self employed to contract. tax question?

dandare

hey folks i hope someone could help. i have been working as a self employed photographer for 1 1/2 years and have just started a temp contract f/t for 6 months. the employers have been asking about a p45 but as far as i'm aware you don't get one for s/e. what should i do as i don't want to be lumped with emergency tax.
thanks.

Bean_Counter

dandare wrote: »

hey folks i hope someone could help. i have been working as a self employed photographer for 1 1/2 years and have just started a temp contract f/t for 6 months. the employers have been asking about a p45 but as far as i'm aware you don't get one for s/e. what should i do as i don't want to be lumped with emergency tax.
thanks.

Ask for a P46 (can be downloaded of HMRC) website and complete accordingly. Depending on which box you complete, this will get you back on a decent tax code.

villeroy1502

If you are self employed you should only supply an invoice which would be a gross figure with the relevent details eg address of the business.

Therefore NI numbers & P45/46 don't come into play, although you may be asked for your tax ref number as part of due dilligence (ie. so the client doesn't incurre your tax liability chould you not pay it)

Before you engaged in this contract did you not issue Terms & Conditions (eg payment arrangements etc)? This would have stopped this situation arising.

To be defined as Self Employed there is a status test, which my accountant sent to me recently:
[FONT=&quot]Status Tests (a balance of)[/FONT]

• [FONT=&quot]Can you send substitute to do the work? [/FONT]
• [FONT=&quot]Is work carried out for more than just one or a very small number of clients? [/FONT]
• [FONT=&quot]Are invoices raised by reference to the job rather than hours worked? [/FONT]
• [FONT=&quot]Do you use your own equipment? [/FONT]
• [FONT=&quot]Are materials supplied by you? [/FONT]
• [FONT=&quot]Is public liability insurance in place? [/FONT]
• [FONT=&quot]Can you work at times to suit you? [/FONT]
• [FONT=&quot]Is their a financial risk if you do the job wrong? [/FONT]
• [FONT=&quot]Is holiday and sick pay paid to you by the client? [/FONT]
• [FONT=&quot]Do you have the option to turn down work offered and does the client have the option not to offer work? [/FONT]
• [FONT=&quot]How long have you been working for the client? [/FONT]
• [FONT=&quot]Does the client control how you do the work? [/FONT]
• [FONT=&quot]Do you work from your own premises? [/FONT]
• [FONT=&quot]Do you correct defective work in your own time, at your own cost? [/FONT]
• [FONT=&quot]Is there a notice period to end the arrangement? [/FONT]
• [FONT=&quot]Is each side obliged to offer work and accept the work? [/FONT]
• [FONT=&quot]Are any company type benefits provided to you by the client? [/FONT]
• [FONT=&quot]Does your company advertise your services elsewhere? [/FONT]
• [FONT=&quot]Does your company have its own business stationery? [/FONT]
• [FONT=&quot]Are invoices raised for all work? [/FONT]
• [FONT=&quot]What was the intention of the parties in forming the contract? [/FONT]

Sorry to be so long winded, but recently I've had to go through this little hoop. I'll never be PAYE again, not even on a contract.

Hope this helps

dandare

sorry i may not have explained myself clearly. i'm not exactly sure how it works as, i'm on this temp. contract as a full time employee, not s/e but i was s/e for 1 1/2 years previously, all paid up, and will be s/e again when the contract ends in december. i somehow imagine things are going to get messy?

Bean_Counter

As a finance director of a construction company, I go through the employed v self-employed thing on a regular basis with subbies.

Dandare, have a look at:

http://www.hmrc.gov.uk/pdfs/ir56.pdf

based on HMRC criteria.

Gut feel tells me that you are employed, which can be no bad thing. Holiday pay, sick pay...

HMRC don't care about any contract. They just concern themselves with facts (as they see it at least.)

The good news is that any exposure is with the employer and not you. The burden of getting this right is with them.

If you have trouble discerning which advice to take from this forum, you can always speak to HMRC...

dandare

thanks beancounter, i agree with what you posted. i'm def classed as employed, it's the local council( museums & galleries). but what i would like to know is what do i give this new employer instead of a p45 so i don't go straight onto emergency tax?

dandare

sorry p46 just saw it on your other post. i'll look into it.