self employment

[strada]

Hi guys,i called in to the jobcentre today for some info on going self employed.
What a waste of time all they could tell me is i need to register for tax purposes,
ive been on sick for 2 month with a dicky ticker,i had a op 2 wk ago.
A mate offered me some work but its only 2/3 days a wk to start,all i wanted to know off them is can i work self employed doing between 16 to 30 hrs.
ive got untill Monday to decide if its worth it, or beg for jobseekers again

 

[cumbriasteve]

Self employment and a dicky ticker may not be the best of companions, especially during what can be the stressful 'start up' time of any business.

However, regarding tax and self employment, HMRC run some free courses which are really worth attending, lot's of good advice.

Good luck if you decide to give it a go.

 

[Paul.]

You can register on line, https://online.hmrc.gov.uk/registration/newbusiness/introduction
you have 3 months after starting in business to register, but better to do it sooner rather than later.

You will have to pay class 2 national insurance of £2.70 per week, but paid monthly, and will need to set up a direct debit for it, If you are going to earn less than £5725 as a self employed person in this tax year you may be able to get an exemption.
Eventually you will have to fill in a self assessment form, and keep records to justify what you put on it.
Once registered you will be issued with a unique tax reference (UTR), and as Steve says the HMRC workshops are well worth attending.

 

[strada]

2 redundancy's and out of work is stressful too
The welding work around here has been swamped with eastern European carpet fitters and farmers pretending to be welders,maybe i should speak with an accent when i go looking,i might at least get an interview.

 

[strada]

Thanks Paul, sounds simple enough.
im not actually starting a buisness, but doing working for someone else,when i register do i just register my name ?

 

[Justme]

Thanks Paul, sounds simple enough.
im not actually starting a buisness, but doing working for someone else,when i register do i just register my name ?

So you will be an employee then not self employed.

 

[Paul.]

Thanks Paul, sounds simple enough.
im not actually starting a buisness, but doing working for someone else,when i register do i just register my name ?

In that case then you may wish to read through this page before you decide what to do http://www.hmrc.gov.uk/payerti/employee-starting/status.htm

HMRC have pretty strict rules about employment status,

 

[cumbriasteve]

Thanks Paul, sounds simple enough.
im not actually starting a buisness, but doing working for someone else,when i register do i just register my name ?

Deleted my reply because I had misread your comment, will leave it to Pauls good advice.

 

[Premiershipman]

I just had to do all this as the misses and I run a home craft type business and attend craft shows etc.

Basically as others have said, you need to fill in the self employment forms, and if you are earning under the threshold, you can apply for an NI exemption certificate to avoid paying the £2.70 a week for the NI.

Oops, well my advice is more for running your own business, but I wold think the NI payment levels are still the same if you are classed as an employee.

Shady

 

[feen]

You will get on fine as a sub-contractor working for whoever. Strictly speaking you need to meet certain criteria but it's not difficult. More info on the HMRC as above.

All the best

 

[strada]

So you will be an employee then not self employed

just read pauls link too.
Looks like a no go then,my mates a one man band,i don't think he will want to get involved with PAYE .
Thanks for clearing that up

 

[Malvern]

Hope you're well on the way to recovery and you sort your work situation out soon.

 

[strada]

Thanks, im over the worst.

 

[blenkie1]

If you are going self-employed you mate does not get involved with your PAYE. You bill him for work done and pay your wage from this. If you start up as a bussiness the goverment also pays some of your wage £66 a week for the first 3 months and £33 a week for the next 3 months. Job centre should be able to tell you.

 

[tlovatt]

You can do this easily through 2 different methods

1. use an umbrella company - you work, tell them the hours, they raise an invoice and pay you minus the PAYE etc, nothing lese for you to ake care of

2. set up a limited company, has some tax advantages, but costs more to run (£125 per month plus VAT) but again an accountant company will run everything for you and you pay less NI

For a reputable company that I know a lot of people that use, have a look at www.Brookson.co.uk - you can give them a ring and they will talk you through everything and make sure you would not get hit by HMRC. Avoid some of the other companies that will offer you greater tax savings and HSMR will be interested.

 

[MattF]

If you are going self-employed you mate does not get involved with your PAYE. You bill him for work done and pay your wage from this.

Wot he said. There's no reason you can't go self employed and just bill him for services rendered.

 

[strada]

Wot he said. There's no reason you can't go self employed and just bill him for services rendered.

so i just give him an invoice for my wages ? i.e hours worked etc...
will this class me as self employed even though he is in charge,supplying materials,tools etc...

 

[MattF]

so i just give him an invoice for my wages ? i.e hours worked etc...
will this class me as self employed even though he is in charge,supplying materials,tools etc...

Yes. That doesn't class you as self-employed, btw. You have to register as self employed and for N.I purposes, as mentioned above.

What you are charging for is irrelevant. You can charge for goods, services, time etc. The main thing with being self employed is that you are responsible for your own book-keeping, taxes and national insurance. Provided it's legal and you pay your dues to them, the Inland Revenue honestly couldn't give a monkeys how you earn the money.

 

[ajlelectronics]

That will class you as an employee. To be legitimately self employed, you must be available and carry out work for others. The simplest way to deal with it is for you to bill his customers and pay the value into your own bank account. Therefore you are working for all and sundry. Then he bills you for materials, which co-incidentally tends to balance out at the wage you were expecting.

 

[MattF]

That will class you as an employee. To be legitimately self employed, you must be available and carry out work for others. The simplest way to deal with it is for you to bill his customers and pay the value into your own bank account. Therefore you are working for all and sundry. Then he bills you for materials, which co-incidentally tends to balance out at the wage you were expecting.

I've altered my post above to be more specific, but that is incorrect. There is no need to bill anyone other than his acquaintance for anything other than labour. Self employed status is totally detached from how he conducts & runs his business.