Being 'self employed' question please xx

29 replies
Found 10th Nov 2009
I got a job as a home carer last week but the company said I am 'self employed'. I don't really know what this means ...... well, I mean, I don't really know what that entails....What do I have to do if I am self employed?? Do I have to inform someone?? I also got a small job the other week cleaning an office which goes through the books but other than that I've not been employed for over 6 years.

Can anyone give me some ideas please. thanks in advance xxx

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I've been self-employed for over 12 yrs babe xx

You need to pay your own national insurance contributions ( currently £30summin quid every 3 months, not a huge amount ) and do your own taxes xxx

Keep a note of the date you begin work this can be the beginning of your yearly "books" and work the first as a partial year up to april and then do your books from april5th to april 6th each yr......... or let an accountant do it for you xxx

I always do my own... it's not difficult xx

If you've not been self employed before you'll have to register as self employed

hmrc.gov.uk/sel…htm

Can be done online, over the phone or by post :thumbsup:

The first question to ask yourself is are you really self-employed? Do you have to work when they tell you, are you obliged to work a certain number of hours each week on set days etc, or if you have other plans can you say no you can't make it that day? Also, is it continuous employment for certain number of weeks. If you're obliged to work certain hours and can't say no then you are employed and need to work on their "books". If you're not obliged than you are self employed as such. The tax law here is very wish washy and if you're not certain contact the inland revenue. If you decided you're self employed you need to inform the IR so that they can send you out a self assessment every year. You need to tell them you're employed as well. Make sure for your self assessment to keep all bank statements which show interest being paid; keep you're P60 from the end of year cleaning. Also if you're carer job is self employed keep any receipts for purchases that you need to make as you can set them off against your income. Hope this makes sense!!

Hannah, what does your contract state ?

ConfusedSue;6843337

The first question to ask yourself is are you really self-employed? Do … The first question to ask yourself is are you really self-employed? Do you have to work when they tell you, are you obliged to work a certain number of hours each week on set days etc, or if you have other plans can you say no you can't make it that day? Also, is it continuous employment for certain number of weeks. If you're obliged to work certain hours and can't say no then you are employed and need to work on their "books". If you're not obliged than you are self employed as such. The tax law here is very wish washy and if you're not certain contact the inland revenue. If you decided you're self employed you need to inform the IR so that they can send you out a self assessment every year. You need to tell them you're employed as well. Make sure for your self assessment to keep all bank statements which show interest being paid; keep you're P60 from the end of year cleaning. Also if you're carer job is self employed keep any receipts for purchases that you need to make as you can set them off against your income. Hope this makes sense!!



Agreed - keep an envelope for each month & pop in any expenses receipts - phone bill, petrol etc etc - it's so much easier when coming to do your Tax Return when you have everything separated into months

Original Poster

OMG!! Thanks for all your replies guys......it all sounds so complicated tho:-(
Yh, I can work when I want basically....they phone me and ask when I'm free and I tell them....and if I can't work then I don't have to.
So did u say I have to keep my bank statements showing what money/wage has gone in? and also petrol reciepts etc... because obviously not all the petrol will be used for work. I'm well confused :-( Sorry guys, crap at this stuff

Original Poster

choc1969;6843344

Hannah, what does your contract state ?



In what way hun?

hannah19790;6843466

OMG!! Thanks for all your replies guys......it all sounds so complicated … OMG!! Thanks for all your replies guys......it all sounds so complicated tho:-(Yh, I can work when I want basically....they phone me and ask when I'm free and I tell them....and if I can't work then I don't have to. So did u say I have to keep my bank statements showing what money/wage has gone in? and also petrol reciepts etc... because obviously not all the petrol will be used for work. I'm well confused :-( Sorry guys, crap at this stuff



as you do it it becomes clearer.

Phone up the IR...

You can telephone the Newly Self-employed Helpline on 0845 915 4515

Thats your first step.

Next buy a big A4 file and put in your bank statements and any receipts that you get from anything to do with work, such as petrol etc.

You'll get a self assessment pack through in March time from the IR.

It's not as scary as it sounds babe honest xxx

Go visit your local tax office a soon as you can, Being self employed can be more complicated than people think and is often just used by employers as a way of avoiding Tax andNI and also emloyment rights, You will have to start paying you own national insurance and keeps records of everything you spend but the good news is you will be able to claim back expenses,

hannah19790;6843466

OMG!! Thanks for all your replies guys......it all sounds so complicated … OMG!! Thanks for all your replies guys......it all sounds so complicated tho:-(Yh, I can work when I want basically....they phone me and ask when I'm free and I tell them....and if I can't work then I don't have to. So did u say I have to keep my bank statements showing what money/wage has gone in? and also petrol reciepts etc... because obviously not all the petrol will be used for work. I'm well confused :-( Sorry guys, crap at this stuff



It's honestly not as complicated as it sounds! I remember doing my 1st return and I'd left it all to the last minute, the form online is pretty straight forward. If I can do it anyone can!

