Self Employment Question (UK)

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Adrian
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Self Employment Question (UK)

Post by Adrian » Fri Mar 24, 2017 12:25 pm

Not sure if anyone can help. The situation is this: My son has been working for a care company since November and has just "discovered" that he is treated as self employed by them. I got him to check his payslip and he definitely has no deductions mentioned for NI or Tax.

So I have told him he needs to register with HMRC as self employed. He just called me at work to say that the HMRC website is a bit confusing and hes not sure what forms he needs to fill in. I have just looked too and have to say its a bit like that to me as well. He doesn't want to form his own company or be a trader, just register that he will be dealing with his own tax and NI contributions.

Can anyone who is self employed or experienced in this point me in the right direction?

Also, as far as I can ascertain, he shouldn't incur a fine as he hasn't passed a tax year end yet?

Many thanks
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Keith
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Re: Self Employment Question (UK)

Post by Keith » Fri Mar 24, 2017 12:36 pm

If he was paying tax at a previous employer he should have a tax office shown on either his P45 or P60, get him to give them a call.

If it was his first employment this link https://www.gov.uk/log-in-file-self-ass ... f-employed is quite straightforward.
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FrankBullitt
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Re: Self Employment Question (UK)

Post by FrankBullitt » Fri Mar 24, 2017 5:54 pm

He isn't due to pay tax yet, he doesn't need to file a return until 31/1/18 for the 16-17 financial year. He needs to keep a record of his earnings and then submit a self assessment form by end Jan next year, this will then tell him how much tax he owes.

Being honest, in the caring profession as a new-starter I'd suspect that unless he has other earnings in the current financial year he won't owe a penny but he still needs to submit the form.

He does need to be aware as a self employed member of the team he will have the pay enhanced NI contributions.

I'm afraid in order to keep an eye on this he probably needs to put some of his salary into a savings account for tax and NI, so it doesn't come as a shock next January.

Self assessment is quite easy though once he is set up


Adrian
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Re: Self Employment Question (UK)

Post by Adrian » Sat Mar 25, 2017 9:27 am

Cheers guys. Ive also told him he needs to check whether he is covered on his employers insurance. I suspect he is but its another thing to check.
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srperry
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Re: Self Employment Question (UK)

Post by srperry » Sat Mar 25, 2017 10:52 am

I think if he is covered by their insurance, and they are his only employer, he isn't legally self employed and the company is breaking the law! If that is the case the company is responsible for funding any debt he has to HMRC and not him. I would suggest talking to an employment-specialist lawyer or Citizens Advice Bureau...
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Rob
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Re: Self Employment Question (UK)

Post by Rob » Tue Mar 28, 2017 7:20 am

You can call HMRC and register as self employed. They will take all the details over the phone.

He will then have to fill in a self assessment form before then end of January next year if submitting online and pay any tax owed for the financial year ending this April. He will then also have to pay 50% as a contribution to next years tax bill and the same again in June.

As mentioned above he needs to set up a separate bank account and transfer the tax into there each month otherwise it could be a shock come next January.

One final thing which has been mentioned above - if all earnings come from a single source then in the eyes of HMRC he is employed by them...


Adrian
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Re: Self Employment Question (UK)

Post by Adrian » Tue Mar 28, 2017 9:38 am

Yes I've recommended he go speak to the CAB about it. Obviously he doesn't want to create any issues regards his employment but I agree he needs to know the right information.

The company he works for deals with the NHS outpatient care system where they don't have enough nurses to cope so they sub out certain patients to this company (and others). He only works for this company and it definitely is full time - he leaves the house at 06.45hrs and usually doesn't come home until after 21.30hrs, 5 days a week.
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