PAYE and also self employed

starchild42

Am working for a local authority PAYE earning just over £40k a year. Have also just started teaching students a subject I specialise in at my LA.

I will be working 6 times at £295 per day plus travel costs. Organisation said it would be best for me to declare this as self employment to HMRC. Have contact HMRC and they took my details but could not give me any information at all on what I could offset against the £295.

Anyone have an idea if there is a site, book or where I could get advice on what receipts I should be keeping during the year.

All help gratefully received

Paul

starchild42

what more information do you want?

Its six training days provided by me to students of the Institute of Revenues Ratings and Valuation. The six days are all at Birkbeck University but different parts of the campus, so no it's not in the same venue each time (sort of)

I guess what I am saying is that if it for the provision of training I trying to find out what I can offset such as clothing, a laptop to do my presntations on. I need to write all the material so can I claim a percentage of gas, electricty, food and other household bills?

ceeforcat

Jimmo is giving some very good advice here – I am ex revenue and I would be challenging your employment status resolutely. I note ‘Organisation said it would be best for me to declare this as self employment to HMRC’ – it is better- for them – they will avoid paying employer’s NIC.

You do not determine your hours of work, are paid a ‘wage’, use premises from your income provider, presumably do not advertise your services and have no headed notepaper. Have you a separate business account? All of these are indicative of an employed person.

Should it be determined that you are employed at some stage in the future the following will happen:

Earnings at £295 per week for, say, 48 weeks per annum = £14160 net.

This equates to, in your case, as you are a higher rate taxpayer:

£24000 gross less £9600 PAYE less £240 NIC.

The HMRC will seek FROM YOUR EMPLOYER (as the onus is very much on them to determine your employment status):

PAYE £9600
NIC £240

Plus employer’s NIC (approx £2400) plus penalties and interest.

Explain this to them – they may no longer be so keen to advise you to be self employed.

On the self employment expenses question:

Laptop – No – Capital Allowances only.

Clothing – No unless specific to your job e.g. barristers gown

Electric. Heating etc. – Yes usually in the form of a ‘Use of Home’ allowance.

fengirl_2

Also an ex HMIT, I would query your employment status. Presumably you cannot send anyone else to do the job and you are not risking your own capital to undertake this work. The University appears to have set your rate of pay and are supplying students so if no one turns up, you are not the loser. This indicates employment.
I spent a lot of years dealing with University employees, tutors and lecturers and the basic premis was always that outside lecturers had basic rate tax deducted as these were positions withn the university. In my new life, I ran 20 hours on Charity Law for the Board of Continuing Education and this was certainly considered an employed position. I was presented as a lecturer of the University and got paid the same fee no matter how many students I had.