Self Employed Question

bramble1

My partner is self employed and has done some work recently for another company - usually he invoices who ever he works for and we keep track of tax and national insurance etc.

We've recently invoiced a company who want the details of his individual tax code and want to deduct the tax from his pay - i've not come across this before so am confused as to why they need to do it and if it is nessesary to do so?

KiKi

bramble1 wrote: »

My partner is self employed and has done some work recently for another company - usually he invoices who ever he works for and we keep track of tax and national insurance etc.

We've recently invoiced a company who want the details of his individual tax code and want to deduct the tax from his pay - i've not come across this before so am confused as to why they need to do it and if it is nessesary to do so?

As far as I know, unless there are exceptions in some industries or something I'm unaware of, this sounds very odd to me, too.

If you're self-employed, you pay all tax and NI, so there is absolutely no need for them to do anything. Sounds like they may be a bit confused. He may need to explain to them what self-employment is. (Again, unless there's something I'm not aware of!)

KiKi

bramble1

Glad it's not just me totally confused then!

He's not on payroll as far as i can tell - he wouldn't ask to be on pay roll as he works on an ad-hock basis.

bramble1

Apparently if you work in construction you need a CIS code and you national insurance and tax is paid even though you are self employed! - OH doesn't have this code and it was their mistake. PHEW. except now he won't get paid till next week which is rather frustrating!!!

KiKi

Ah! There you are! Another of those construction industry quirks. (I learnt something new last week and this week, then!)