Am i self employed or a sub contractor?

cardigirl

Im a bit confused, been looking round in circles on the web.

Basically just went for an interview with a cleaning company,cleaning houses. Got the job and they told me that they dont deal with all the tax and national insurance etc and i have to do that.

I'll be employed by the company but doing my own paperwork.

So does this make me self employed or a sub contracter?

It isnt my business so surely its not classed as self employment?

Help v v v confused

Thanks

freebie-fan-jen

you dont have to have your own business to be self employed, my OH is a bricklayer who is self employed but it isnt his 'company' as he works for other people, AND he is classed as a sub contracter. call up the hmrc and they should be able to clarify? hope this helps xx

cardigirl

thanks very much

nexuss

You would simply type out an invoice every week or month stating the hours you did and the pay you earned.You give a copy to the cleaning company and keep a copy yourself.The cleaning company would then give you a cheque for example.
All you need to do is ring the HMRC and register as self-employed which takes just a few moutes on the phone.Make sure they give you a cheque or pay money into your bank account as to leave a paper trail and not cash as of any problems in the future.

easy

nexuss wrote: »

You would simply type out an invoice every week or month stating the hours you did and the pay you earned.You give a copy to the cleaning company and keep a copy yourself.The cleaning company would then give you a cheque for example.
All you need to do is ring the HMRC and register as self-employed which takes just a few moutes on the phone.Make sure they give you a cheque or pay money into your bank account as to leave a paper trail and not cash as of any problems in the future.

My guess is you won't need to produce an invoice, the company will probably have a system whereby they produce a timesheet for you, and pay you based on that. Make sure you keep a copy of any timesheets, and any other paperwork they give you, as you will need to fill ouyt a self-assessment tax return each year.

This does mean that YOU are responsible for your own tax bill. If you earn over the tax threshold (approx £6000 for most people), you MUST put a quarter of everything you earn over that amount away in savings, as you will need to pay it in tax. You also need to pay self-employed NI contributions, normally monthly by direct debit, otherwise you will lose entitlement to sick-pay, maternity pay etc, and contributions to the state pension scheme.

Do bear in mind that, on a self-employed basis, you will not be paid for holiday time, nor time off sick (you have to claim sick-pay from DWP).

On the positive side, you can claim your travel expenses to-and-from work against your profits, along with any cleaning materials you may buy.

easy

One other thing ... You will be responsible for making sure you are paid each week/month. Don't let the company keep owing you money.

This could be a minefield, are you sure you are comfortable with it?

fengirl_2

I dont think you would be self employed. Its a common scam for employers to just tell you that you are self employed to avoid paying NIC, sick pay, holiday pay, maternity, paternity, etc. You would have no rights basically. There is a useful tool here to help you decide whether or not you are self employed:
http://www.hmrc.gov.uk/working/work-out-emp-self-emp.htm