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Self employed, or PAYE?


mscc1991

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Hi there, I'm pondering whether to be self employed or not. When and if I find some more work, if I work a few days a week for one employer, a day with another and a few days with another per week would I be best to be self employed, or PAYE? Never been self employed before so not sure if I can trust myself to assiduously put aside tax money each month!! It's unlikely that I'd be working from home but rather at various employer's premises. One employer has said he will put me on PAYE, but is that bad news for other prospective employers? Have seen some info out in the media that self employed people can't get bank loans etc now, is that correct? If so, what's the point of actually being self employed if one is going to be penalised by the powers that be?!! Sure would like some advice please! Thanks.
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hi you can contact the tax dept and say you want to become self employed and they will book you on to a course. When I went self employed I went ot it, was on the aldwych and It took you through everything you needed to know, it only lasted a couple of hours but explained how to calculate tax, what you can claim back, if it would be better staying employed etc, worth going along to and it was free.


I havent tried to get a loan since becoming self employed but doing the tax calculation was fine as long as you keep records(they take you through this on the course and give you examples on that your spread sheets should look like to make it as simple as poss for you.) and re tax whenever I get paid I take off the tax straight away and put the tax away into another account so your tax is there ready for you and when you finally do your tax and take off everything that you can claim for you should have a little bit left over in that account to either go towards next year or to treat yourself,

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I have been self employed for may many years and can offer the following advice and observations.

In that time I found myself for about 1 year working on PAYE in an office part time as well as being self employed for all my other business.


The Government do NOT want people to be self employed because they can't be sure of getting the money. I once had a contract to work in an office and the tax people came and immediately put me on PAYE. I walked out the door with them never to return because I did not want to be on PAYE but I lost about a month's (self employed) wages because that is how much the Inland Revenue decided I should have been paying in the time I was there, in taxes.


The Pros: you are responsible for yourself, you can have a lay in, and if you work from home you can work all night if you want depending on your business!

The Cons: you are responsible for yourself, you may have a lay in because there's no work! You can not claim any benefits except child benefit. I have probably lost a lot as a result (I earn very little) but I am 'appy.


All depends on what you're doing. But I would always recommend trying, because I absolutely hate the PAYE system.

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Open two accounts put half the earnings in one and the other half goes in the second account.


Live only from one account.


The other account goes to feed the thieving politicians, the crooked lawyers, the work shy, and all other forms of scrimshankers when you pay taxes.


Best of luck in your endeavours mscc1991.

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I have been self employed for 26 years, I have also taken "on the cards" jobs when THEY required, if you can hack it ( and it's a life style ) then all the way self employed. Last JOB as it were on the cards very good at 75k plus bonuses, very bad 40% tax NI plenty kick in the ba??s


I reclaimed every penny when I got out, the thing is good Tax advice (as against avoidance, they are vey close ) from a trustworthy accountant.


I love it, it's liberating but if you need THE SECURITY schtick day by month by year ( god help )then........think about it



HARD, you will need a "Marine commando " mentality



W**F


I've PM'd you

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Hi mscc1991,


To be classed as self employed the HMRC may want to see that you work in different places and choose your times of work. Being self employed also gives you more flexibility as PeckhamRose has said above. If you do choose that way it would be best to go on a course as Ludo has suggested in order to not make mistakes with your returns. I am an employer and also work with self employed people. If you do go PAYE then you will pay MORE NIC and your employer will have to pay that extra on top for you. If you are self employed then the NIC payable is less that YOU have to pay (different classes). Hope this helps. What happened to all of the accountants on the forum to give free advice :-S. Good luck.

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