Setting up self employment tax

freelancepuddle

For anyone following this thread: I declined the position. I double checked and as an agency and a worker that would have to clock their hours and show evidence of the work I did, go to employee meetings in the office and wouldn't choose the work I would do each week, I would have a set amount paid each month and they would take a cut from my salary each month then I'm 100% an employee and not self employed and should be treated as so (on the payroll, having my taxes sorted by them).

They said it was my fault for not reading the fact that it's a freelance role but they highlighted they were devastated I've rejected it as I was their number one choice due to my experience and expertise. I've received praise from friends for declining the position and getting away from such a dodgy company.

If a recruitment agency or marketing agency (umbrella companies) find you a client to work for and they take their cut from your salary/pay, under UK law they should have you on the PAYE system and sort out your tax contributions. They take a cut to make sure you get your money each month from the client and sort out your NI contributions. If they want to take a cut yet expect you to file for self assessment, alarm bells should ring.

So for future preference if anyone has doubts about this - check with citizens advice and read the terms carefully. If you don't choose the work you do, you're an employee. If you receive a set amount of money each month, you're an employee. Unless you're on a retainer like a lawyer or digital creative could be. If you have to clock your hours on their system (time sheets) and show evidence of your work and answer to them, you're an employee. If you don't find your own clients to work with, you're an employee. If you were sick and they found someone to fill in for you, you're an employee. If you have to travel for employee office meetings, you're an employee. It seems obvious but people assume because the hours are flexible, that makes you self employed. Wrong. If you don't make a profit or loss from the business, then you're..you guessed it, an employee.

Thanks for your advice everyone and pointing this out to me. I very nearly signed up for self assessment without needing to do so. It's scary how common this is in the UK.