earnings - declaration what it all means

frank66_2

hi

i am presently unemployed in terms of a full time salaried job

however, i am doing some work for a friend which i think should be declared pretty soon for tax and NI purposes

what are my options?
i dont consider myself self employed
however, by agreeing to help a friend and getting paid for it
i have entered a contract
does this in effect make me self employed?

if so - when i declare - do i need to set up as self employed?
or do i set myself up as a sole trader? any advice?

in terms of other work/ jobs -- i am unemployed so this 'work' is my only income at the moment..

very confusing - any help greatly received

thanks

InsideInsurance

Unless you are an employee of your friend and they are doing PAYE returns for you, giving you a payslip etc then you are self employed.

Self employed = sole trader (or partnership)

You need to register as a sole trader with HMRC and deal with your Class II NI contributions and then do a self assessment tax return at the appropriate time depending on when you first started doing this work for them. Assuming it was after April this year then the first one is due by Jan 2015

Seanymph

http://www.hmrc.gov.uk/sa/self-emp.htm

that will tell you whether you should consider yourself as self employed or employed.