Self Employed advice please?

Question

I am going to be working for a company but they want me to be on a self employed basis. I will have to travel 25 miles per day, in total, to and from the office-am I right in thinking that I will be able to claim 40p per mile on my tax return? I will only be working part time (15 hours a week -3 hours a day) I will be paid £9 per hour..so by my calculations I will need to deduct £50 a week for travel expenses - leaving me with £85 profit. Is this right as it seems that I will probably have no tax to pay as I'm allowed more than this amounts to on my tax code?

Answer 1

Self employed can claim more expenses, however they can't claim (most) state benefits ...

For Tax, check out the HMRC web site for Self Employment ..

They do free 'workshops' ... I highly recommend you attend one before paying through the nose to some "Professional Adviser" .. (see 2nd link) .. they will also explain the difference between genuine self-employment and 'ghost' employment

Answer 2

if you become self employed your tax code changes, you have to pay group 4 national insurance minimum payment currently about £28 every three months(of course this gives you no benefits unless you make extra voluntary payments)
If you only work for one person /company the Revenue may take a view that you are not self employed but that the employer is trying to avoid their stautory duties. also if you claim travelling allowance it propbably wont cover your travel to and from one place of emplloyment.

Get a good accountant to advise you
or if you have no money contact your union or Citizens advice

Answer 3

I would question whether this is really a self employed position. You are working the hours idctated by the employer at a rate set by them. Some companies will say you are self employed to avoid having to pay NIC's, holiday pay, sick pay, maternity pay, etc.In short, you would have to bear the cost of holidays and sickness yourself.
I would contact HMRC and ask for a satus ruling on this arrangement before you accept anything.

Answer 4

Yes it's self-employment. I do that now as a contractor; have been for over 5 years. We often agree on a max number of hours per week and I manage them as I see fit or as per the needs of the company and what has been outlined in the contract. I charge a flat rate per hour. The organization takes no deductions. In the long run hiring you as a contractor saves the company a lot of time and money.

Answer 5

Advice Julie

Beware if you become self employed and you find that you don't like the job you won't get JSA or any beneifit for at least 6 months.