New to Self-employment

iAMaLONDONER

Hi,

I have 2 0-hour contract jobs. One I'm employed and the other I'm paid through Inland Solutions* as if I'm self-employed. (both after 4/13 ..the S/E one I got last week!)

I'm a student so I'll be unlikely to have the time to earn 5,575 from 4/13-4/14 (even with 2 weekend (0-hour) jobs)

* they siphon 5% of my income from that job! And they are going to try and sign me up to an accountancy part of their business that'll charge 6 quid a week! Though I'll tell them no and that Ill happily deal with HMRC myself!

Is there anything I need to watch out for?
I'm going to register as self-employed with HMRC tommorrow

Will I have to make a spreadsheet with my weekly earnings from both jobs as well as expenses? The self-employed one pays weekly , the employed one plays monthly

I will definitely be using the exemption form for low earnings to avoid Class 2 NIs but what will happen if I end up earning

tattooedjadey

I cant answer your questions, but I wish you all the best going self employed!
Im looking to do this in the near future, for the long term for myself as I cant stand the thought of relying on other people to keep me in a job.

iAMaLONDONER

tattooedjadey wrote: »

I cant answer your questions, but I wish you all the best going self employed!
Im looking to do this in the near future, for the long term for myself as I cant stand the thought of relying on other people to keep me in a job.

Tbh I've been forced into self-employment as the company doesn't want to pay us directly! But thanks!

306chris

I went self employed for three years and so long as the business you are doing is simple for example I was paid to drive vehicles so I had no premises, staff, stock etc then doing a self assesment was easy peasy.

Just keep records of what you spend and what you earn. I did a simple spreadsheet and didnt have any issues.

iAMaLONDONER

306chris wrote: »

I went self employed for three years and so long as the business you are doing is simple for example I was paid to drive vehicles so I had no premises, staff, stock etc then doing a self assesment was easy peasy.

Just keep records of what you spend and what you earn. I did a simple spreadsheet and didnt have any issues.

I've got a spreadsheet with all my earnings thanks!

Phil_68

Be careful about thinking you are self employed when you might not be. There is a yes/no pathway on the hmrc website to guide you.

As for the company taking 5% of your gross, they will be using a 'broker' that 'assists' you in claiming all your allowances to limit your tax bill. It can be good if you are earning a reasonable amount but if you're earning low wages in the S/E business then it ain't worth it.

Keep simple records and you should be fine.

Phil.

iAMaLONDONER

Phil_68 wrote: »

Be careful about thinking you are self employed when you might not be. There is a yes/no pathway on the hmrc website to guide you.

As for the company taking 5% of your gross, they will be using a 'broker' that 'assists' you in claiming all your allowances to limit your tax bill. It can be good if you are earning a reasonable amount but if you're earning low wages in the S/E business then it ain't worth it.

Keep simple records and you should be fine.

Phil.

I don't earn enough to pay tax- I'm a student

However it's a third party that takes my 5%

Phil_68

iAMaLONDONER wrote: »

I don't earn enough to pay tax- I'm a student

However it's a third party that takes my 5%

So what do YOU get for the 5% deductions?

Phil.

iAMaLONDONER

Phil_68 wrote: »

So what do YOU get for the 5% deductions?

Phil.

Nothing at all really.

We have no choice that's the only way the recruitment agency will pay us.

Also I know that it saves them money making us 'self-employed' - no employers NI ,no employment rights or holiday pay

Phil_68

Ok, first thing first - you can only be self employed if you choose the hours you work. There is more to it than that, but that is a good starting point.

As for taking out 5%, if you have no benefit from it then find another agency.

Better still, pay me 10% of your annual earnings for employment advice

Phil.

jobbingmusician

Go and have a look at post 1 in the mystery shopping thread. It's a sticky at the top of the 'Up Your Income' board.