Got to become a limited company and need help choosing a company name.

[sparkeh]

Just out of interest, can an LA actually tell schools something like that is mandatory? As @plexer said there are loads of self employed people in schools and this could be a nightmare.

 

Or is it more of a "Do this or we won't cover your back if something goes wrong" kind of thing?

[edutech4schools]

This seems to have come about due to a few reasons.

 

The government has guidance for the LEA based around what legally is meant by sole trader. The issue is that if you work in the same school or schools at the same time each week and do this that and the other for the school you are not legally a sole trader but work for the school or schools and should be classed as employed by the school. If you can show you work outside education, do not work on a fixed schedule etc you are OK to be a sole trader.

 

This then causes a few issues around TAX and NI. What has apparently happened (although I think this is more hypothetical) is someone who was self employed and worked for a school on a regular bases found out they could refuse to pay their TAX an NI and simply make out they were employed by a school. The TAX office then worked out that the person should be classed as employed by the school and not only billed the school for that years TAX but because he had always worked on the same days at the same place they wanted other expenditures.

 

I had a chat with my accountant when all this started and this is a real issue / loophole.

 

Did you know all schools should be filling in a sole trader form for anyone self employed? Most schools do not even know they should be doing this. The government does have guidance that the LEA should follow about working with sole traders and even the Government makes it clear in the sole trader form that schools are not to use self employed people if they work at the same times etc etc etc.

 

Although I could show I do not only work for the schools, I decided I would not fight this one.

 

It is totally up to each LA how they interpret the Governments Sole trader forms but my LA have decided to take this to an extreme and 100% cover themselves.

 

Or is it more of a "Do this or we won't cover your back if something goes wrong" kind of thing?

That's basically what the schools have been told.

Edited February 10, 2015 by edutech4schools

[plexer]

That's cleared it up

 

Ben

[synaesthesia]

Maybe Edugeek should branch out, acting as an umbrella company for techs across the country. Who wouldn't want to be supported by Edugeek?

[Ephelyon]

Something similar to that has been discussed, but the issue of vicarious liability then comes up and becomes a huge minefield...