Employment/Tax Advice?

[red22]

I have been working as a Sole Trader for a number of years working for various companies and individuals. However over the last couple of years I have ended up pretty much working for the same company on a self employed basis. Recently there has been some questions over my self employed status. Having checked with the direct gov website, I will admit it looks like I should be more an employee rather than self employed.

Where does this leave me? The company aren't rushing to offer me a contract, neither do they want me to leave. Would I be right in thinking that I can still offer my services by way of being a Limited Company instead of a Sole Trader? And in that case, as I will be working almost exclusively for one company, will that part of my work fall under IR35? Assuming it does, does this mean I will be paying NI and Income Tax at the standard rate for that portion of my income?

Or is the above completely wrong and no matter what I or the company think, as far as HMRC are concerned I should be an employee.


Thanks.

[sumo69]

Whilst your status remains the same, a self-employed individual, all the risk is with the company paying you.

If you work through a ltd company, the risk will be your company's. If you really think that you would be caught under IR35, there is little benefit.

So do nothing if they haven't asked to change the current arrangement.

David

[red22]

I know what my tax position will be if staying Sole Trader or going Limited. Its more a case of me not wanting to be collared by HMRC at some point if they decided I should have being paying tax and NI as if I was an employee. There was also a passing comment to me from the Company that if they were audited, and it was found I should've been an employee, that any back Employer NI contributions paid by them would be recovered from me.

Looks like I'm going to have to find a new job.

[Eric Mc]

red22 said:

I know what my tax position will be if staying Sole Trader or going Limited. Its more a case of me not wanting to be collared by HMRC at some point if they decided I should have being paying tax and NI as if I was an employee. There was also a passing comment to me from the Company that if they were audited, and it was found I should've been an employee, that any back Employer NI contributions paid by them would be recovered from me.

Looks like I'm going to have to find a new job.

No, as Sumo said, it is the people who you work for who would have to find any underpaid NI.

[red22]

Although they would be responsible for employer NI's it was sort of suggested that they would seek to recover their "losses" via me.

Thaanks for the replies.

[Eric Mc]

And you can tell them that they can go whistle.

[Lotusgone]

The rules on self-employment are common to sole traders and one-man-band limited companies. In other words, are the circumstances of the engagement such that you are genuinely in business? As stated, if HMRC find you are employed, then it's your employer that has to cough up. With companies, they ignore the company and tax you on the gross income. A contract stating your self-employment isn't necessarily the answer either, because it's down to what actually happens.