Planning for potential self employment

cjv

I have asked my "employer" several times over the last couple of months to be put on PAYE (as agreed when I accepted the job) and receive random, different excuses each time I try and chase it up.

I have sent an invoice in order to receive my last two months wages. No problem being paid on time and in full, but I am being paid gross.

I think they may prefer me to stay self employed (so they save money) and although paid holiday each year would be great, I can do without it as I am just happy to have found myself a new job.

I do not want to be unprepared if I end up having to work out my own deductions long term, so these are the steps I am taking:

1. Keeping an organised file of all my invoices.
2. I will register for self assessment if I am not put on PAYE in the next few months.
3. I am putting £250 a month into a savings account to cover my Tax and NI

I think I have until October next year to register for this tax year 17/18?
Is there anything else I should be preparing for? I am new to the world of self employment.

Thanks

sjbrun

It really doesn't sound like you are self employed.

Could you send someone else in to take your place for the day if you want a day off for instance?

What make you think you are self employed?

cjv

sjbrun wrote: »

It really doesn't sound like you are self employed.

Could you send someone else in to take your place for the day if you want a day off for instance?

What make you think you are self employed?

I think I am not self employed either. I work on the same site each day and can not send someone else to cover my shifts. I have a set rota so it feels like I am an employee.

I just don't want to keep pushing to be put on PAYE and thought I could just register as self employed as I am paid gross?

I have only ever been employed on PAYE all my working life, so this situation has me a little confused. If eventually they put me on the payroll, what do I do to pay my Tax/NI from the months I have been paid gross?

I did do some googling, but am still unsure of my situation.

Kayalana99

cjv wrote: »

I think I am not self employed either. I work on the same site each day and can not send someone else to cover my shifts. I have a set rota so it feels like I am an employee.

I just don't want to keep pushing to be put on PAYE and thought I could just register as self employed as I am paid gross?

I have only ever been employed on PAYE all my working life, so this situation has me a little confused. If eventually they put me on the payroll, what do I do to pay my Tax/NI from the months I have been paid gross?

I did do some googling, but am still unsure of my situation.

I'm with you, stay S/E if you wish to keep the job. First things first, find a tax calculator online and work out how much tax and national insurance you need to pay monthly.

Add a little extra on (so if it's £100 a month, say £120 to cover yourself) and put it in a side account and don't touch it - you don't want to be in the situation of having a 2-3k bill at the end of the year.

Second with registering self-employed, you can also deduct expenses such as travel costs to work, business phone use etc if needed.

Third, I think you are supposed to register within 3 months, your April 2017 tax year doesn't need to be declared/paid until Jan 2018 (or Jan 2017 if you got paid in March 2017 if that makes sense, tax year runs from Apr - Apr)

It may be worth bringing it up with boss, just say you're happy to stay classed as self employed but just want to check that's ok as you're going to have to register shortly if so.

jobbingmusician

If you consider going down this route, also ring HMRC and check it's OK with them. They really don't like SE people working for just one employer! (Could you work round this by getting a few hours somewhere else as well?)

cjv

Kayalana99 wrote: »

I'm with you, stay S/E if you wish to keep the job. First things first, find a tax calculator online and work out how much tax and national insurance you need to pay monthly.

Add a little extra on (so if it's £100 a month, say £120 to cover yourself) and put it in a side account and don't touch it - you don't want to be in the situation of having a 2-3k bill at the end of the year.

Second with registering self-employed, you can also deduct expenses such as travel costs to work, business phone use etc if needed.

Third, I think you are supposed to register within 3 months, your April 2017 tax year doesn't need to be declared/paid until Jan 2018 (or Jan 2017 if you got paid in March 2017 if that makes sense, tax year runs from Apr - Apr)

It may be worth bringing it up with boss, just say you're happy to stay classed as self employed but just want to check that's ok as you're going to have to register shortly if so.

jobbingmusician wrote: »

If you consider going down this route, also ring HMRC and check it's OK with them. They really don't like SE people working for just one employer! (Could you work round this by getting a few hours somewhere else as well?)

Thanks for the advice. I think I will approach my boss next month and ask if he would prefer me to stay self employed.

I used the gov website calc for self employed, overestimated my monthly profits slightly and it is coming back with £281.45 Tax+NI per month, so I will put that aside in a savings account.

I travel to work by bus and could buy an annual ticket for £650. When I looked into it, I found information that I can not claim this as an expense if it is travelling to my usual place of work? I do buy my own uniform and footwear for work, so I think I can claim this as an expense.

Thank you for the info on the 3 month timescale to register. I will register myself next month after confirming things with my boss

@jobbingmusician Thanks for the advice, I am not looking for more hours elsewhere at the moment as I am working mostly nights 60 hours a week with a 3 hour travel time per shift. I feel like I am already at my limits in this regard, I am getting old