Driving Instructor

T.C.
T.C. Registered, Tutor Posts: 1,448
Complicated question here:
I have a driving instructor client who would like to take on a sub-contract driving instructor. My client would provide the car and the pupils and the subbie would provide his own fuel and pay my client a percentage of the instruction fees. My client would like this to be a sub-contract arrangement with the subbie being self-employed. Are there are rules on this or does anyone else know how this is usually done? Help and advice appreciated.
:001_unsure:

Comments

  • jilt
    jilt Registered Posts: 2,903
    Hi TC, I have a driving instructor client who sub contracts work to SE subbies. They pay her a percentage of the fees received but they provide their own cars and all running costs.

    I can't think of any reason why your client can't provide the cars and include them in her balance sheet as long as the subby doesn't try to include the car in his/her own accounts and claim capital allowances, but I may be corrected by someone with more experience.

    Probably not much help really :huh:
  • imeldabye
    imeldabye Registered Posts: 147 ? ? ?
    Perhaps the only issue might be if the self-employed subbie worked solely for your client- in which case you might argue the self-employed status? However if the subbie does it for a number of instructors then I can't see anything wrong with it?
  • groundy
    groundy Registered Posts: 495
    imeldabye wrote: »
    Perhaps the only issue might be if the self-employed subbie worked solely for your client- in which case you might argue the self-employed status? However if the subbie does it for a number of instructors then I can't see anything wrong with it?

    The fact that they only work for one person is not the issue in determining self employed status, neither does working for more than one person determine you are self employed. Each contract must be assessed on its own merits. The onus is on the driving instructor to ensure the sub contract is a legitamate self employed. The most important ways of doing this are:

    Mutuality of Obligation: Is A obliged to provide B work is B obliged to accept work - If yes employed
    Substitution : Is A happy for B to send C in his place (B invoices A, C invoices B) - If no employed
    Control : Does A have control over how B works - If yes employed
    Ability to make a loss : Is it possible for B to make a loss - If yes (leans towards self employed)

    If you fail any of the above tests then you are employed and not self employed
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Thank you. I will digest those comments and have a chat with my client.
  • anniem
    anniem Registered Posts: 1,326
    I think I'd also be inclined to check the situation with the insurance company for the vehicle involved.
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
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