The Great 'Working for Yourself' Hunt

Pamjohnson

Be aware that the Class 4 NI contributions you pay when self employed do not cover you for unemployment or Job Seekers allowance if you stop the business. I have closed my business and am now job hunting but can't get any benefit as husband working and my NI contributions have been too low. You probably won't think about this at start up by make sure you understand what Self Employed NI conts cover you for.

Frugaldom

tryfive wrote: »

OTOH, it can make you look like a fly-by-night cowboy: "Why is this guy, who works for himself and with no employees, hiding behind a PO box?!"


Depends on how your customers (and potential customers) look at things, and the industry you're in.

(Incidentally, you can easily get the real address behind any PO box by simply asking the post office!)

In defence of PO Boxes and 0845 telephone numbers.

I have used a PO Box number (and 0845 telephone number) for years. For some, it's the only option for a longterm business address (and telephone number). When renting on short assured tenancies, constant changes of address and telephone number look worse, in my opinion, than a PO Box number and 0845 telephone number. Neither has caused me any problems, whatsoever, but I have nothing to hide. I don't think twice when posting anything out to a PO Box because I know that the recipient has had to register and provide proof of identity in order to use the facility. And my 0845 number isn't protecting my phone number, it's ensuring that calls reach the correct person and not the next occupant of a previous address.

Frugaldom

Pamjohnson wrote: »

Be aware that the Class 4 NI contributions you pay when self employed do not cover you for unemployment or Job Seekers allowance if you stop the business. I have closed my business and am now job hunting but can't get any benefit as husband working and my NI contributions have been too low. You probably won't think about this at start up by make sure you understand what Self Employed NI conts cover you for.

The above was explained to me in 1985 when I first registered as self employed but, at the same time, it was recommended I have personal income protection because of the mortgage. A few years later, I was in the unfortunate situation of damaging my back, meaning I was flat out and couldn't do a thing for a couple of weeks - no income. The insurance company claimed that since I was self-employed and still fit enough to answer a telephone, I was not completely incapacitated! A lesson well learned, in my book.

stphnstevey

stphnstevey wrote: »

Finally got through all pages!

Some good advice - somone mentioned http://www.msofficeaccounting.co.uk/downloads1.aspx

Has anybody used this software and is it any good?

No body tried this FREE Microsoft accounting program then?

harryhound

I can see the advantage in being in the simple flat rate on turnover scheme as a SOLE trader.

However if one gets too much work and has to subcontract to someone who is VAT registered; then just putting a mark up on the deliveries, the numbers could work against you.

Has anyone any experience of the dilemma? ,

harryhound

I've survived a tax inspection (caused by my very odd cashflow) and a VAT inspection. NB being on the flat rate VAT scheme makes a VAT inspection MUCH less painful.

I can see the advantage for a SOLE trader in being taxed at a rate below 17.5% simply on turnover HOWEVER if one gets busy and has to subcontract to someone else who is also VAT registered, simply adding a mark-up; then the numbers work against you. How easy is it to switch schemes as a business expands, or the owner gets old and lazy ?

If your clients regularly pay late, try sending the invoice in with a 10% mark up and a note saying '10% discount for payment by xxxxx date' - surprising how it motivates accounts departments.

I can remember getting in a tangle with sending out invoices for (say) 100 GBP and accepting (say) say 95 pounds for prompt payment.
The problem was that the 100 contained 14.89 of VAT.
At that time I should have calculated the VAT on MY prompt discount price 85.11 less 5 percent to create a VAT amount of 14.15 and an invoice total of 99.26.

Is this still the rule for prompt payment discounts?

harryhound

Dustangle wrote: »

That is shameful. Britain made you and it is wrong to rip it off.

Seriously,
There is no morality in tax, only on how the tax is spent.
If you are proud of the contribution you made to a failed war that was meant to reduce oil prices and did exactly the opposite, then perhaps you would like to make a voluntary extra contribution.

After jacking up the taxes, this government is now resorting to deficit financing to try to bale out the over borrowed, by resorting to taxation by inflation and printing extra money.

Harry.

PS I hope you don't shop at Tesco.

welshasiancheapskate

Hello MSErs,
I would like some advice/opinion for the following.

I have recently started doing interpreting for two agencies and they have told me that i now go by the status of being "self-employed" even though one of my agency is in charge of paying me. (I dont invoice them out of my own will).
As some of you may be aware interpreting jobs are miscellaneous/work as and when needed.
I have declared my job to Inland revenue but am I still to pay 1/3 to the tax man irrelevant of how little or how big i earn. My agency provides me with a remittance order per month with the pay of jobs that month by cheque.

I also work permanently in an after school care only during school term time where my pay is not more than £31.00 per week, for this job i hold offical payslips.

Please if anyone can advice me of what I am entitiled to pay etc...


THANKYOU ALL IN ADVANCE


WACS xxx

harryhound

You can be employed and self employed.
There can be "advantages" in minimising the National Insurance you pay over all.
The agency can create a "pretend" self bill invoice as though you had sent it to them and then pay you.
To understand your personal position you have to understand the way that NI and Tax work (It is all tax really but calling one set of figures "insurance" is a way of confusing the voters). Every thing should come out correctly when you fill in a tax return each year.
There are two other complexities:
For your self employed earnings are you entitled to deduct expenses from your taxable income?
Might you personal situation entitle you to tax credits?
Unfortunately I get the feeling that your overall income does not justify the expense of an accountant, so can your citizens advice office or tax advice office help?
(unfortunately I have been fed incorrect information by the clerks in the latter in the past)
Is there a smart @rse also working for the agencies who understands the system and who can help. In a group of workers there is usually someone who understands the tax & NI, just as there is usually one who understands computers.:D

welshasiancheapskate

Thankyou Very Much For The Advice Harryhound.
I Am Actually Clueless To All This As This All New To Me, I Have Never Been Self-employed...
Therefore This Is Not Making Any Sense To Me. Perhaps I Should Contact The Tax Advice.
Your Are Right My Company Could Eb Making Pretend Invoices.
I Am Really Worried As I Do Not Want To Get It Wrong And End In Trouble.

Tia
Wacs