Changing self employee job for another ??

loobyloo168

Hello all,

Currently I'm registered as a self employed child minder which I'm having to give up at my landlords request.

Iv been offered to work for a new company that is contracted work from the council as a family suppoprtt worker.

Iv been told today that as its a new small company they don't currently do PAYE and that I would be able to do it via self employment.

I called HMRC today to ask how I would change over andim more than confused.

She said that I could change over from one business to start a new business and that I would need to fill in 2 seperate parts of my SA form which s fine, but I'm not starting a new business, it will be only a way if me paying tax and NI and to declare my earnings ?

She said I may be classed as a contractor but his is only usually for builders trades people ?

Does anyone else have any insight to how I would still declare my earnings and pay the appropriate tax and NI without having to register a new business as I would be working for someone else and not myself.

Ohhh im very confused about it all.

colino

The HMRC person is rightly warning you that you may be stumbling into incorrectly (and only for the benefit of the newco) described employment.
When you are truly self-employed you can undertake, within reason, any money-making activity your heart desires. Working for this newco, where they want, when they want, removes employment costs from them and takes away employee benefits from you.
Unfortunately in an era of lowest tender wins, more and more organisations are laying off their proper costs in this fashion, under-cutting properly constituted and operated, established businesses.
As it will be a fixed term contract with a council (shame on that LA for its terrible procurement) ask when the Newco will be in a position to take you on properly.

loobyloo168

colino wrote: »

The HMRC person is rightly warning you that you may be stumbling into incorrectly (and only for the benefit of the newco) described employment.
When you are truly self-employed you can undertake, within reason, any money-making activity your heart desires. Working for this newco, where they want, when they want, removes employment costs from them and takes away employee benefits from you.
Unfortunately in an era of lowest tender wins, more and more organisations are laying off their proper costs in this fashion, under-cutting properly constituted and operated, established businesses.
As it will be a fixed term contract with a council (shame on that LA for its terrible procurement) ask when the Newco will be in a position to take you on properly.

From what I gather it's a new company that's been running a year. The company actually is given work from the council to take children in social services care to supervised contact meetngs with parents and to observe them together and write a report afterwords that session. To go back to social services.

This new company only has 5 employees at the moment as thats all they need to cover the work the council provides them but as they get more work the hours will increase and more people will be taken on.

I'm qualified to do the job and childminding for myself was only as stop gap when I had my own child.

Just want to be able to pay the right tax and insurance and not land myself in any trouble with HMRC.

Debt_Free_Chick

loobyloo168 wrote: »

From what I gather it's a new company that's been running a year. The company actually is given work from the council to take children in social services care to supervised contact meetngs with parents and to observe them together and write a report afterwords that session. To go back to social services.

This new company only has 5 employees at the moment as thats all they need to cover the work the council provides them but as they get more work the hours will increase and more people will be taken on.

I'm qualified to do the job and childminding for myself was only as stop gap when I had my own child.

Just want to be able to pay the right tax and insurance and not land myself in any trouble with HMRC.

There are two, but linked, issues here.

The first is are you "employed" by the company doing the work for the Council or not? This is relatively simple; are you doing this work on their terms or yours? If on their terms then you're employed by them so they should be deducting your income tax & NIC via PAYE.

If not, then you're self employed, albeit doing work just for this company (and that, in itself, is a strong indicator that you're actually not self employed for this type of work). If you are self employed, then follow the advice that HMRC have given you.

To be honest, the company doesn't sound completely legit :eek: At the very least, it looks as though they're trying to get around employment law by suggesting that you're self employed when ... well, you're not are you.

So what to do ....? Well, you could go along with it. If the company gets found out, then the PAYE issue is their problem and HMRC will go after them for what they owe.

Or you could challenge them.

Or you could walk away.

Sorry not to be more positive, but I'm really struggling to find another explanation for all of this.

Perhaps see what others have to say - but I wish you well with this.

Pupnik

It seems to be becoming increasingly common for companies to be forcing staff to become self employed, it is the same where I work - when my FTC ended after 10 months I was made to go self employed (and at a much lower rate than my salary had been!) and I can think of quite a lot of other staff at my work in the same situation (and this is a huge company with thousands of members of staff so they should really know better!)

I wouldn't have thought you would need to register as another company if you are already registered as a sole trader - surely the point of being freelance is to take work from different employers? But then again, I know nothing about self employment and just blundered into it so don't really have a clue, sorry!

Horace

If you are only going to work for this new company then the HMRC will say that you are an employee and that the company should pay your tax and NI. You wouldn't be self employed.

What the HMRC are trying to say is that you can be self employed and employed at the same time and that you need to account for this in separate parts of your self assessment. So on one hand you could be doing self employed work for several people and you could have a part time or full time job working for a particular company where they pay your tax and NI and provide you with a P60 every April.