which is best?

lynzpower

Hi there all

Ive got an interview on friday for a role which is working from home. Basically, I need broadband & a PC which Ive got.

I have the choice of paying the tax myself or going PAYE.

is there a way of working out which way is the most moneysaving?

silvercar

It will depend on the how much more they will pay you if you are self-employed. You would need to allow for NI contributions and tax but would have greater expenses eg heating and lighting. You could claim some elements of utility bills as work expenses to reduce your tax bills.

Remember that the employer will make a saving on employer NI contributions and holiday pay, if you are self employed.

Unless the difference is really great, I would tend to choose PAYE, that way you know the Revenue can never demand more money from you.

Good luck!

Hoddie_2

I have the choice of paying the tax myself or going PAYE.

Employment status is not a choice!

lynzpower

Hoddie wrote:

Employment status is not a choice!

well thats how I understood it can you explain what you mean?

The email states that I can decide to go PAYE or self employed from home. I cant work in thier offices in any case I have to work from home.

Basically the work is there, its up to me how much I want to/ can handle doing. its equivalent to a tenner an hour.

RayWolfe

Go to the Revenue & Customs website that will explain what is self-employment. Essentially, from what you say, you probably would not qualify for self-employment status.

angelavdavis

lynzpower wrote:

well thats how I understood it can you explain what you mean?

The email states that I can decide to go PAYE or self employed from home. I cant work in thier offices in any case I have to work from home.

Basically the work is there, its up to me how much I want to/ can handle doing. its equivalent to a tenner an hour.

Lynz, I think Hoddie means that there have been changes in the law over the last few years (IR35 status) where companies who used long term freelancers essentially as members of staff (and therefore don't pay employers tax and NI contributions) are now made to treat these staff as PAYE or prove that they are not treated as members of staff.

This has caused many freelancers to now use Managed Limited Companies as a method of working instead of running their own Limited companies - however, recent budget changes have affected these too, although I am not yet clear how this is the case.

Essentially, you will have to pay PAYE on at least some of your income, even if you are self-employed. There are also changes to the limitations of your claimable expenses.

It may well be that your potential employer can meet the requirements of R&C, but err on the side of caution and check out the R&C website for more info.

Good luck Friday!