Advice on working arrangement (freelancer vs employee)

[dscross]

I've been offered a 3 day a week job to supplement my freelancing. My new employer wants to do it on a freelance basis, so I'd invoice him monthly while I work 3 days a week and get part-time holiday entitlement as an actual employee would.

My question is, should I say I want to be an employee rather than a freelancer for him, bearing in mind ill be supplementing my income with freelancing work anyway.

Thanks for your help.

 

[Catnip1024]

Depends. As freelance you'd lose out on any National Insurance / Pension contributions, but if the cash makes it worth it, it's possibly still worth it. For the same money though, I would always take being a proper employee over freelance, as you have more rights and a more firm income.

Although there is the question that, if you are doing similar freelancing work to this work, as an employee there may be contractual terms preventing you doing the extra. I know I can't do any work for competitors, for instance.

 

[EvilRoy]

It really depends on your employment contract. If he's only offering holiday pay (I assume you mean statutory plus vaycay) all you really gain is whatever local law provided protections for part timers there are. I'm guessing he wants to do this because hiring you for real is more expensive for him - he would have to make various contributions and insurance payments on your behalf if you were an actual employee (depending on local law). If he was to hire you he would probably drop your rate in proportion to the money he would have to drop on that.

The question becomes, are the extra benefits you will gain worth the loss in income? For instance if he is taking part of your normal fee to pay health insurance fees he is obligated to upkeep and you already have a good personal plan as part of your freelancing, you aren't gaining much.

 

[Baffle]

As freelance you'd lose out on any National Insurance / Pension contributions

Self-employed make Class 2 NI contributions for entitlement to the state pension; it's about ?3 a week. They do lose on workplace contributions to pensions though.