Unemployment On The Horizon
Discussion
Eric Mc said:
Nothing wrong with that. People in business cease trading all the time.
And when people cease trading they stop being self-employed and become unemployed. Or are you suggesting that doesn't happen Eric?Peoples' businesses might have gone bust or person might have a serious injury that prevents them from working for themselves - what happens then?
I was under the impression that as long as you have paid your Self employed National Insurance contributions for a minimum of 2 years that you were then entitled to claim certain benefits based on your contributions.
The term "self-employed" is a misnomer. The correct terminology is "trading on one's own account".
HMRC created the term "self employment" in an effort to simplify matters at the time "Self Assessment" came in around the early 1990s. In particular, they decided to call what should have been the "Sole Trader Supplementary Pages" on the tax return the "Self Employed Supplementary Pages".
Before then, the expression most commonly used was "sole trader". And, indeed, all the underlying tax legislation regarding "sole traders" refers to "trading" rather than "self employment". The test that needs to be applied to an individual to ascertain whether they are "in employment" or "trading on their own account" is often referred to as "The Badges of Trade Test".
The expression "Self Employment" is even used, incorrectly, to describe directors of limited companies.
And, even if you want to label me as pedantic, these expressions have clear and distinct meaning sin both general law and tax law - and if an individual gets muddled as to their correct status regarding their work, it can prove very costly.
HMRC created the term "self employment" in an effort to simplify matters at the time "Self Assessment" came in around the early 1990s. In particular, they decided to call what should have been the "Sole Trader Supplementary Pages" on the tax return the "Self Employed Supplementary Pages".
Before then, the expression most commonly used was "sole trader". And, indeed, all the underlying tax legislation regarding "sole traders" refers to "trading" rather than "self employment". The test that needs to be applied to an individual to ascertain whether they are "in employment" or "trading on their own account" is often referred to as "The Badges of Trade Test".
The expression "Self Employment" is even used, incorrectly, to describe directors of limited companies.
And, even if you want to label me as pedantic, these expressions have clear and distinct meaning sin both general law and tax law - and if an individual gets muddled as to their correct status regarding their work, it can prove very costly.
condor said:
I was under the impression that as long as you have paid your Self employed National Insurance contributions for a minimum of 2 years that you were then entitled to claim certain benefits based on your contributions.
ONLY in respect of your Class 2 payments. The class 4 NI you pay under Self Assessment gives you no benefits whatsoever - even though it is usually a far higher amount.Eric Mc said:
The expression "Self Employment" is even used, incorrectly, to describe directors of limited companies.
And, even if you want to label me as pedantic, these expressions have clear and distinct meaning sin both general law and tax law - and if an individual gets muddled as to their correct status regarding their work, it can prove very costly.
Those I know who are director of a limited company, including myself, describe themselves as an employee of that company.And, even if you want to label me as pedantic, these expressions have clear and distinct meaning sin both general law and tax law - and if an individual gets muddled as to their correct status regarding their work, it can prove very costly.
I know you can be a director without being an employee, but most I know are employed by their company.
Corpulent Tosser said:
Those I know who are director of a limited company, including myself, describe themselves as an employee of that company.
I know you can be a director without being an employee, but most I know are employed by their company.
They'd better not run around saying that either or they will find themselves on the wrong side of the Auto-Enrolment legislation.I know you can be a director without being an employee, but most I know are employed by their company.
I tell you, it's a minefield out there.
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