Employed/Self Employed Query...
22 February 2012, 07:25 PM
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Employed/Self Employed Query...
Was talking to someone earlier regarding being self-employed or employed.
If you submit an invoice to receive payment you are self employed.
However, if you fill in a time-sheet to receive payment, you are employed. Not self-employed, even if contracting.
Is this correct? Not finding much of any help on Google.
If you submit an invoice to receive payment you are self employed.
However, if you fill in a time-sheet to receive payment, you are employed. Not self-employed, even if contracting.
Is this correct? Not finding much of any help on Google.
22 February 2012, 07:33 PM
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I believe you need to search for info on IR35 which is the subcontractor clause.
I used to invoice for my work as a contract trainer and was classed as not employed for tax on that income, ie I was able to offset travel expenses etc.
http://www.hmrc.gov.uk/leaflets/guide_limitcomp.htm
I used to invoice for my work as a contract trainer and was classed as not employed for tax on that income, ie I was able to offset travel expenses etc.
http://www.hmrc.gov.uk/leaflets/guide_limitcomp.htm
Last edited by Galifrey; 22 February 2012 at 07:35 PM.
22 February 2012, 07:39 PM
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20% was being stopped by the contractor.
22 February 2012, 07:48 PM
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22 February 2012, 07:50 PM
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22 February 2012, 07:55 PM
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Not heard of that mate?
I'm self employed , but also sub on new builds when quiet
Not that I fiddle any money
but it boils my **** losing 20% when subbing
22 February 2012, 07:57 PM
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Basically, you are self employed if you work for more than one person/company or supply people with a product or service.
Sub Contractors are forever being investigated as they tend to work for one company and submit a time sheet. Revenue wants as much money as it can get and if they can prove you work for only one Company, they try to sting the subbie and the firm for NI and class the subbie as an employee.
Self employed do not get holiday pay, though some build this into their fees. They also are not entitled to any redundancy if any of the firms they work for, go bust.
22 February 2012, 08:22 PM
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Was talking to someone earlier regarding being self-employed or employed.
If you submit an invoice to receive payment you are self employed.
However, if you fill in a time-sheet to receive payment, you are employed. Not self-employed, even if contracting.
Is this correct? Not finding much of any help on Google.
If you submit an invoice to receive payment you are self employed.
However, if you fill in a time-sheet to receive payment, you are employed. Not self-employed, even if contracting.
Is this correct? Not finding much of any help on Google.
There's 101 factors taken into consideration when deciding employment status and contrary to popular belief it isnt just about getting the maximum contributions in tax and N.I., it's also about protecting employee rights.
Without knowing the particular details of the work he does it's impossible to say whether or not he's employed. However if an Inspection uncovered a business using casual or self-employed labour when they should be on the books, they would most likely find themselves on the end of a bill for unpaid tax and N.I. with only unpaid contributions in the current tax year reclaimable from the employees.
22 February 2012, 08:46 PM
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As an ex-Revenue Inspector, total bollox
There's 101 factors taken into consideration when deciding employment status and contrary to popular belief it isnt just about getting the maximum contributions in tax and N.I., it's also about protecting employee rights.
Without knowing the particular details of the work he does it's impossible to say whether or not he's employed. However if an Inspection uncovered a business using casual or self-employed labour when they should be on the books, they would most likely find themselves on the end of a bill for unpaid tax and N.I. with only unpaid contributions in the current tax year reclaimable from the employees.
There's 101 factors taken into consideration when deciding employment status and contrary to popular belief it isnt just about getting the maximum contributions in tax and N.I., it's also about protecting employee rights.
Without knowing the particular details of the work he does it's impossible to say whether or not he's employed. However if an Inspection uncovered a business using casual or self-employed labour when they should be on the books, they would most likely find themselves on the end of a bill for unpaid tax and N.I. with only unpaid contributions in the current tax year reclaimable from the employees.
22 February 2012, 08:59 PM
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A sparky's mate is never going to be self-employed.
If he was paid short but tax and N.I was correctly deducted on what was paid then its up to him to sort with his employer.
If he was paid short, the inference being that no tax/N.I. deducted as he was being treated as self-employed, then yes HMRC would be interested. Just because its not a multi-million pound business doesnt mean they woudn't be interested.
As for turning up on his doorstep, sounds like bit of intimidation going on.
If he was paid short but tax and N.I was correctly deducted on what was paid then its up to him to sort with his employer.
If he was paid short, the inference being that no tax/N.I. deducted as he was being treated as self-employed, then yes HMRC would be interested. Just because its not a multi-million pound business doesnt mean they woudn't be interested.
As for turning up on his doorstep, sounds like bit of intimidation going on.
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