Self Employed

[Autonotiv]

Little info about what i am proposing to do (you may all laugh)

I am 17 at the moment (will be 18 at the end of april) at the end of may this year i may be taking on my first big job (large 2 storey extension) at this moment in time i work for a building firm 2 days a week PAYE(go to college 3 days a week) and do some work on weekends but not much.

If i take on this extension i would be on it full time 5 days a week so just a few questions for you;

1 - Would i be able to be self employed?

2 - Could i be a Ltd company?

3 - How do i go about it?

The in September i may be doing an apprenticeship in carpentry (if i can get one!!!) so i would then proberly work for a big firm like Barratt homes 4 days a week and go to college 1 day a week, and work every weekend.

So would i need to be self employed for the firm? because they may not like employing apprentice that is self employed!! they would proberly rather employ some one who is PAYE.

So basicly is it worth going self employed (if i can) for this one big job + other smaller jobs, or it there another option?

Hope it makes sense.

And

Thanks for any help.

[Eric Mc]

Who is your customer for this "one off" job?

[RichBurley]

If you are self employed:

The best bit of advice I can give you is this: make sure you've got all of the right insurances; Public Liability insurance if any contractors or public injure themselves on your job, and professional indemnity insruance to cover you, if the job goes tits up..

Edited by RichBurley on Monday 17th March 17:10

[Plotloss]

Hold up, you're planning to build a two storey extension, with a roof, flooring, all the structural bits on your own at age 17/18?

I admire your ambition, honestly I do but, really, are you sure?

[RichBurley]

We need a bit more information before we can properly comment. What, where, when, how etc?

[Autonotiv]

Yes plotless i have been building with my dad since i was 12 and i have also worked for firms, so i know what i am doing, its a simple little job, demolish exsisting garage, dig out new footings, get my mate and his team of brick layers in, put first floor joists in, pitch the roof, soffits and fascia, tile the roof, do all the flooring upstairs and down stairs + fit staircase, get the spark and plumber in, tack it, spread it, second fix carpentry (as much as can) then knock through take exsisting staircase out, fix up inside, knock some walls down + fit steels, finish plastering + second fix spark, plumber and carpentry, paint, lay carpet.


The job is for my cousin.

RichBurley said:

We need a bit more information before we can properly comment. What, where, when, how etc?

What do you mean? how am i going to build it? where the job is? when i start the job? how i will do the job?

[Plotloss]

Ahh right, so you'll be doing some of the work and subbing some.

Fair play, best of luck with it.

Setting up a company, fking absurd, red tape minefield, I'll leave that to the experts.

[Autonotiv]

Plotloss said:

Ahh right, so you'll be doing some of the work and subbing some.

Fair play, best of luck with it.

Setting up a company, fking absurd, red tape minefield, I'll leave that to the experts.

Yea, sub out the Brick work, plumbing and electrics, and thats about it, may get my chippie mate in to give us a hand but i doubt it!

i know it will be hard to setup a company, but it is my ambition, and i will make it work, just need the advice.

Edited by Autonotiv on Monday 17th March 17:34

[RichBurley]

Autonotiv said:

Yes plotless i have been building with my dad since i was 12 and i have also worked for firms, so i know what i am doing, its a simple little job, demolish exsisting garage, dig out new footings, get my mate and his team of brick layers in, put first floor joists in, pitch the roof, soffits and fascia, tile the roof, do all the flooring upstairs and down stairs + fit staircase, get the spark and plumber in, tack it, spread it, second fix carpentry (as much as can) then knock through take exsisting staircase out, fix up inside, knock some walls down + fit steels, finish plastering + second fix spark, plumber and carpentry, paint, lay carpet.


The job is for my cousin.

RichBurley said:

We need a bit more information before we can properly comment. What, where, when, how etc?

What do you mean? how am i going to build it? where the job is? when i start the job? how i will do the job?

I think you've answered most of that already! I don't think you've got any problems with the planning, and the exterise is taken as read, but I suppose the hardest bit is budgetting to make sure that there is enough cash flow to do the job, and have a profit margin to make it worthwhile. Then, you've cracked it! (But make sure you've got your insurances).

[RichBurley]

I guess a company is worthwhile if you're able to find consistently regular jobs to keep you busy. Why do you want it to be a company, as opposed to being a sole trader?

[Autonotiv]

RichBurley said:

I guess a company is worthwhile if you're able to find consistently regular jobs to keep you busy. Why do you want it to be a company, as opposed to being a sole trader?

what would be the benefit of being a sole trader?

[RichBurley]

Autonotiv said:

RichBurley said:

I guess a company is worthwhile if you're able to find consistently regular jobs to keep you busy. Why do you want it to be a company, as opposed to being a sole trader?

what would be the benefit of being a sole trader?

You don't have to DO anything to set up, you just get going. Why do you want a company?

[Autonotiv]

RichBurley said:

Autonotiv said:

RichBurley said:

I guess a company is worthwhile if you're able to find consistently regular jobs to keep you busy. Why do you want it to be a company, as opposed to being a sole trader?

what would be the benefit of being a sole trader?

You don't have to DO anything to set up, you just get going. Why do you want a company?

being a sole trader sounds like a better option, so all i need is company name and insurance.

what about tax?

[smartie]

You need to register for self empolyment within 3 months of starting, but you will also need to register for a CIS scheme if you're subbying some of the work.

Have a look at www.hmrc.gov.uk or go and see an accountant pronto!

[Autonotiv]

smartie said:

You need to register for self empolyment within 3 months of starting, but you will also need to register for a CIS scheme if you're subbying some of the work.

Have a look at www.hmrc.gov.uk or go and see an accountant pronto!

i haven't started the job yet luckerly but i want to get all the info.

will have a read, cheers.

[Piglet]

smartie said:

You need to register for self empolyment within 3 months of starting, but you will also need to register for a CIS scheme if you're subbying some of the work.

Have a look at www.hmrc.gov.uk or go and see an accountant pronto!

You beat me to it Smartie - the CIS is a bleeding minefield and I only have to touch the edges of it!

[smartie]

Piglet said:

smartie said:

You need to register for self empolyment within 3 months of starting, but you will also need to register for a CIS scheme if you're subbying some of the work.

Have a look at www.hmrc.gov.uk or go and see an accountant pronto!

You beat me to it Smartie - the CIS is a bleeding minefield and I only have to touch the edges of it!

Its an absolute nightmare, with, seemingly, the sole intention of issueing penalties! Very difficult to avoid, even when just employing the odd tradesman for a business!

[Eric Mc]

It's not worth setting up a ltd co for a one off project.

As has been said, you MUST notify the Revenue that you have started trading within three months of commencement.

You will need to start paying Self Employed Class 2 NI within that three month period.

You will also need to complete a set of accounts for your sole trading activity and a Self Assessment tax return.

If you are going to use Sub-Contractors, you really need to register with the Revenue so that you can administer the payments to these individuals correctly - deducting tax at source on the payments to them if required.

Edited by Eric Mc on Monday 17th March 19:10

[Autonotiv]

what happens if the client pays a sub contrator direct?

or example; i put up a stud wall, the client wants a socket in it. so i say i know a bloke who can do it, theres his number, and they get him in and pay him direct?

would that work?

[Eric Mc]

Yes it can - and this is how things are done often. Obviously, the work done by the other individual needs to be billed absolutely separately by him to the customer and not through you in any way.