Self Employed?

Question

Can you be self employed but still work for someone else? And if yes, what is the difference? and advantages & disadavtages?

Sorry if this sounds dumb, but if you don't ask you don't get

Answer 1

There is nothing dumb about the question.

It is not possible for one to be self employed and at the same time be an employee. An example of a self employed person would be a plumber the works for himself. A plumber that works for,say, RotoRooter would be an employee.

Self employed persons generally account for their activities on their income tax returns by filing a Schedule C which become part of the return. Employees receive a Form W-2 at the end of the year that lists their wages and all the various withholdings (such as federal tax, state tax, etc.)

I hope this helps.

Answer 2

It's advantageous to be employed in that your employer will deduct your tax and national insurance contributions so you won't have to fill in a self assessment form each year (unless you have other earnings) and also your employer has to give you statutory paid holidays / sick leave etc. For this reason, some employers may in effect be employing you, but try to fob you off as being self employed so they aren't bound by employment law. There is therefore certain criteria which deems you to be an employee, no matter what your boss says. These are things such as if your employer tells you how to do your job, or provides you with the tools or vehicle for your job.

It's discretionary but if you are actually employed you deserve the benefits of the employment.

However, the advantages of being self employed are that you are your own boss and within reason, you get to choose which jobs to take on. If you are fully-contraced to a company though, most of the benefits of being self employed are lost and it's just like being employed but without the benefits.

Answer 3

You can only be properly self employed if you have no other job working for others. Your full time employer pays part of your NI and you pay the rest. Self employed and you would pay your own at a different rate.If you do additional work on your own time then all you should do is to declare these extra earnings on your tax return. If you fail to do so then the tax authorities could find out and you would then become liable for any unpaid tax that they asses you on. What ever you do keep it legal.

Answer 4

Yes.

Example:
If you are a Gardner you work for your customer.

Self employed: You don't get a salary or hourly wage. You have overhead. You have to buy your own insurance.
Open your own IRA/retirement plan.
Deal with all the problems with a job such as difficult customers.
It can be a lot of stress.
You are solely responsible for the success or failure of the business.
Do accounting and taxes for your business.
Set your own hours.
Your ideas are what count.

Employed By a company:
Hourly wage or salary. Insurance, 401K, resources for problem solving.
You have a boss. Good or Bad.
May not care about your ideas or brilliant thoughts.

Answer 5

You can work as a contractor under someone else. It is tricky for the employer to show you have a contractor status but can be done. Advantages - freedom of work hours, higher pay, deductions, less bossing from the boss. Disadvantages: no paid health care, no Workman's comp, no mileage for your car if used as part of the job, no 401K, no paid vacation.

Your contractor fee should be maybe 40% higher than you would make than as an employee. Many service industries use this setup.

Answer 6

My dad owns his own business but gets paid from other businesses he is considered a contractor. He also pays people for helping him and they are considered self employed contractors.
At the begining of the year he doesnt get a w-2 he gets a 1099. He doesnt take taxes out of his contractors checks it is up to them to pay their own. And the people he works for doesnt take out taxes for him he has to pay his own.

Answer 7

Its substantial using fact this determines despite if or not the corporation deducts tax and NIC frm the employees pay, despite if or not the mloyer desires to grant employers libaility assurance and despite if or not the worker is entitled to such rights as holiday pay, ill pay, etc etc. It additionally desperate despite if the countless discrimination regulations prepare.

Answer 8

i was self employed and worked for someone else.it just meant he was paying me and i was responsible for paying my own taxes and national insurance.