Need help deciding whther to go self-employed

[spraymate1]

Sometimes the agency will take a small percentage of your wage to pay for them to sort out your tax, they sometimes use a third party to do this such as "Sterling", these companies take a commision off you for paying your tax, but you still need to sort out your own NI. I know its a lot to take in, you just need to decide if you want to be bothered sorting it out yourself, but in my view, its better in your pocket than theirs, just remember to keep all your receipts and your CIS statements, might be worthwhile thinking about an accountant aswell, yes its more money, but a good one can be worth it.

 

[Validis]

Geoffa, thanks for that. I was told by the agency that I'm not paid for taking holidays, and that I'm only paids for the hours I do that week. I'll have a word with them tommorow.

I've been trying to ring HMRC for the past hour, but keep getting told that all the advisors are busy. And now they're closed! I'll try again on my lunch break tommorow!

 

[VoltzElectrical]

if they are paying you PAYE then you are entitled to holiday pay. Check your terms and conditions as this is often factored in to your hourly pay, so you are effectively on a lower hourly rate.

Definitely go 'self-employed'. Get onto HMRC either on the phone, or at your local office (check online for the location).

Get a good accountant. Ask local friends or businesses who they use for a reputable one. You should pay around £200 for a yearly tax return. They will be able to advise you what is offset-able against your tax liability.

You need to claim MILEAGE on your vehicle as it is usually more cost beneficent than all the added associated costs.

Class 4 NI is calculated AFTER your tax deductible costs, including (all sorts - ask your accountant).

Remember that if you continue with the agency on the self-employed basis, then the charge they take off you for processing your payment (typically £10 is tax deductible).

Keep us posted how you get on.

Good luck.

 

[Des 56]

It used to be that to be classed as self employed, you had to either be providing materials and tools for the job, or pricing for the work

If you do neither,thats where the tax man clampeth down and makes ya go employed

Why dont you go to the tax office in person,take a suitable photograph with you and forms of ID and get the cis card there and then, or at least get it all sorted in readiness
I think you have to attend the tax office to get the card in person anyway

Dont be put off going self employed its not such a minefield to negotiate as you may think it is

I cant let this thread go without repeating my anger at the leaches who suck their pound of flesh out of the belly of our trade,yes those agencies parasites

Love or hate the EU,at least we may be seeing the back of these scroates after the 12 month suspension of the EU law ends in October,or so I'm told,then the temporary workers will have the same rights as full time and the usefullness of the parasites may be reduced,lets hope for all who are being sucked dry by those leeches that it is in fact the case

 

[VoltzElectrical]

I won't comment on the 'agencies' goad, even though I am not one. I will correct Des though, as the CIS cards have now been replaced with a simple UTR number.

 

[SirKit Breaker]

Des,

Things are a bit different with the CIS now. You no longer have to get a card, in fact as far as i am aware they don't give them out anymore. When i rang to join about 5 or 6 years ago, they gave me a 10 digit number, i asked about a card, they said we dont do them anymore, and that was that!

Cheers.........Howard

 

[Des 56]

I won't comment on the 'agencies' goad, even though I am not one. I will correct Des though, as the CIS cards have now been replaced with a simple UTR number.

And you are probably almost certainly correct sir
I still have mine in the drawer though

Thanks lads,I do know of the UTR because the builders deduct tax off me with it,lower than it could be but nevertheless my money
It was the case at one time,labour was non taxable at source until the years end, then the tax man did the dirty deed,but I agree its all changed in order to make sure they get their pound of flesh before we get chance to spend it nowadays

 

[GOODWIN]

Hey guys, I finally got my foot in the door and got my first job working on site, after a year of finishing my level 3 city and guilds.

I am working through an agency, and before I took the job just over a month ago, they said they can pay me £8.50 an hour on a self employed basis. I told them that i wasn't registered and they said they can then pay £6.50 per hour PAYE.