As for the receipts just keep a hold of everything for now - you can then use a few receipts when you finally do your return which class as your expenses and you don't get taxed on them.

Are the company paying you monthly/weekly etc? Then yes, just keep a copy of a statement showing it going in your bank.

Keep everything together for each month - it just can't be any easier honestly. Then you have all the info ready to complete the form online & the best bit is - the calculator at the end works out how much tax you need to pay or how much of a refund you're due :thumbsup:

Phone or go and see your Tax Inspector, ask for his help in this matter, he will agree how much you can claim back per mile for journeys made in your car for work but he will also tell you what you can claim for and what you can't.
If you have the right attitude your Tax Inspector will help you.
Once you know what he will allow you to claim for the accounts are easy.

Original Poster

ClarityofMind;6843503

as you do it it becomes clearer. Phone up the IR... You can telephone the … as you do it it becomes clearer. Phone up the IR... You can telephone the Newly Self-employed Helpline on 0845 915 4515Thats your first step.Next buy a big A4 file and put in your bank statements and any receipts that you get from anything to do with work, such as petrol etc.You'll get a self assessment pack through in March time from the IR. It's not as scary as it sounds babe honest xxx



tonyg1962;6843512

Go visit your local tax office a soon as you can, Being self employed can … Go visit your local tax office a soon as you can, Being self employed can be more complicated than people think and is often just used by employers as a way of avoiding Tax andNI and also emloyment rights, You will have to start paying you own national insurance and keeps records of everything you spend but the good news is you will be able to claim back expenses,



Thanks guys....will give them a ring in a minute...really appreciate ur help;-) xx

xsazzyjayx;6843517

It's honestly not as complicated as it sounds! I remember doing my 1st … It's honestly not as complicated as it sounds! I remember doing my 1st return and I'd left it all to the last minute, the form online is pretty straight forward. If I can do it anyone can!As for the receipts just keep a hold of everything for now - you can then use a few receipts when you finally do your return which class as your expenses and you don't get taxed on them.Are the company paying you monthly/weekly etc? Then yes, just keep a copy of a statement showing it going in your bank.Keep everything together for each month - it just can't be any easier honestly. Then you have all the info ready to complete the form online & the best bit is - the calculator at the end works out how much tax you need to pay or how much of a refund you're due :thumbsup:



Thanks hun.....So should I keeps some money aside each time I'm paid too so I can pay it back?

hannah19790;6843582

Thanks guys....will give them a ring in a minute...really appreciate ur … Thanks guys....will give them a ring in a minute...really appreciate ur help;-) xxThanks hun.....So should I keeps some money aside each time I'm paid too so I can pay it back?



Sorry I don't understand, pay what back? Your National Insurance contributions are paid every 3 months which are about £30 (mine are less at the moment with being on Maternity Leave).

If you just give them a ring, you'll be wondering what you were worrying about:-D


Ohhhh if you mean your tax....will you be working enough hours between both jobs to go over your earnings allowance before you're taxed?

hannah19790;6843582

Thanks guys....will give them a ring in a minute...really appreciate ur … Thanks guys....will give them a ring in a minute...really appreciate ur help;-) xxThanks hun.....So should I keeps some money aside each time I'm paid too so I can pay it back?



Unless you make more than your tax allowance you wont be paying them anything anyway hun xxx

Best bet would be to start a Ltd company and employ yourself as the director.

You will pay less tax and you would be exempt from National Insurance totally.

Your employer then pays your company and your company pays yourself.

Original Poster

The Fox;6843570

Phone or go and see your Tax Inspector, ask for his help in this matter, … Phone or go and see your Tax Inspector, ask for his help in this matter, he will agree how much you can claim back per mile for journeys made in your car for work but he will also tell you what you can claim for and what you can't.If you have the right attitude your Tax Inspector will help you.Once you know what he will allow you to claim for the accounts are easy.



Thanks for that hun, gonna do it now:thumbsup:

Original Poster

xsazzyjayx;6843615

Sorry I don't understand, pay what back? Your National Insurance … Sorry I don't understand, pay what back? Your National Insurance contributions are paid every 3 months which are about £30 (mine are less at the moment with being on Maternity Leave).If you just give them a ring, you'll be wondering what you were worrying about:-DOhhhh if you mean your tax....will you be working enough hours between both jobs to go over your earnings allowance before you're taxed?



