if they need more information. You do not have to give your personal details.

[Canary42]

HMRC are far more likely to act detrimentally towards the employees than the firm. I'm sure they'll thank you for that.

[Toorak]

I agree with Naomi and canary - I would leave well alone

[Maydup]

What can happen to the employees? They do the work, pay their taxes, have their own insurances; they're really pi55ed off at the way they are being treated through the restrictions on who or where they work.
It's the business that's in the wrong. 

[Toorak]

If they are concerned about their contractual conditions they should ideally seek advice from a solicitor who specialises in employment law, but that can be a very expensive route to go down.

[naomi24]

But the workers are the people who choose to work there.  Why is that your business?

[ladybirder]

But Citizens Advice wouldn't be expensive.

[ToraToraTora]

HMRC would not help they'd just slap them with IR35.

[Toorak]

I agree, LB, that Citizens' Advice could be a starting point but they may not have the specialist knowledge in employment law required