The company I'm working for seem pretty happy with me, and said the job lasts untill christmas, and that I will probably be there up untill then. The agency have also rang the company a few days ago to ask whether they needed me for the next few weeks, as they want to put me on another job. The company refused and said they wanted me to stay working on the current site. So, it seems to be looking quite well for me.

My problem is, I am curious on registering as self employed (the agency said as soon as i am, the pay will go back upto £8.50 per hour). The only thing is, I'm not too clued up about going self employed. I've spent a few hours on the HMRC website, trying to find out as much as I can, but still can't make much sense of it!

Keeping records of income and expenditure wouldnt be a problem for me. Am I right in thinking that if I were self employed, then I pay £2.50 per week for National Insurance, and then pay a lump sum each year for Tax?

If I became self employed, will I be better off financially? Or will the lump sum of tax that i pay each year just make it equivilent to working PAYE?

If anyone has some better websites that have infomation on becoming self employed, then I'd be very grateful! Thanks for your time!

self employed = no holiday pay, but ur getting screwed so whats too loose also find ur own work or take theirs

 

[1shortcircuit]

Agencies have got you by the Gonads I'm afraid. I have worked for quite a few and the trend seemed to be that you also need to register with a third party company just so that you can get paid (you have to pay for this privilege obviously) . This is something to do with the employment issue iirc? Unless you were registered as a Ltd company?

Being registered self employed and working for an agency means that THEY will deduct your tax at 20% iirc but you need to make your National Insurance Contributions.

Anyway, Register as self employed It is no different really. Just make sure you get an accountant and get them to guide you through it so that you don't fall behind and become familiar with how it all falls in to place.

An accountant will normally get you money back each year

 

[brucelee]

HI mate
ask the firm thats employing you to see if they would take you on as employee

 

[Validis]

Hey guys. Thanks for all the replies. I rang HMRC about going self employed. They told me that unless im being paid as a self employed person, then I am unable to register as self employed. The guy on the phone said that I should tell the agency I want to be paid on a self employed basis from Monday, and that on Monday, ring back HMRC and then I can register as self employed. He also said that I will be paying 30% Tax, untill I recieve my UTR number which will take upto 6weeks. (I don't mind this as I'll still be taking home £20 more each week then I am now anyway, AND he said I can claim this back, too)

So I sorted things out with the agency, and the agency guy seemed pretty annoyed that i was going Self Employed. After about 15 minutes of him trying to persuade me to stay PAYE, he gave up and said that from Monday I will be paid Self Employed. He did say though, that I need to find a Payroll company and register with them. He said he would text me the number of one before the days end (Friday), but I didnt get that text.

Am I able to use any Payroll company? Or does it have to be the one that he was going to text me over the details of?

 

[SirKit Breaker]

Hey guys. Thanks for all the replies. I rang HMRC about going self employed. They told me that unless im being paid as a self employed person, then I am unable to register as self employed. The guy on the phone said that I should tell the agency I want to be paid on a self employed basis from Monday, and that on Monday, ring back HMRC and then I can register as self employed. He also said that I will be paying 30% Tax, untill I recieve my UTR number which will take upto 6weeks. (I don't mind this as I'll still be taking home £20 more each week then I am now anyway, AND he said I can claim this back, too)

So I sorted things out with the agency, and the agency guy seemed pretty annoyed that i was going Self Employed. After about 15 minutes of him trying to persuade me to stay PAYE, he gave up and said that from Monday I will be paid Self Employed. He did say though, that I need to find a Payroll company and register with them. He said he would text me the number of one before the days end (Friday), but I didnt get that text.

Am I able to use any Payroll company? Or does it have to be the one that he was going to text me over the details of?

6 weeks for a UTR number.....they gave me mine over the phone as soon as i registered, it was a few years ago though. Make sure you only pay CIS on labour, you should get paid 100% of any materials.

Cheers.......Howard