should i be self-employed?

Han

I was offered a job by a market gardener who has offered me full-time hours to work. He asked if i would work as self-employed or for him. It would be great to think that i work for myself, but i don't want to jump in before i find out whats best for me to do.

Thing is i don't know what the pro's or con's would be to work as self-employed. If someone could give me some advice that would be very much appreciated.

I have read http://www.hmrc.gov.uk/ for self employed persons. I was wondering about anyones personal experiences with it.

exprog

If I were you I'd check out the IR35 stealth tax.

The Inland Revenue only accepts 'self-employed' if you have multiple clients. So far as they're concerned, one 'client' means one 'employer' (even if the assignment only lasts a short defined period of time). So that means you get taxed exactly the same as if you are actually employed, under tax law, but under employment law you get no employee protection/benefit.

Savvy_Sue

If you're working full-time for one person, I'd say you were going to be employed by them - and it's not your decision, or his decision but HMRC's decision.

Plus employed is always simpler: your employer gets to sort out your tax and NI, your employer HAS to pay you for holidays, and you get at least Statutory Sick Pay if you're ill.

If you were doing a few hours for this chap and a few hours elsewhere it would need a little consideration, but from what you've said it's clear.

However, if in doubt phone your local tax office who are usually very friendly and don't automatically ask for your name!

Han

Thanks for advice, much appreciated

Pennywise

Don't forget that you need a higher hourly rate if you are self employed - as an employee, your employer would be liable for employers NIC, admin, training, H&S, insurance, holiday pay, SSP/SMP/SPP, provision of tools etc., but as self employed, he saves these costs. I always tell clients to negotiate at least 25% higher hourly rate for self employment than for employment to compensate for their saving and your additional costs/admin/hassle, lack of benefits, etc.

Savvy_Sue

Pennywise wrote: »

Don't forget that you need a higher hourly rate if you are self employed - as an employee, your employer would be liable for employers NIC, admin, training, H&S, insurance, holiday pay, SSP/SMP/SPP, provision of tools etc., but as self employed, he saves these costs. I always tell clients to negotiate at least 25% higher hourly rate for self employment than for employment to compensate for their saving and your additional costs/admin/hassle, lack of benefits, etc.

Yes, that's a very good point, so the person offering you this work won't necessarily save anything by NOT employing you, it will make things much clearer all round (and honestly the amount of work involved in PAYE for one person is not huge!)