Workplace Pensions - anybody knowledgeable?

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neilrr

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My daughter works part time as a gymnastics coach during summer & term breaks from Uni.

The gym owners want her to register with HMRC as self employed so they do not have to make pension contributions.

She works for one gym in one location at hours set by the gym, which doesn't sound like self employment to me.

She grosses maybe £1K p.a. & is not particularly bothered by the gym owner's lack of contributions or about enrolling in the Workplace Pension there but she doesn't want to run afoul of HMRC & doesn't know if she will be excluding herself from anything else by registering as self employed.

The gym is demanding a 'unique tax reference number' (which I understand you can only get if registered as self employed) before they pay her.

What should she do?
 
The gym owner should be very very careful...the fines for what he suggests could be ruinous. Employers are not allowed to suggest (with a nod and a wink) that employees may not wish to join the workplace pension. And this is worse.

She can have no special dispensation because, as you say, you can't be self employed (except for financial advisers) and only provide services for one client such as this.
 
Tell her to ring HMRC for advice...because her "employer" does not want to provide for the workplace pension...then stand back from that fan.

Of course the really stupid thing about this is...she falls below the threshhold when it would have to be provided.
 
Thanks, I agree they are completely taking the piss, but.....

.....she isn't especially concerned about the WPP from what is, after all, just a part time job, she's just uncertain if by signing up as SE, will she be committing herself or excluding herself to anything down the road?

Is she going to make herself ineligible for certain benefits or ?????

HMRC were no help at all on the phone, telling her to just go through the online process step by step if she wanted to register as SE.
 
Employer is being naughty but she wouldn't qualify perhaps due to age and Salary level.

My concern with declaring her self employed would be the **** of doing a tax return each year. She won't tax but will have to do one all the same if declared self employed.
 
Pension contributions is only one aspect, by "employing" self employed staff the gym is evading its national insurance obligations and any other employee liability protection its should offer. If your daughter or someone in her charge had an accident, well work it out for yourself.
 
Workplace pension, the employee needs to earn over £10,000 pa http://www.workplacepensions.gov.uk/employee/employer-contribution-calculator/#results There will be no contributions so no need to register her. But if you are unsure, talk either to HMRC or a good accountant. Earning only £1000 per annum, she will also be below the threshold for tax and NI(£8060pa) She will be covered, or should be by her employers liability insurances.
 
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I would vote against registering as Self Employed with HMRC.

There is no reason for her to do that just to satisfy her employer.

If she simply says 'No thank you' the employer won't have much choice but to carry-on as it does anyway.

And the risk of actually loosing her job as result is very small.

Also, I suspect that the 'wink and a nod' here is in that the employer is hinting that she should just pocket the cash and not bother with HMRC - which means the risk of being found out is all hers.
 
Workplace pension, the employee needs to earn over £10,000 pa Workplace Pensions | calculator & guide for employees | Don't ignore it | GOV.UK There will be no contributions so no need to register her. But if you are unsure, talk either to HMRC or a good accountant. Earning only £1000 per annum, she will also be below the threshold for tax and NI(£8060pa) She will be covered, or should be by her employers liability insurances.

National insurance is different from tax. You could pay NI because you earn a lot in one week.
 
Employment v self employment is a question of fact, not a choice. She could punch her details into the HMRC employment status indicator https://www.gov.uk/guidance/employment-status-indicator and then show the output to her employer (not pre judging the outcome at all there!).
 

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