Employed as self-employed

SiannieLaz

Quick question - if I am employed by a company, but they don't pay my tax or NI and class me as self-employed, do they inform the tax office that they are paying me on a self-employed basis? - hope that makes sense!

McKneff

What kind of work do you do for this company and do you provide them with invoices for the work you do.

PlutoinCapricorn

It is your responsibility to register as self employed, provided that HMRC's conditions for real self employment are met.

Some employers try to escape their responsibilities such as holiday pay by not deducting tax and NI but setting all the rules as they would for an employee. HMRC are cracking down on this.

McKneff

The HMRC decides who is self employed and not the employer or you.

It depends on the work involved and other criteria.

And to answer your original quesiton, the company does inform the HMRC

colino

If you are free-lancing for a company they will have absolutely no interest in your tax affairs (apart from a handful of industry specific, very strict schemes) and they will not have "informed" HMRC about anything. You will be in their accounts somewhere as a variable cost.

pinkteapot

If you are genuinely self-employed, you are effectively a supplier to the company.

It is your responsibility to register with HMRC within three months of starting self-employment. The easiest way is as a sole trader (other option is a limited company). You just phone them, give your company name (can just be your name), and provide your details. They will then issue you with a tax return after the end of the tax year.

However, as others have said there are definitions of employed and self-employed which is likely to decide your status for you. See here for some guidance:

http://www.hmrc.gov.uk/employment-status/index.htm#1

SiannieLaz

Thanks All,
It's a part time job for cleaning company, they will pay me a gross, hourly rate and it's up to me to sort out the tax. However, they want my NI number and I wondered why if it's down to me to sort out tax, etc.

anamenottaken

SiannieLaz wrote: »

Thanks All,
It's a part time job for cleaning company, they will pay me a gross, hourly rate and it's up to me to sort out the tax. However, they want my NI number and I wondered why if it's down to me to sort out tax, etc.

How much will you be earning?

Have you looked at the HMRC site to see whether what you will be required to do fits into being self-employed?

It would be "down to you to sort out tax, etc" if you were truly self-employed.

If you are not self-employed but don't earn enough to pay tax/NI then the employer won't be sorting out your "tax, etc" as there will be none due.