I'm considering becoming self employed.

[Fnaar]

*Note, "tax-man" is not intended to be gender specific. Whilst I did contemplate using the term "tax-thing", I thought I'd keep my personal opinions out of the thread.

You big girl's blouse

 

[Hacienda71]

You big girl's blouse

Shouldn't that be big person's blouse

 

[Norm]

You big girl's blouse

Sorry to head off topic but I nearly lost a job in the late '90s because of that very bloody phrase! I was in a car driving through San Francisco and heading for Tahoe with some others from European offices and a British colleague said he wasn't sure how he'd get on at snow-boarding, so I told him not to be a big girl's blouse.

Three days later, when we got back to the office, I was dragged up before the CFO and asked to explain my sexist attitude. I really had no idea what he was talking about. After questioning, it turned out that the girl sitting two rows in front of me (we were in the back of a seven seater Chevy Suburban) had heard what I said and took offence. The CFO didn't appreciate me laughing at him, or telling him to "Get real, FFS".

Funnily enough (and to steer this back on topic) I contemplated self-employment myself for a while after that and I haven't worked for a left-coast based company since.

 

[skids]

You may have an issue,
and that issue is

IR35

bad karma

Agree that particular nasty piece of unworkable legislation that has cost HMRC more than it has bought in can be an issue. I'd suggest Rhythm Thief has a look at some of the resources available at http://www.pcg.org.uk. It's not only IT contractor related.

 

[Creamcrackered]

I seem to remember that one of the important questions with regard to IR 35 is whether you can set your own hours, i.e. if you have to turn up 9-5 to dig a hole you are effectively an employee and are caught by IR35, if you can dig it when you like as long as you get the job done you're a contractor.

 

[Spud]

You would have to make sure you could set off plenty of receipts to bring your tax bill down. If you find the only thing you can claim against is petrol, depreciation of a van , clothing , and household utilities you may have quite a heavy bill at the end of the year.If you are a Limited company you can work for the same employer for as long as you like but make sure the bills are monthly and paid on 30 day terms.

 

[colly]

I've been SE for years and years and years, and it is very wearing always having to be the one who does stuff, simply because you are the only one who is there to do it.

Money is crap, hours are long, and although you don't have a boss you do have customers, which amounts to much the same thing. There is never enough time in the day. There are ALWAYS things to attend to. And if you are not careful it can be a very solitary existence.

The saving grace is .........well I am not sure what it is but working for someone else now would be purgatory.

If I want to take time out and go for ride on a lovely day I can.
But of course .............................I don't, because I am the one who will be picking up the pieces of the knock on effect of being behind and delivering late and getting all the hassle of such things.

On the other hand I wouldn't have it any other way.

 

[Campfire]

Would you have the truck provided including maintenance, oils and fuel etc? £12 per hour doesn't seem to me to be enough. Don't forget you will have to pay your tax, nat insurance and an accountant possibly & provide annual accounts.

You're in charge of an expensive rig there so you ought to be paid the right price for it!!! (remember Mr Campfire used to run his own tipper, but had to buy it, maintain it etc and all the other costs.) He only made just enough to keep going & keep his premises going (which he still has now). It's a bit step & my advice would be to try to keep some cash in reserve if you can.

Whatever you decide to do, all the very best.

 

[colly]

Would you have the truck provided including maintenance, oils and fuel etc? £12 per hour doesn't seem to me to be enough. Don't forget you will have to pay your tax, nat insurance and an accountant possibly & provide annual accounts.

You're in charge of an expensive rig there so you ought to be paid the right price for it!!! (remember Mr Campfire used to run his own tipper, but had to buy it, maintain it etc and all the other costs.) He only made just enough to keep going & keep his premises going (which he still has now). It's a bit step & my advice would be to try to keep some cash in reserve if you can.

Whatever you decide to do, all the very best.

Also remember there will be times when you have no work and will not have any money coming in. The bills will however still need paying.

Your hourly rate should take that into account.

 

[Rhythm Thief]

I'd be pretty much working as I am now - ie, driving someone else's truck (which they maintain and buy diesel for) - I'd just be acting as my own driving agency with just me on the books. I can claim mileage for my travel to work, my phone (personal and business), clothing and protective gear, laundry, computer, office furniture and some other things I can't remember. Whether I'll do this or not I don't know - I'm an idle bugger at heart - but it's worth looking into. Thanks for all the advice so far ...

 

[wafflycat]

I'd be pretty much working as I am now - ie, driving someone else's truck (which they maintain and buy diesel for) - I'd just be acting as my own driving agency with just me on the books. I can claim mileage for my travel to work, my phone (personal and business), clothing and protective gear, laundry, computer, office furniture and some other things I can't remember. Whether I'll do this or not I don't know - I'm an idle bugger at heart - but it's worth looking into. Thanks for all the advice so far ...

That's a potential problem. Being self-employed requires a discipline that is different to being in an employed situation. I say this having been both employed and self-employed in my working life. Being self-employed requires the ability to not take a sickie, not take holiday, work 24hrs and more without sleep if that's what the job entails to get it done, no overtime, no boss to kick you up the rear end if you're being a lazy beggar..it really is down to you alone. As for claiming expenses - you can only claim legitimate business expenses. If you try to claim personal stuff not related to the business, expect the taxman to come down hard on you.

 

[SavageHoutkop]

Erm... to cut a long story short you get entitled to Basic State Pension if you've paid enough NI during your working life.

On top of Basic State Pension is an earnings-related bit, but if you are self employed that bit DOES NOT get added on for as long as you are self employed. If you are employed, part of your NI goes towards that extra bit of pension. (Unless you are in another scheme and you 'contract out' of the earnings-related bit because you're in the other scheme).

Although the government has plans in the pipeline to muck with the earnings related bit in the medium term future; so perhaps you won't miss out too much.

See The Pensions Advisory Service, and here you can get an estimate of what level of pension you have already got based on the NI contributions you've already paid.

 

[accountantpete]

The one thing I should have added RT is that setting up a Limited Company and paying a dividend saves about £2k a year net if you are earning say £30k as the tax on dividends is lower.

However there is nothing to stop future budgets changing this - indeed given current fiscal deficit it seems an obvious way of raising tax. If this tax break goes the costs asssociated with having an audit etc will more than wipe out the savings from the expenses that can be claimed.

I'd bear this in mind.

 

[Norm]

That's a potential problem.

I'd agree with that part but I would have called it because, from what you have written, you are not self-employed.

You will be, as you say yourself, RT, working under exactly the same conditions that you are currently working under and the taxman, if he finds out, will treat it as such.

There are a million shades of grey but, to me, you would be hosed.

 

[fossyant]

I'd be pretty much working as I am now - ie, driving someone else's truck (which they maintain and buy diesel for)

RT...... Massive issue here.............

They are supplying the means/materials for you to do the job - i.e. you are EMPLOYED......

Doesn't matter if you go self employed, if they get an inspection...they are screwed...... and maybe you a bit later..........

I know the CIS scheme bloody well, and even though I've left the 'industry' it is even affecting service industry now - even Education.....

I'm an accountant, and the HMRC will say you are employed..... you don't supply your own HGV, you can't send a substitute, they pay operating expenses.........not good fella........

CIS is very strict, but HMRC are moving out to get all organisations....gonna be a hell of a head ache............. SORRY.