advice need on reg comp or payee

mumof3girls

have found out that from the 6th april HMcustoms will no longer allow conventioal self employed operation without being reg company or payee. does this mean the company has to be limited or do you just have to be registered???

WHA

Firstly, there is no such "new" rule - you have been misinformed. If you are truly self employed, you can operate through your own limited company, as a self-employed sole trader, or via PAYE (i.e. employment). What may be happening is that your "employer" is running scared as they are liable for your tax and NIC if you claim to be a self employed sole trader, yet HMRC come along and say you are really an employee, that is why many businesses only give two options, i.e. payroll or own limited company. If you work through agencies, then they have separate rules (again not new) in that they have to pay you PAYE or through your own limited company - the law prohibits you being a self employed sole trader if you work for an agency - and has done for a few years.