| Archive for Downsizer For an ethical approach to consumption |
| greenboots |
taxcan any one out there give me some advise on how much tax will have to pay, if i go self employed. |
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| Penny Outskirts |
Have you looked at the business link website? they have a lot of really excellent guides for people starting out. What are you hoping to do 
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| RichardW |
Depends how much you make in profits
need figures to help further. Like most things seek profesional PAID FOR advice Things to remember you have to pay class 2 & 4 NAT INS but can claim exemption if earning lower than about £4.5k You still get your personal allowances You can claim lots of stuff as legit biss use If you go VAT you can claim for stuff already in stock / purchased upto 6 years before you go VAT registerd. Justme |
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| greenboots |
labouring for a landscaper, will look on business link, just been looking on one site ended up going round in circles. | ||||||
| Penny Outskirts |
Business Link are excellent. So are HM Customs and Revenue. They will give you lots of free advice. | ||||||
| Penny Outskirts |
Do check you are really self employed though. There are quite strict rules about it. Make sure the person you are working for is not just trying to avoid paying NI for you etc... |
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| RichardW |
If you are only working for one contractor you are not self employed.
Justme |
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| lottie |
Not sure that's strictly true. My o.h. retired last summer but his old firm wanted him to do odd bits of consultancy work for them---he went on a one day course the inland revenue run for free and is now classed as self employed,paying correct stamp etc and knowing what allowances he can claim---but he only does work for one firm. |
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| Rob R |
I believe Nick is self employed but he only works for one company AFAIK (well until HMM). | ||||||
| RichardW |
On the tax site they have a few questions that you answer to decided if you are self employed or not one is do you work for only one employer.
Go to the HM site & use the ESI tool. http://www.hmrc.gov.uk/employment-status/index.htm#1 Here is the list but the tool is better. As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee: Do they have to do the work themselves? Can someone tell them at any time what to do, where to carry out the work or when and how to do it? Can they work a set amount of hours? Can someone move them from task to task? Are they paid by the hour, week, or month? Can they get overtime pay or bonus payment? If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed: Can they hire someone to do the work or engage helpers at their own expense? Do they risk their own money? Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves? Do they agree to do a job for a fixed price regardless of how long the job may take? Can they decide what work to do, how and when to do the work and where to provide the services? Do they regularly work for a number of different people? Do they have to correct unsatisfactory work in their own time and at their own expense? Justme |
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| RichardW |
I bet Nick is IR35 Justme |
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| Blacksmith |
One Question, one request.
1. How much did you earn last year ? 2. Send it in now. 
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| jema |
I am not sure the tax office has pushed this much, my accountant used to mutter I might be at risk, but I was never challenged and was confident that despite at the time only being paid via one company I did not actually classify. |
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| RichardW |
I was the same but went the "umbrella" company route whilst contracting. Opened up lots of legit expenses too. Justme |
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| dougal |
I think I'm right in saying that self employed manual labour has for years been something that the Revenue have been extremely suspicious of (and especially in the building industry). Problem is that the 'contractor' is paid gross and responsible for his own tax affairs. Were he to give a false name, the Revenue wouldn't get their tax, so they have registration schemes, and employers have to either account for the tax, or get the registration details of their "contractor". They reckon that the reason for being a 'self-employed' labour contractor is almost certainly to get away with something -- and they want to know what that something might be... While there might be some advantages (like offsetting the running costs, repairs, washing, parking tickets, etc of your van rather than paying them out of after-tax money), there ought to be lots of 'security' benefits (like sick pay) from being employed that would likely outweigh the short-term advantages for most folk. |
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| MarkS |
My thoughts exactly. This is just making you cheap labour and losing any security and benefits of employment. You will be picking up the cost of slack time, illness, pensions etc. Dougal is correct about the revenue taking lots of interest in construction/labourer things. Look up CIS (Construction Industry Scheme I think). IR35 has been described as 'optional' . I'm not sure about that but it does seem to be poorly understood by many - including some IR perople. S.660 is a concern as well, although the Arctic case was good. I still think Ltd is the way to go for IT contractors - you can claim all the same legit expenses as you could through a brolly and not have to take everything else as paye. Too many brollies are encouraging claiming expenses without justification and some have had real problems when the IR poke their nose in. |
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| Treacodactyl |
For IT contractors if you get you contracts checked by a reputable company then it seems the Government hardly ever wins an IR35 case.
I notice in the latest budget there were details about clamping down on expenses through umbrella companies. |
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| lottie |
If you are selfemployed in the building industry most firms won't deal with you now unless you are registered with the construction industry scheme---they then take basic tax of whatever they are paying you and when you fill returns in at the end of the year,you reclaim expenses against this/pay higher tax if applicable etc. It's no more complicated than other selfemployment and probably easier as you are paying tax as you go---and no more complicated than phoning to register and getting a number. The days the revenue runs to help people going selfemployed are very useful and helpful and completely free to give people the basics whether they are going full or part time self employed. | ||||||
| greenboots |
thanks for the info, will be asking lots of questions. |