Found out I was self-employed after 2 months they want expenses back

KiKi

hello2007 wrote: »

Did you not noticed that they did not take tax and ni out of your pay?

That logic doesn't work, I'm afraid! If they paid the OP as a SE person, then the OP would have had to invoice them, in which case they'd already know they're SE.

Did you get a contact which would say if you are employed or self employed ?

You wouldn't have an employment contract if you're SE with a company, though.


Until the OP explains how they've been paid, it's a bit of a mystery.
KiKi

scheming_gypsy

Hammyman wrote: »

Err, AND?

If the job is advertised at £300 a week, as an employee your gross is £300 a week and you're paid that less tax and NI. If you are self employed, you are paid the full £300 a week and you're responsible for paying your tax and NI, still ending up with the same net amount once you've put that aside.

The top line is still the same. The amount you end up with net is still the same. So again, please tell me where you pay extra tax and NI.

if you're self employed you pay employers NI as well, so there'll be a difference in the net from the £300.
PAYE = £300 - tax and NI
s/E = £300 - employers NI, tax and NI

agree on there being no extra tax though

hello2007

KiKi wrote: »

That logic doesn't work, I'm afraid! If they paid the OP as a SE person, then the OP would have had to invoice them, in which case they'd already know they're SE.



You wouldn't have an employment contract if you're SE with a company, though.


Until the OP explains how they've been paid, it's a bit of a mystery.
KiKi

I have been self employed before and the company provided me with paperwork that said I was self employed and that I had to pay my own tax and ni.

LittleVoice

scheming_gypsy wrote: »

if you're self employed you pay employers NI as well, so there'll be a difference in the net from the £300.
PAYE = £300 - tax and NI
s/E = £300 - employers NI, tax and NI

agree on there being no extra tax though

No, self-employed people do not pay employers NI. Only employers employing employees pay that.

Self-employed people pay Class 2 and Class 4 NI (depending on level of income). That's not the same as paying employers NI.

If you are working through an umbrella company, they will be charging you employers NI but that's a different relationship, not proper self-employment.

KiKi

hello2007 wrote: »

I have been self employed before and the company provided me with paperwork that said I was self employed and that I had to pay my own tax and ni.

Yes, you do have to pay your own tax and NI.

But if the company had paid the OP in this way, then the OP would have had to have invoiced them. Thus the OP would already know they are SE. Therefore suggesting they check their pay to see if NI and tax are included wouldn't work.

KiKi

scheming_gypsy

LittleVoice wrote: »

No, self-employed people do not pay employers NI. Only employers employing employees pay that.

Self-employed people pay Class 2 and Class 4 NI (depending on level of income). That's not the same as paying employers NI.

If you are working through an umbrella company, they will be charging you employers NI but that's a different relationship, not proper self-employment.

ah cheers.. i presumed you'd have to pay it as you were still being paid as an employee of your own company.

Hammyman

scheming_gypsy wrote: »

if you're self employed you pay employers NI as well,

WRONG.

If you are self employed as a sole trader, you only pay Class2 and Class 4 NIC which works out about the same as PAYE NIC. You do not pay employers NI. If you are set up as a Ltd company and paid as an employee of your Ltd Company then you DO pay employers NI.

scheming_gypsy

so not 'wrong', just half right...

LittleVoice

Hammyman wrote: »

WRONG.

If you are self employed as a sole trader, you only pay Class2 and Class 4 NIC which works out about the same as PAYE NIC. You do not pay employers NI. If you are set up as a Ltd company and paid as an employee of your Ltd Company then you DO pay employers NI.

Not really. It's the limited company which pays employers NI. The company is not the same legal entity as "you". And if you work through a limited company, you pay Class 1 NI.