Sole trader question

quanto2009

Been made redundant and was working a temp contract as PAYE,which has now finished. I also had a second contract using a umbrella company this work was about 2 -3 days for about 3 months but not every week and have P60 for this.
This tax year worked on a temp contract that lasted 3 months and now finished but was paid direct by the main subcontractor I need to register and declare earnings of approx£4k. I have also started to pick up some work not sure how long it will last but this is through a umbrella company so all my expenses etc are sorted out by them this may only last a couple of months and is not a permanent temp contract.
How and when do I need declare the £4k and can I claim fuel rate as I was paid 20p per mile after the first 50 miles and any other business expense
Do I register as a sole trader?
I am looking for permanent work in the mean time.

pooch

quanto2009 wrote: »

Been made redundant and was working a temp contract as PAYE,which has now finished. I also had a second contract using a umbrella company this work was about 2 -3 days for about 3 months but not every week and have P60 for this.
This tax year worked on a temp contract that lasted 3 months and now finished but was paid direct by the main subcontractor I need to register and declare earnings of approx£4k. I have also started to pick up some work not sure how long it will last but this is through a umbrella company so all my expenses etc are sorted out by them this may only last a couple of months and is not a permanent temp contract.
How and when do I need declare the £4k and can I claim fuel rate as I was paid 20p per mile after the first 50 miles and any other business expense
Do I register as a sole trader?
I am looking for permanent work in the mean time.

You don't claim to be a sole trader/self employed at all if you are actually only employed.

The fact that the umbrella company pays you your expenses and that previously you have been provided with a P60 suggests you were previously employed by them (unless I'm missing something)

As for the job you took direct with the main contactor, are you sure you really were self employed? If so you should have registered as such within 3 months. You might want to speak to HMRC about that role. You may find that HMRC find you were actually employed by the main contractor, not providing a service to them as a sole trader

quanto2009

The job with the umbrella company is employed, the job with the contractor not because I have no expenses or tax paid by them, just paid direct to my account

steve1980

If you were working exclusively for that contractor (you couldn't/were not allowed to work elsewhere) then you are classed as an employee.

Just because someone doesn't pay you expenses does not make you self employed!

antrobus

steve1980 wrote: »

If you were working exclusively for that contractor (you couldn't/were not allowed to work elsewhere) then you are classed as an employee.

Just because someone doesn't pay you expenses does not make you self employed!

If the OP was "paid direct by the main subcontractor" then they were self-employed as far as they are concerned. HMRC might or might not take issue with the main subcontractor's decision to treat the OP as self-employed, but that's their problem.

quanto2009 wrote: »

...How and when do I need declare the £4k and can I claim fuel rate as I was paid 20p per mile after the first 50 miles and any other business expense...

Contact HMRC now and tell them you need to complete a Self Assessment return for the 2011-2012 tax year because you were self employed for part of the year.

As far as the fuel rate is concerned, the 20p per mile you received would be taxable income, but you claim 45p/40p (?) mile back as a tax allowable expense.

P.S. You will probably have some flat rate NI to pay as well.

quanto2009

The paid contractor work was carried out in this year april 2012 do I complete for 2012-2013?

steve1980

Fill in the online form via HMRC.

https://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dep

steve1980

antrobus wrote: »

If the OP was "paid direct by the main subcontractor" then they were self-employed as far as they are concerned. HMRC might or might not take issue with the main subcontractor's decision to treat the OP as self-employed, but that's their problem.

Actually they will also look into the OP as well.