Self-employment - beneficial or not?

MrsC2be

Hi folks,
I have recently been offered a new job however the lady has asked that i go self-employed as she owns a shop and does not want her books to be messed, understandably.
My problem is that i am only 20 years old and am wondering if this is a good thing for me at the moment.
I am currently employed but hope to leave within the next few weeks as this job would pay better than my current job (if self-employment is the better option).
My weekly tax and insurance would only be around £5(max) a week so therefore im not sure if an accountant would be needed!

Please provide any help or advice and fast and i need the transition to be made rather soon.

P.S. sorry if this is posted in the wrong section (first time posting)


Thanks

persa

MrsC2be wrote: »

I have recently been offered a new job however the lady has asked that i go self-employed as she owns a shop and does not want her books to be messed, understandably.

This comes up a lot.

You cannot choose to "go self-employed." You either are self-employed or you're not. This lady might prefer for you to be not treated as an employee and you may agree that's only fair, but neither of you are HMRC and it's their ruling which counts.

Unfortunately, if she really can't be bothered operating a PAYE system and it is pointed out to her that she doesn't get a choice in the matter, the offer of work may well get retracted...

Probably not what you wanted to hear, but if you're considering leaving an existing job, you deserve to know the cold harsh truth!

Now, that said, if you post some more details about what the work would involve, we may be able to give you an indication of whether you would in fact be an employee or a self-employed worker. "Please go self employed" might just have been a poor choice of words on her part.

Hammyman

MrsC2be wrote: »

Hi folks,
I have recently been offered a new job however the lady has asked that i go self-employed as she owns a shop and does not want her books to be messed, understandably.
My problem is that i am only 20 years old and am wondering if this is a good thing for me at the moment.
I am currently employed but hope to leave within the next few weeks as this job would pay better than my current job (if self-employment is the better option).
My weekly tax and insurance would only be around £5(max) a week so therefore im not sure if an accountant would be needed!

Please provide any help or advice and fast and i need the transition to be made rather soon.

P.S. sorry if this is posted in the wrong section (first time posting)


Thanks

What she is wanting to do is illegal. It has nothing to do with messing the books and everything to do with her wanting to evade having to pay employers NI and also means she doesn't have to bother with employment law. You would not be entitled to paid holidays, have protection under the working time directive, have no right to notice of termination of employment and no rights to redundancy pay. And in fact if she doesn't pay you, you can't take her to tribunal and would have to sue through small claims court.

whitewing

What kind of shop is it?

Is at actually a hairdresser's or something like that, where you can rent salon space? That may make a difference to the advice you are given.

MrsC2be

thanks for everyone who replied.

Its a bridal shop that she owns. The work involves lifting her daughter from school and then taking care of the 2 younger, a small child and a young baby.

I was told that i would need to take out some insurance to cover the children while in my car etc..
If this adds to the steep rising costs then its clear that its more hassle than its worth..

persa

MrsC2be wrote: »

thanks for everyone who replied.

Its a bridal shop that she owns. The work involves lifting her daughter from school and then taking care of the 2 younger, a small child and a young baby.

I was told that i would need to take out some insurance to cover the children while in my car etc..
If this adds to the steep rising costs then its clear that its more hassle than its worth..

Ah, so nothing to do with the shop after all!

I'm not particularly clued up on the differences between babysitting and childminding, so I will bow out of the discussion and let someone more knowledgeable comment.

HappyMJ

MrsC2be wrote: »

thanks for everyone who replied.

Its a bridal shop that she owns. The work involves lifting her daughter from school and then taking care of the 2 younger, a small child and a young baby.

I was told that i would need to take out some insurance to cover the children while in my car etc..
If this adds to the steep rising costs then its clear that its more hassle than its worth..

It's most probably self employed. You need to add business cover on your car insurance and you need to get public liability insurance. If you are looking after a young baby you really should also be ofsted approved (if in England). It's unlikely you will earn enough profit to pay tax but you should -must- also register as self employed with HMRC and consider opting out of national insurance if you are credited with NI contributions from elsewhere. Otherwise you need to pay about £2.50 per week.

You can get a grant to help cover your set up costs.

edit: just noticed you are in NI. Not sure about the registration requirements for NI. Try here http://www.nicma.org/cms/component/content/article/150