Being self Employed

[DarrenSV650S]

I will be working for a company but they said I will be self employed. Not sure why, there must be something in it for them.
So what do I have to do exactly? Keep all my petrol receipts then hand them to an accountant at the end of the year?

[Rich]

What Job is it?? Male escort?

[DarrenSV650S]

Originally Posted by Rich

What Job is it?? Male escort?

Right that requires explanation. What made you think of that?

[Rich]

Originally Posted by DarrenSV650S

Right that requires explanation. What made you think of that?

I thought it was a totally reasonable question!! You haven't said i'm wrong yet so i must be close to the mark!!

Sorry i'm being no help!!

[peterco]

Check with DWP

http://www.dwp.gov.uk/

pete

What's in it for them? - you won't be an employee. No security of employment, so they can fire you whenever as long as they give you contractual notice, they won't make any NI payments - so it's all down to you - welcome to class 2 and class 4 NI!!! What you get depends on how strong your bargaining position is. If all your work is for them then Inland Revenue statement IR35 will apply and they (the IR) will treat you as an employee. How it all works out in practice depends on what sort of job you do and how easily you could find something else if it all goes tits up. I'm a solicitor - have been self-employed for 4 years now - and while it can be very hard it's also very liberating, I don't think I'd make a very good employee now cos I'd tell people exactly what I think. And often, people don't like to hear the truth

I'm PMing you my number. Call me if you like.

Ed

It means your a sub contractor, they can cut you loose any time they like within the terms of your contract...

Its quite complicated as I understand it...

and very important...no paid holidays

As Ed says be careful of IR35, the gist is if your acting the same as you would a full time employee then you have to put everything though PAYE (i.e. tax and both lots of NI). However, if you dont fall under IR35 there are a number of ways to work things to your advantage with company dividends, etc.

A number of umbrella companies exist which will technically employ you, and for a fee process your invoices, pay you and bill the end customer. So you wouldn't have to setup a LTD company.

If you run your own LTD company, even under IR35 there are some benefits (I think its an extra 5% you can claim tax relief on but an accountant will advise you of this).

http://www.contractorcalculator.co.uk/ might help with some of the maths and some advice.

It can give you freedom, likely better pay than a full time employee. However, it can be a pain in the **** with administration.

However, if you want to work for people for on a fixed term, e.g. 3months, 6months, a year, etc, it might be worth it.

If your looking for the (so called) security of a full time job, it's not a good way to go about it, unless your own LTD company can bring in enough money to do that for you (i.e. if they don't renew your contract, you get sick, etc the LTD company has the resouces to pay you even though no money is coming in.)

Originally Posted by gid

and very important...no paid holidays

Also no sick pay, or redundancy either.

Dan

You could start off with an Umbrella Company while you find an accountant etc... which is what I did.

I am contracting for BT through an agency called Elan IT and under the current climate I am going to stay with my Umbrella Company - Crystal Umbrella esp as there is another cull by the end of March .

I don't fall under IR35 but chose to take the route of an Umbrella Company for the moment, less hassle for me. I have a Ltd Company (you have to pay to set this up) but have made it dormant. You will have to get insurances etc...

I am a member of the Professional Contractors Guild.

Here is their link and it is pretty useful, tells you about IR35 etc... You do not have to take up their membership.

http://www.pcg.org.uk/cms/index.php?...FQFvGgodC3PunQ

Hope this helps