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Consultancy work
Comments
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To be fair, it may not be all one sided. I recall someone else, I think on here (who had a similar user name to the OP, but not the same person, I checked the history) trying to come up with the same wheeze - they would go self employed, and then they would be able to claim all sorts of tax allowances and expenses (like the commute from home to place of work). On the basis that a PAYE job at about £30k "cost them a lot of tax", and they reckoned that they could escape the tax by going self employed but not really.gettingready wrote: »Daku - I have a horrible feeling someone is having you on.
Can you give us more details? Based alone on what you wrote so far, this is something I would be very wary of to be honest.
Being self employed is not an easy option for those who want to keep more of their wages. There are costs, risks, and disadvantages to the status. And HMRC will consider whether someone is using the status as tax avoidance. It isn't a case of register and that's it - they will regularly consider the information that they are getting to check that the person really is self employed. There are no paid holidays, no paid sick leave or SSP, no pension, and no rights. And someone who had "just embarked on a new career" in consultancy who needs to go on a forum to ask about "invoicing, tax, allowances and anything in between" simply hasn't done their homework and had no idea what kind of difficulties they might get into. What if, three years down the line HMRC decides that you aren't really self employed and never were - and hit you with a claim for tax back for the full period? It happens.
And for someone who hasn't quite grasped the mechanics of it not being a salary nor an annual fee (the same thing), does that mean that you don't know how to enter into a contract, which wasn't on the list of essential things you need to know!
It's a shame that the OP hasn't been back. I do hope they are paying attention. Because I'm sure that a lot of this is not what they want to hear, but what they are proposing is so much more complex than they think, and they could end up in a lot of trouble here if they get it wrong.0 -
Spot on.
I was contracting for few years so well aware of the ins and outs - OP's post made no sense whatsoever.0 -
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gettingready wrote: »
Oh dear indeed. I fear the OP is heading for some scary territory. I do hope they have a substantial financial cushion for when this all goes pear shaped, or they are likely to end up bankrupt.0 -
OP will be changing threats/forums till he gets the answer he wants.. blessssss0
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