Where to start?

Proppo

Hey All,

I'll give you a bit of back ground info first.

I'm 26, as is my parter. She works in retail with a salary of 18/20k per year, I'm a multi-skilled tradesman (self employed though, although I solely work for a company based in Bromley, Kent). My rate is per day @ £120(so taking an average of 48 weeks, allowing 4 weeks for time off/sick days etc), that should be around £29k per year. I also am registered with the CIS scheme.

I have no debt to my name, never had any credit cards, loans or anything (just checked my experian credit report, giving me 963). Although my girlfriend has a student loan (not sure the exact details on this), so any advice on how that could affect us would be great.

So, my question is where to start? Are we better off looking to rent, or buying our own place? I'm very handy as it were, so would be quite happy buying a slightly run down place as I know plenty of tradesman who would be willing to help me in areas I cant (electricians, plumbers etc), so I could buy to sell kind of thing? I'm based in Gillingham, Kent so if anyone knows anyone local I could turn to for advice that would be useful, brokers or whatnot? But I literally have no idea where to start.

I've only really started to save recently (opened up an ISA in march this year), and plan on putting as much into it as possible from here on out. I don't smoke, I don't drink and my only real expense is my car and phone bill (currently live at home with my parents). But my insurance is paid off in 1 lump sum at the beggining of each year. I'm very good when it comes to money I think, I only spend what I have and I never really want for much anyway. The only thing I do really want to do, is to look at moving out!

If you need any other info (other than my debit card info.... hah), I'd be happy to supply it.

Many Thanks for taking the time to look and possibly reply.

[Deleted User]

If you don't have much/any savings for a deposit, you'll not be able to get a mortgage. Minimum needed approx 10-15% and higher if you want a better rate on your mortgage.

If it were me I'd either stay put and save, or rent while you save before even considering buying.

Proppo

Cool ok, so save save save it is then. I tried to look on various sites, but places like Santander (with the loose credentials it asks for), said we could borrow around 175,000 but that just sounded pretty far out. Where as barclays seemed far stricter (almost a 30% deposit). Myself alone, should be able to save £1000/month, I spend around 200/250 a month in fuel and about £30 for my phone bill, then £200 to my parents. So that's at most 500 of the £1900 a month I get.

My biggest concern, is the hole self employed thing? For the 10 years prior, I was employed (well, I worked alongside my dad doing landscaping/brickwork etc), which in all fairness did me the world of good for establishing my skills in the trade. But I started with this company in Bromley who are in-undated with work, he is very happy with my standard/quality of work and has basically said I can stay however long I like. So I could be there for years to come. (Sorry for straying), so how does it come into play when I'm technically self employed, but I work for him on pretty much a gaurantee?

But thanks for the reply Domino9 .

[Deleted User]

Sorry, never been self-employed so I'm not sure how that works. But I'm sure that's been asked and answered here before - I just can't find the thread from a search. Hopefully someone'll be along shortly who's been in the same situation and can advise you.

If you haven't already read it - you should have a look at Martin's info on mortgages:

http://www.moneysavingexpert.com/mortgages/

leveller2911

Hi Proppo,
Regarding your self employment ,as your working for the same employer all year round shouldn't you be " fully employed" by them?

From the info youve given you/your "employer" might have trouble in convincing HMRC that you self employed at all.

I would contact HMRC and ask for a decision on your status before you think of getting a mortgage.........

The link below might give you an idea.........Good luck anyway.....


http://www.hmrc.gov.uk/employment-status/index.htm#1

Proppo

Well that has really thrown me!


As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

• Do they have to do the work themselves?

Yes, I carry out the work.

• Can someone tell them at any time what to do, where to carry out the work or when and how to do it? #

Yup, I'm often pulled from one job to the next.

• Can they work a set amount of hours?

I work 9 hours per day, 5 days a week.

• Can someone move them from task to task?

Yup, see above.

• Are they paid by the hour, week, or month?

