Being Self-employed in a Salaried Position

925dancer

I've been invited to an interview on Monday with a company who pays its employees (I know technically you wouldn't be) a salary with set hours etc but as self-employed.

Now this immediately set off alarm bells but at the same time it sounds like an interesting company on the face it, at the same time I have a few reservations (the man I spoke to being one of them!).

How much of a headache would it be for me to my own tax etc? Would I have to keep all receipts, how do you pay tax and NI (monthly, tax return yearly?).

I just don't know if I want to move to London and have all this headache too!

jer102

Hi Dancer,

It's a bit of a conundrum, is it a day rate or an annual salary?

If I were you, to take the risk out of it all, I'd get in touch with an umbrella company (a quick search on google will give you some, along with reviews.). Umbrella companies act as middlemen, where you are employed by them and they then charge the Client (your real employer) your salary. There is a fee that's payable, however, the tax relief benefits you get this weigh normally more than compensate for this.

The umbrella company will also ensure that all taxes are paid properly with minimal involvement from you.

Hope this helps!

InsideInsurance

Are they expecting you to be a sole trader (often called self employed) or to form a limited company?

It is not unusual for organisations to use contractors but if they do they normally want that contractor to form a LTD or go via an umbrella as it helps create the distance between a normal employer/employee relationship.

If it is definitely a front to being an employee then an umbrella will give you and them the way of avoiding issues. If it could be argued your truely not an employee and the income is high enough then a limited company can give you a more tax efficient vehicle for your monies.

lindens

I used an umbrella company and it was great, it gave me peace of mind.Ok so I had to give them a precentage as a fee but it was worth it and better than an accountant. I only had to keep petrol receipts and keep daily record of mileage which i sent to them with my timesheets.
Obviously I can't recommend (but their name was another word for umbrella lol)

925dancer

It's for a property manager position within a property company. The salary isn't amazing and I'd be working, as far as I could tell, as if I was an employee. It is advertised in a normal way as if you are an employee.

It was just in conversation he said the salary would be x and you would be self-employed (purely for tax purposes I'm assuming).

It's giving me a headache just thinking about it!