ClarityofMind;6843624

Unless you make more than your tax allowance you wont be paying them … Unless you make more than your tax allowance you wont be paying them anything anyway hun xxx



Ahh well I don't know yet...not sure how much I'm allowed and how many hours I'm gonna work yet. I'll see what the tax man says then and find out:thumbsup:

Original Poster

chester123;6843654

Best bet would be to start a Ltd company and employ yourself as the … Best bet would be to start a Ltd company and employ yourself as the director.You will pay less tax and you would be exempt from National Insurance totally.Your employer then pays your company and your company pays yourself.



Really??? Is that simple or complicated??

hannah19790;6843698

Really??? Is that simple or complicated??



Incredibly simple.

Worth it's wait in gold as you would pay much less tax.

chester123;6843654

Best bet would be to start a Ltd company and employ yourself as the … Best bet would be to start a Ltd company and employ yourself as the director.You will pay less tax and you would be exempt from National Insurance totally.Your employer then pays your company and your company pays yourself.



Not sure about this - you would then pay corporation tax at 21% current for small companies on all profits. You would also have to do PAYE returns in the company quarterly for the salary you're taking as a director. You will still have to pay Class 4 National Insurance contributions voluntarily if you wanted to keep you state pension contributions up to date.

If you're earning under the yearly allowance of £6,475 this would all be tax free anyway, on a single person's allowance. After that the next £2,440 is taxable at 10% and then £34,959 at 20%.
Def keep money aside if you spend it easily!! Don't panic, nothing to it once the first return is done.

You will probably find yourself no-longer employed by this company when HMCR start looking into why the care home has so many 'self employed' people on it's books.

What a scam - so do you have to invoice the care home for your pay each month then?

Original Poster

chester123;6843884

Incredibly simple.Worth it's wait in gold as you would pay much less tax.



ConfusedSue;6844153

Not sure about this - you would then pay corporation tax at 21% current … Not sure about this - you would then pay corporation tax at 21% current for small companies on all profits. You would also have to do PAYE returns in the company quarterly for the salary you're taking as a director. You will still have to pay Class 4 National Insurance contributions voluntarily if you wanted to keep you state pension contributions up to date.If you're earning under the yearly allowance of £6,475 this would all be tax free anyway, on a single person's allowance. After that the next £2,440 is taxable at 10% and then £34,959 at 20%. Def keep money aside if you spend it easily!! Don't panic, nothing to it once the first return is done.



Think I'll leave that bit...think I'd need to know what I was doing lol

DAMNOME;6844228

You will probably find yourself no-longer employed by this company when … You will probably find yourself no-longer employed by this company when HMCR start looking into why the care home has so many 'self employed' people on it's books.What a scam - so do you have to invoice the care home for your pay each month then?



Is it wrong then? I mean ethicaly?? I don't have a clue u see!
No, they just send me a time sheet each month I believe:?

ConfusedSue;6844153

Not sure about this - you would then pay corporation tax at 21% current … Not sure about this - you would then pay corporation tax at 21% current for small companies on all profits. You would also have to do PAYE returns in the company quarterly for the salary you're taking as a director. You will still have to pay Class 4 National Insurance contributions voluntarily if you wanted to keep you state pension contributions up to date.If you're earning under the yearly allowance of £6,475 this would all be tax free anyway, on a single person's allowance. After that the next £2,440 is taxable at 10% and then £34,959 at 20%. Def keep money aside if you spend it easily!! Don't panic, nothing to it once the first return is done.



If you take all the money out as divs you would not have to do anything PAYE.

DAMNOME;6844228

You will probably find yourself no-longer employed by this company when … You will probably find yourself no-longer employed by this company when HMCR start looking into why the care home has so many 'self employed' people on it's books.What a scam - so do you have to invoice the care home for your pay each month then?



How is being self employed a scam?

chester123;6844979

If you take all the money out as divs you would not have to do anything … If you take all the money out as divs you would not have to do anything PAYE.



Why would you want to do this? Surely it is better to receive the £6k salary and reduce your dividend accordingly. Operating a PAYE scheme would be cheap as you'd only run the payroll in month 12.

If you operate as a limited company there is more resposibility to determine if you are actually an employee or not.

Original Poster

chri1143;6845166

If you operate as a limited company there is more resposibility to … If you operate as a limited company there is more resposibility to determine if you are actually an employee or not.



Thanks for this, don't think I'll bother tho....just want to do what I have to do...anything else confusses me lol

chester123;6844979

If you take all the money out as divs you would not have to do anything … If you take all the money out as divs you would not have to do anything PAYE.



You could, but the company would still have to pay the tax over and do a CT61, this is also a current loophole that the Inland Revenue are looking to close and are scrutinising!!!

ConfusedSue;6845702

You could, but the company would still have to pay the tax over and do a … You could, but the company would still have to pay the tax over and do a CT61, this is also a current loophole that the Inland Revenue are looking to close and are scrutinising!!!



They have been scrutinising it for over a decade!! They are worried about changing it as so many people are using it.
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