Can i ask my employer to opt me out of PAYE so i can pay my tax myself and not via the PAYE sysyem,?

Question

Im trying to find a way to hold onto the money for longer and pay the inland revenu at the end of the year, llowing myself to use this money in the meantine.

Is there any reason my employer shouldn't let me do this?

Answer 1

It is a matter of law whether you are self-employed or employed. There are basically seven badges of trade and all weigh differently in each situation. If you are thinking of doing the same job for the same employer but simply being self-employed you are not going to succeed in any argument with the Revenue. As an employee, you are an integral part of the business. You would have to fundamentally change your relationship with your employer. This would mean such things as:
Charging by the job, not getting paid by the hour or purely salary;
Having the right to send a substitute if you cannot or do not want to work any particular day;
Having the right to decide how you will organize and execute your work;
Having the right to accept new clients without your "employer's" approval;
Having the right to set your own hours.

If your employer is well advised, they will not agree to this because it will, at least, cost them some NIC. If HMRC audits their payroll and finds you being treated as self-employed, they will look to the employer for tax and NIC. Now, if you pay your tax and your class 2 & 4 NIC, they will still look to him for the difference between Class 2/4 and Class 1 NIC.

Enforced switching from self-employment back to employment can be messy. Please think very carefully before going down this route.

Answer 2

You will need to register as self employed first.

Answer 3

get self employment