Self-Employed

[amokwa]

Any IT contractors used a broker to re-finance a car purchase ? In my first contract and the broker is asking for the sub-contractors agreement.

[Eric Mc]

Are you really self-employed?

[amokwa]

Sorry Eric been busy in the datacentre. Do you mean IR35 ? Well I started contracting last July for the first time. Setup a Ltd Company which I use to invoice the agency.

That's about it registered with SJD though.

[Eric Mc]

amokwa said:

Sorry Eric been busy in the datacentre. Do you mean IR35 ? Well I started contracting last July for the first time. Setup a Ltd Company which I use to invoice the agency.

That's about it registered with SJD though.

You are most definitely NOT self-employed then.

The legal definition of being self-employed is someone who is trading in their own right AS AN INDIVIDUAL. You are not. You are operating a business through the vehicle of a limited company - which is an entirely separate legal entity to you as a person. In fact, the law looks on a limited company as a "person" in its own right.
It is important that you grasp the whole notion of "limited liability" and what it really means or else you could get yourself into an awful muddle - which could prove costly.

I assume that you have done all the necessary things that a limited company should do -

appoint an accountant

set the company up for PAYE

set the company up for VAT if appropriate

work out a strategy for remunerating yourself from your own company

ensuring that any contracts the company has in place with its customers have been reviewed to ensure the risk of IR35 being assessed is minimised. (It is also vital that the terms of any such contracts are strictly adhered to in day to day working practice).

careful note taken of all the legal deadlines associated with running a company such as -
submission of accounts to Companies House
submission of accounts and Corporation Tax return to HMRC
payment date of Corporation Tax due
statutory submission dates for employer's end of year returns (P35/P14)
atatutory submission dates for employer's end of year return of Benefits and Expenses (P11d and P11d(b)
payment date of Class 1A national Insurance due on any benefits

Every single one of the above tasks has a statutory filing or payment date associated with them and they all have fining, penalty and interest charges associated with missing any of these dates.

[amokwa]

Eric,

Many thanks for the update I suspected as much on some of them. Will book an appointment with SJD asap !