self employed

[dom brennan]

hi well I'm 18 and an apprentice coming at the end of my 2 years (level 2) and my boss has told me i will need to go self employed but i will still work with him to get though my gas next year. i was just wondering will i have to pay tax and national insurance and is there any grants or anything out there, thanks dom

 

[Chalked]

Don't think you can work for the same person all the time and be classed as self employed. The tax man will go after your employer.
try and convince him to keep you on the books until into your early 20's
but if your are going to go self employed, the first thing to do, will be to go register for a UTR number, this is so your employer can subtract the tax ( 20%) off you. Once you have registered you will need to set up a direct debit to pay your nstional insurance. This can be done on the government gateway site.
If he makes you go self employed you will need at least £2.50 an hour more to cover holidays and accounts. If you have toro vide your own van, this would need to be more.
Far easier at the moment to stay employed. You have a lot more rights.

 

[AWheating]

if it was me i would say this to your gaffa "if i go self employed then i will need alot more money to cover the costs, or im off to find a better offer", you really want 40% more that you think you need.

 

[kris]

Hey domm go self employed and never look back,,, if you are sub contracting to your old boss then chalkeds right hed have to pay your tax but you can also charge him more than he was initially paying,, only down side is all is up to you ie gas safe reg fees public liability etc once u get the hang your laughing but it can be daunting for a start best of luck mate

 

[Leemckie91]

The same happened too me, i had to go self employed, so had to pay tax out of your wages, so when you're on an apprentice wage, you get even less. You're not ment to go self employed and work for the same person i dont think, but i did and nothing got said, just send him an invoice every week, If thats the only way you can get your qualification, then do it

 

[Killy Bing]

Tell him he will need to pay you through CIS to cover your backside and to make your accounting easier

 

[Ermintrude]

CIS is a lot easier and if you get scrap declare that as an income then hmrc can jog on!

 

[Sag]

CIS is the 'employer' responsibility not the 'employee'.

That said, if you read HMRC's CIS book I'm sure it says CIS for plumbing is only for installing a full system, so loads of odd jobs fixing leaks etc would not be covered.

Get yourself a decent accountant to make sure all is done correctly. Beats being fined.

 

[Millsy 82]

I would be a bit concerned why he wants you to go self employed? I would of thought this would just be to make his life easier (doesn't have to pay holiday, sick, pli, gas safe, van, fuel, insurance, additional training and probably the biggest if it goes quite he can drop you like a stone and have no come back)

 

[MOSSEP]

I would be a bit concerned why he wants you to go self employed? I would of thought this would just be to make his life easier (doesn't have to pay holiday, sick, pli, gas safe, van, fuel, insurance, additional training and probably the biggest if it goes quite he can drop you like a stone and have no come back)

Thats exactly why I like to use subbies. You make it sound negative but as an employer its a sound business choice.

If he's getting more per hour as well - which he should - and he still get gas training then it sounds like a good deal. Better than getting half qualified and having no job to finish the final bit.

 

[dom brennan]

I'm not really bothered about the money i just want to get gas safe, i think hes doing it this way so i have to pay my own tax.

 

[MOSSEP]

He has to pay your tax either way, what he wont have to pay is employers NI contributions which will increase as your wages increase.

 

[dom brennan]

i only get paid £105 so thats not high enough to pay tax or NI, because I'm going into my 3rd year i think he has to pay me a bit more

 

[Ray Stafford]

i only get paid £105 so thats not high enough to pay tax or NI, because I'm going into my 3rd year i think he has to pay me a bit more

How old are you Dom?

 

[dom brennan]

18 ray

 

[MOSSEP]

i only get paid £105 so thats not high enough to pay tax or NI, because I'm going into my 3rd year i think he has to pay me a bit more

Per week? seems quite low for 18, doesnt min wage apply? Maybe thats why he wants you self employed so he doesnt have to start dealing with NI contributions.

 

[dom brennan]

I've always been paid under min wage but i never complain, I'm lucky to have someone to teach me, we very often do 12hours or more a day

 

[Ray Stafford]

Look at this page. Whilst you are an apprentice and Under 19, the national minimum wage is only £2.68. The moment you turn 19, then it shoots up to £5.03 - thats nearly double.

I expect that this is what is concerning him. I don't think that it is legal to try to make you go self employed, and if HMRC investigated, I don't think that your situation would pass the test.

The problem is finding a solution that works for you both, is legal, and doesn't just end up with him sacking you to get rid of the problem. For you, the best result is to be worth more than a fiver an hour to him!

 

[dom brennan]

I'm just a bit worried about my gas because if I'm self employed I'm not working to anybody so will he still be able to sign my gas off for me or not