When is best time of year to go from employed to self employed - same firm

YoungBusinessman

So main difference being obviously i am paid gross wages and tax and NI become my problem. Secure job for my 50 hours a week, i am going to be taking on my own jobs outside of this 50 hours(i am allowed to aslong as doesnt effect my job in anyway)

Since taking on own jobs been offered if i want to get off the books and paid gross wages, however it is completly upto me.

I think i will, just considering best time of year for it? Would best time be now, so i get the full financial year?

paddyrg

No best or worst times, everything will be calculated pro rata anyway.

Are you sure you want to do this? 50h/week doesn't leave a lot more week to do another job in without affecting performance, and once you go freelance you can easily find those 50 hours become 40 then 30 then 20 and there's nothing you can do about it - it's cheaper and easier to chop freelance hours than permie staff.

YoungBusinessman

Well work is secure as its been in the 6 years iv been there, lots of work on. Instead of take on more staff they just up the hours of the small workforce that is there so when work is a little slow everyone goes back onto 50 hours. Worked upto 90 hours a week(more if include pricing jobs) last summer and will be much of the same this year to get some debts and mortgage paid off a bit while building emergency fund.

When is first lot of my tax due if i go sole trader next week then?

Annisele

Would you still be working for the same company and doing the same thing? If so, then for tax purposes you might still be classed as an employee and you wouldn't be better off.

I'd be a bit nervous about the employer's reason for suggesting the change. You lose your employment rights, and you gain what exactly?

You should also google "IR35", as it might bite you (although HMRC has rather lost its enthusiasm for bringing IR35 cases; it didn't win all that many of them).

paddyrg

6 years, you have employment rights, going freelance would eliminate those so I assume he's offering a significantly better rate? Otherwise, you'd bed mad to take it.

If, however, you're mad, then you would fill in a self assessment form and be part of that annual cycle

martindow

Your employment needs to fulfil certain criteria for you to be considered self-employed or employed. Your employer or you cannot freely choose its status.

HMRC have some info here

http://www.hmrc.gov.uk/employment-status/

Mistral001

Going self employed at the beginning of the financial year would probably be the best time.

But tend to agree with others that unless you have been offered a big increase in hourly pay you may be throwing away a lot and your employer may be making a smart move that is in his/her best interest and not yours

Wywth

YoungBusinessman wrote: »

So main difference being obviously i am paid gross wages and tax and NI become my problem. Secure job for my 50 hours a week, i am going to be taking on my own jobs outside of this 50 hours(i am allowed to aslong as doesnt effect my job in anyway)

Since taking on own jobs been offered if i want to get off the books and paid gross wages, however it is completly upto me.

I think i will, just considering best time of year for it? Would best time be now, so i get the full financial year?

Wot, no tax or NI deducted?

Sooner rather than later I would suggest