Self Employed - the ins and outs?

[oobster]

Folks,

I was made redundant after 15 years as an employee of a large company last year.

I had an interview last week for a part-time self-employed position in a local company & I haven't a clue on what I'd need to do if I am offered the position.

Any advice appreciated!

Andy

[ewenm]

Part-time self-employed in a company? In what way would you be self-employed? Is it a contract for a specific piece of work that you would provide?

[oobster]

ewenm said:

Part-time self-employed in a company? In what way would you be self-employed? Is it a contract for a specific piece of work that you would provide?

I am being offered (if I am successful) an hourly rate with the promise of at least 2 days work per week assisting a manager by doing research mainly.

I assume this is way for them to avoid taking me on as an employee and having to give me holidays, sick pay etc.

[RizzoTheRat]

3 ways you can do it.

Sole trader - Notify HMRC you're sole trading, the company pay you, you do self assesment to sort the tax. Some companies don't like it though because if your tax status gets called in to question, they're liable

Limited company - Cheap to set up (£20 DIY or £100 if you want the accountant to do it all) but costs a little more to maintain (around £1k/year for the accountant seems to be usual). More tax efficient way of getting your money but if you're only working for 1 company you're likely to have trouble with IR35

Umbrella company - Company pays the umbrella company, umbrella compnay pay you but take a fee for sorting out the tax.

There's a very good guide to the advantages and disadvantages of each on http://www.pcg.org.uk/cms/index.php

[Eric Mc]

oobster said:

ewenm said:

Part-time self-employed in a company? In what way would you be self-employed? Is it a contract for a specific piece of work that you would provide?

I am being offered (if I am successful) an hourly rate with the promise of at least 2 days work per week assisting a manager by doing research mainly.

I assume this is way for them to avoid taking me on as an employee and having to give me holidays, sick pay etc.

"Self Employed" is actually defined in tax law as "trading" i.e. running your own business. For your self-emnployed status to be assured, you need to be able to demnstrate that you are running a genuine trading activity.
HMRC always insists that your tax status (i.e "Employed" or "Self Employed") is not a matter of "choice" but a matter of "fact".

[oobster]

Thanks guys - I've now been offered the position but I've asked if they are willing to take me on as an employee. My would-be manager is going to check & get back to me. Doubt it, but we'll see.