Should I go self employed?

Jet

I currently do a little bit of book keeping from home for a company I used to work for. I'm self employed and invoice them as and when.

I also work in an office and have recently resigned from my current position and found myself a new job, but my current employer has asked me to carry on working for them on a part time, basis doing their book keeping. The times will be up to me and will depend on the amount of work each week. I imagine it will be about 5 or 6 hours per week.

I initially thought I would just invoice them as I do the other company but as I will be working in their office rather than from home, can I do this? Is it better to be on their payroll? Bearing in mind I will be on the payroll in my other job.

fengirl_2

It's not a matter of choice, its a matter of fact as to whether you are an employee of the company or offering a service as a self employed person and its the employer's responsibility to decide this. If in doubt, they need to speak to their accountant or tax office.

Jet

Well, my boss wants me to go self employed. However, I doubt he has done any research into the matter.

Any

I would say invoice them and claim the cost of getting there as expense against the tax.

You will effectively be offering service.

Potential_Advisor

Any wrote: »

I would say invoice them and claim the cost of getting there as expense against the tax.

You will effectively be offering service.

I would tend to agree with the above. Although it may be worth seeking some advice, perhaps from the IR themselves, then at least you have it from the horse's mouth as it were. However, it depends on your r/ship with the IR and whether you are declaring the original book work that you are doing from home. Be careful...

Jet

Yes, I am. There's no cash changing hands and I file a tax return every year and pay tax on the profits.

Potential_Advisor

Jet wrote: »

Yes, I am. There's no cash changing hands and I file a tax return every year and pay tax on the profits.

Go for it Jet, best of luck to you.

MrCarrot

Any wrote: »

I would say invoice them and claim the cost of getting there as expense against the tax.

You will effectively be offering service.

I'm not sure they can claim the cost of getting there as an expense. Even if the OP is self employed - if their client's office is classed as a "regular place of work" and there is a set pattern as and when the OP goes to that office, they might have problems claiming.

Any

MrCarrot wrote: »

I'm not sure they can claim the cost of getting there as an expense. Even if the OP is self employed - if their client's office is classed as a "regular place of work" and there is a set pattern as and when the OP goes to that office, they might have problems claiming.

I am not sure - when accountants go into their client's office - even when it is in set pattern such as every first tuesday of month they can claim..

If employee (salesman) has in his contract of employment set his home as his office he can still claim getting into the companie's office as business expense..

And as the OP says - the time depends on her... so it won't be all that set..

MrCarrot

Any wrote: »

I am not sure - when accountants go into their client's office - even when it is in set pattern such as every first tuesday of month they can claim..

If employee (salesman) has in his contract of employment set his home as his office he can still claim getting into the companie's office as business expense..

And as the OP says - the time depends on her... so it won't be all that set..

I would just go ahead and claim the mileage as an expense - especially if the days and times differ.

However, if you only had 1 client and you went there 2 set days a week, and the work could only be carried out at their office, I think HMRC might have something to say about you claiming for this, surely?

Any wrote: »

If employee (salesman) has in his contract of employment set his home as his office he can still claim getting into the companie's office as business expense..

What if the company has every single salespersons contract as saying their home is their office, and they all travel into the company's office 5 days a week to work? I don't think they'd get away with that.