BPSS/SC question - Employment History

[LaHombre]

Hello - I have scanned this thread:

https://forums.contractoruk.com/busi...questions.html

....and have run some searches, I can't seem to find anything clearly aligned to a question that I have and was hoping for some help on please.

I was a Ltd co contractor from 1998 to end of 2020 - I went perm May ish 2021 - I have been PAYE on my Ltd for a long while and am thus an employee of my Ltd co, rather than self employed is my understanding, checked with my accountant.

All fine thus far - except my employer wants to put me through BPSS then SC - on a personal level its good news and gives some degree of flex if/when I return to contracting.

My question is - on the form I fill in on employment history, based on the above, do I simply put down my Ltd co details to cover the last X years preceding my current role?

Or do I put down self employed, that put down each customer and any gaps?

Plainly one is simpler than the other = I'm just not sure on the demarcation line and want to avoid pain later.


Any thoughts or experience would be gratefully received please.

[malvolio]

You are not an emloyee, you are an officer of your company. Taking a salary does not make you an employee. I hope your accountant knows that...

Otherwise your job has been Director of a limited company. Other questions will cover the necessary other details.

Don't overthink it, just consider what they are trying to assess.

[LaHombre]

Thank you for the speedy reply - I've always defaulted on things like car insurance to being Self Employed, I've changed accountants in the last month as my previous one retired, I'll have to double check with the new one that I am asking the right question based on your answer!

Ah - the joy of explaining gaps in ones working life whilst trying to find someone still there!


Thank you for the guidance.

[hobnob]

According to HMRC, self-employed = sole trader, which doesn't apply to LaHombre.

[LaHombre]

Hi - I talked this through with new accountant today, their view was on line with Malvolio, and for this application especially just go the long way around.

However they did mention a client, not sure of it was theirs, that was in 'discussions' with HMRC over their access to Covid support, and HMRC's view that they are very much employed by their Ltd Co.

Hey - there wouldn't be so many helpful people earning a good wedge helping us mere mortals through this all were it simple!

[northernladuk]

I've always defaulted on things like car insurance to being Self Employed,

I'd go back and check this if I were you. Insurance will look for any possible reason to get out of paying and they have some very funny risk bands. A director could be in a totally different risk area to self employed and will use this as an excuse to avoid a payout if they feel they need to. Gotta be whiter than white when it comes to insurance IMO.

[LaHombre]

Interesting point - I've always defaulted to self employed, Company Director.

Now I am actually employed, that's easier - but if/when I go back to contracting, how do I fill this in accurately - HMRC have me as Employed, I can understand the Officer part - but who is correct?!

[northernladuk]

Interesting point - I've always defaulted to self employed, Company Director.

Now I am actually employed, that's easier - but if/when I go back to contracting, how do I fill this in accurately - HMRC have me as Employed, I can understand the Officer part - but who is correct?!

Ring them and check. Not sure what HMRC's tax status of you has to do with insurance so I'd take that with a pinch of salt. But for me I'd be ringing them but I am pretty anal about insurance. My father had a car insurance firm in Bradford so he's seen a lot of the crap people put and how it can come back and bite them. Kinda gives you a different perspective when you hear what could happen if you do this and that.

My mate ticked yes to 5 lever lock and alarm on his house insurance cause 'they'll never know'. Makes my toes curl. Bad enough worrying about getting broken in to but how he sleeps worrying if they'll bother paying him out as well. Each to their own I guess.

[Lance]

BPSS/SC questionnaires don't give a flying fig about your employment status for HMRC/tax reasons. They want to know who you were working for over a period of time. Being self-employed, or employed by your own company will cause issues for their clearance checks so make sure they have a 3rd party to contact (agency/client manager/HR department/project manager/etc).