Self employed or employed

[Samba]

Hey all,

 

I am subbying for a couple of companies, one for 1 day a week, another for 3 days and do my own thing on the other. The guy I work for 3 days a wk says I need to be employed on the books and the 3 days is over the threshold of status for tax reasons. He is going to pay for my tax and NIS for me for the 3 days I work for him.

 

This isn't exactly what I wanted, as i recieve less each wk because of it, but as I need the 3 days its hard to say no. Does anyone know how working 3 days part time will affect my tax return when I go to complete it? None of the other companies I work for want to deduct my tax and NIS and I am confused why he wants to go down this route.

 

Also by being part time I would have thought I would get the other things that come with it (holiday pay etc)?

 

Any advice would be appreciated

[Dean O]

theres a lot of advantages to being employed - hol pay, NIC's etc. and regular work - employees generally get paid a little less per day but its a trade off.

 

I'm not sure that you would "have to be employed" by him based on the info provided as you have other "employers".

 

It may be that if he forsees employing you continually on the basis he has been then he is better off employing you or someone like you to fill the post.

 

Its up to you to decide wether you want to be employed.

[Billy68]

if you work for one persone on a regular basis he must count you as being employed best get some advice from your accountant

[likeitorlumpit]

Hey all,

 

I am subbying for a couple of companies, one for 1 day a week, another for 3 days and do my own thing on the other. The guy I work for 3 days a wk says I need to be employed on the books and the 3 days is over the threshold of status for tax reasons. He is going to pay for my tax and NIS for me for the 3 days I work for him.

 

This isn't exactly what I wanted, as i recieve less each wk because of it, but as I need the 3 days its hard to say no. Does anyone know how working 3 days part time will affect my tax return when I go to complete it? None of the other companies I work for want to deduct my tax and NIS and I am confused why he wants to go down this route.

 

Also by being part time I would have thought I would get the other things that come with it (holiday pay etc)?

 

Any advice would be appreciated

 

 

The company is covering itself.

Should Inland Revenue deem that you are employed by them then they would be liable not you for the owed tax/PAYE stuff. Can't blame them really.

[Hodge]

My company was faced with the same problem. You say you don't like it as you get paid less but you don't because the tax and NI he takes off you will be deducted from the tax you owe so should work out the same, or are you not paying tax?? I went through the same and ended up employing the lad, after a year I had to lay him off as by employing him put me over the vat limit.

[Samba]

Of course I'm paying tax, I have been both employed and self employed previously but have never come across this before. The other company I work for just pays you when you invoice irrelevant of how regular you work and they leave all your tax up to you.

 

I understand they are covering themselves and that I will pretty much be in the same boat come tax return time its just that when you are getting full subby pay(no deductions) you have the money in the bank and can use it at your own will. I just wondered if anyone was in the same boat and whether come April whether I could claim back the tax that he has already paid for me or whether I should declare all my earnings. Its been a long time since I was subbing and I've never been paid this way previously.

[Hodge]

Of course I'm paying tax, I have been both employed and self employed previously but have never come across this before. The other company I work for just pays you when you invoice irrelevant of how regular you work and they leave all your tax up to you.

 

I understand they are covering themselves and that I will pretty much be in the same boat come tax return time its just that when you are getting full subby pay(no deductions) you have the money in the bank and can use it at your own will. I just wondered if anyone was in the same boat and whether come April whether I could claim back the tax that he has already paid for me or whether I should declare all my earnings. Its been a long time since I was subbing and I've never been paid this way previously.

 

I was just asking, plenty of people try to avoid it. I would speak to your accountant, I had a lad who worked when I needed him, he used to do 3 days then he may only do 1, in the eyes of the tax lot I should have been employing him, my argument was that I don't all ways have the work to sustain him. I now use a couple of different lads and if the tax man comes asking I will take it up with them then. A lot of my mates are builders and are in the cis scheme, maybe there should be something similar for our job. You could all ways ask the guy u work for just to make sure he has your utr number and then if they do say anything they have proof you are paying the tax as you can be traced. As for NI, you should be paying this monthly yourself so you are covered there. The other way round it could be not to invoice the employer for days worked but jobs worked? Just an idea:)

[Warners]

Hey all,

 

I am subbying for a couple of companies, one for 1 day a week, another for 3 days and do my own thing on the other. The guy I work for 3 days a wk says I need to be employed on the books and the 3 days is over the threshold of status for tax reasons. He is going to pay for my tax and NIS for me for the 3 days I work for him.

 

This isn't exactly what I wanted, as i recieve less each wk because of it, but as I need the 3 days its hard to say no. Does anyone know how working 3 days part time will affect my tax return when I go to complete it? None of the other companies I work for want to deduct my tax and NIS and I am confused why he wants to go down this route.

 

Also by being part time I would have thought I would get the other things that come with it (holiday pay etc)?

 

Any advice would be appreciated

 

If you were only working for the 3 days a week firm then i think they'd be right. but as you work for your self and another firm and can prove it I don't think the first firm are right. However they can choose to pay you PAYE which it sounds as if thats what they want to do.

[likeitorlumpit]

I agree- but working for the other firm doesn't make you self employed. Many people hold down 2 part time jobs- this doesn't mean they are self employed.

To be self employed the IR have a list of requirements.

Whats to say you don't declare these other jobs that you do on your day off. How does the 3 day firm know you are doing so. It's their look out so you have to go along with them or get another job. If your self employed earnings are less than your tax code you can apply for tax refunded in April or before should you want to.

[Marc Lewis]

It is up to the employer how they wish to set out the terms of their contact of employment and if this means they want you a PAYE then that is how it is. I sympathise with you wishing to be self employed as I have always prefered this too, but ultimately it is your employers choice.