Contractor or officer

Question

I understood that a Council had to employ an officer, as the officer could not be self employed. How does this reflect where a Council has an individual acting as the officer but through a contract as a self employed person in circumstances perhaps as a locum or stop gap

Answer 1

It comes down to whether it is disguised employment, it is clear that a locum is a contractor and HMRC would see that, however, they would not accept a full time self employed person being the clerk.

Answer 2

Eak! This is legal but not best practice. Out of curiosity is this being done because the Clerk is working very few hours and therefore the council doesn't want to pay the oncosts (tax/pension) etc? If so this is not good enough reason to hire a contractor as the Clerk. This gives very little security for either the Clerk or the Council.

In relation to performance management, it also creates a huge warren of potential problems given the large legal responsibility and remit of a Clerk's position. If this is a temporary thing whilst an employed Clerk is being recruited then it should be OK short term, but not something which should occur long term.

Answer 3

The clerk cannot be self employed. That is a definitive ruling from HMRC. Please refer to this question and answer.

If the issue is about another officer, then as others have indicated, it is down to HMRC rules. You can find the HMRC guidance here.