Self Employed???

pinkypink411

Hi All,

Happy Easter!!! :j

I have just started a new job, but i have been asked to continue on at my previos job on a casual basis as and when i can help out.

I enjoyed my previous job, and could do with the extra income i would receive from it, although because i would be on Basic Rate Paye Tax, it is bearly worth it. :mad:

Could i work for them on a self employed basis and just charge them for the hours that i am there if they previoulsy paid me on a Paye basis?????

tyllwyd

It should be possible - I left my permanent job to go freelance, and afterwards they continued to place projects with me on a freelance basis. I mentioned this to a tax adviser at the Inland Revenue, and she frowned a bit and said that they would prefer to see that I was paid on a 'per job' flat fee rather than an hourly rate, to make it clear that I was self-employed rather than employed. So you would need to make sure that your agreement with your former employer showed that you were casual and that you could decide whether to work or not, things like that (best speak to someone at the Inland Revenue for advice).

But when it came to paying tax, your self-employed income would be added to your income from your other employment, and you would pay the income tax relevant to your total income, so you would pay tax on your earnings eventually whether or not you are self-employed.

Debt_Free_Chick

pinkypink411 wrote:

I enjoyed my previous job, and could do with the extra income i would receive from it, although because i would be on Basic Rate Paye Tax, it is bearly worth it. :mad:

Could i work for them on a self employed basis and just charge them for the hours that i am there if they previoulsy paid me on a Paye basis?????

It shouldn't make a great deal of difference to your tax position - all earned income is taxable, whether you are employed or self-employed.

Being self-employed means that there are certain deductions you can make, from your income, in order to arrive at your taxable profit. However, such expenses are probably met by your employer, whilst you are employed.

There might be a small advantage in being self-employed, but you are unlikely to be much better off.

Really depends on the nature of your job ... can you give more information please?

CIS

HMRC look dimly on someone who is S/E who works only/mainly for 1 company, they may deem you as employed rather than self-employed.

Take a look to see if it affects you
http://www.hmrc.gov.uk/selfemployed/tmaemployed_or_self-employed.shtml