Yes, Daily rate.

• Can they get overtime pay or bonus payment?

Overtime (by way of weekend work etc)

If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:

• Can they hire someone to do the work or engage helpers at their own expense?

Nope, I wouldnt want to either .

• Do they risk their own money?

I occasionaly buy small items needed for jobs, maybe a bulk bag of sand here and there, but never large quantities.

• Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?

I provide the majority of tools, the boss supplies all plant (mixers/barrows/rotavators etc).

• Do they agree to do a job for a fixed price regardless of how long the job may take?

Nope, I'm on a day rate.

• Can they decide what work to do, how and when to do the work and where to provide the services?

Not really, I'm given a job speclist at the beggining of each job.

• Do they regularly work for a number of different people?

I carry out work on behalf of the company, but for various clients.

• Do they have to correct unsatisfactory work in their own time and at their own expense?

This is 50/50, I've never completed a job to an unsatisfactory level.

So, according to that, I'm employed?

Is there another forum this discussion could be moved to? As it's got me very curious now as to what this all really means? Do the banks etc consider me employed on this basis etc?

SouthCoast

And:

The following factors will all help you decide whether you are an employee or self-employed when you want to find out what your employment rights are:-

• does your employer tell you what work to do and how to do it (even if you are left alone to actually carry out the work). Does your employer provide you with work, or do you have to go out and find your own work to do. If your employer controls the work to be done and provides the work, you will be an employee
• how you are paid. If you are paid a regular amount of pay at regular intervals, rather than being paid per job done, this indicates you are an employee
• who is responsible for getting the work done. If you have to find someone else, such as a sub-contractor or a friend, to do the work if you are unable to, this would indicate you are self-employed. If your employer finds someone else to do the work if, for example, you are off sick, this would indicate you are an employee
• who provides tools and materials to do the work. If your employer is responsible for supplying main tools and machinery and materials, with you responsible for supplying only a few of your own tools, you are likely to be an employee.

More:

http://www.adviceguide.org.uk/index/your_money/employment/contracts_of_employment.htm#how_to_tell_if_someone_is_an_employee_or_not

surreybased

Hi,

HMRC could decide to do an audit and question your employers practices and decide you are really self employed. The key test, debated in tribunals are:

1. Do you have the opportunity to send a subsitute? Even if you don't you should have the opportunity to do so.
2. Does your employer tell you how to do the job? Do you supply most items to do the work i.e hand tools
3. Does your hours, pay vary on an annual basis?

Self employed status has tax advantages for the employer (no NI) and also for the worker so it's a potential HMRC tax avoidance issue.

However back to mortgage - banks will just take your current status- you're paid on a self employed basis therefore you are self employed. They will look at your accounts (i.e your tax return) and will need to see steady income for a period of 2-3 years. Why not speak to a broker now and get the information you need and of course save, save, save. Your credit history and lack of debt will be in your favour, so well done.

Proppo

If I was to enquire about it, could it affect my position at work?

I don't arrange cover, (I've only had 1 day off so far), where he arranged for the labourer to just do smaller tasks on the job. If I was to fall ill, he would either get someone to cover, or just go back the day after.

He gives me a spec list with what he wants done, I use my practical knowledge to put it in place, so that's 50/50. I supply a majority of the tools, dewalt sliding mitre saw things like that, to various hand tools. I don't supply wheelbarrows, mixers, or any plant, he arranges that.

My hours/pay is the same, 9hrs a day @ £120 per day.

Is it beneficial to me being self employed? My biggest concern now is, it's not illegal or anything either way though is it?

I know for the employer it seems to have a mass of benefits (which does frustrate me, I just can't afford to risk my job hehe). It seem's he gets the majority of the good things and I get all the bad :P.

Leon_W

Who pays for the insurance on jobs you do ?

Proppo

I was told that I have to provide my own insurance (public liability), but only for myself, not the labourer or anyone else.