Self Employment

[borderboy 80]

Right here we go.... Basically im looking at start up on my own as a self employed carpenter, working through agencies. i have my relevant qualifications, NVQ level 2. I have been googling for days, and i am struggling to get my head around the whole tax system and relevant documents, so i was hoping some one on here might be able to help me out.

 

As i understand it i need to register with HMRC as selfemployed withing 3 months of starting.

I need to get my CSCS card and public liability to be able to work on alot of sites (more on that later)

WTF Is CIS...? can i be registered to recieve payment through that system, and have my tax and NI contributions taken from there, as well as being payed and contributing my self through self assessment...?

Also does HMRC care if i earn money sub-contracting in another area as long as i declare it...? i.e my dad is a self employed window cleaner, and would be able to give me some work, would i then be able to pay tax & ni on that, or would i have to find another way around it....?

 

Any help would be appreciated...

 

Thanks

Charlie

[riohog 5,621]

best bet is to ring your local tax office they will put you right

[AL BUNDY 45]

get yourself a c .a.

[scothunter 12,609]

the tax system has all changed now charlie i used to e on the 714 system (think thats what it was) you paid your on tax and national insurance.however thats changed now its a bloody minefield i agree go in and speak to the tax office they will put you right.its one thing you want to get right as the tax man is a c**t i know lads that have been cleaned out and had to sell their houses for trying to be a bit shady.or not knowing they were in the wrong.atb with your new venture though young man

[Dosser 52]

Get a good acountant, keep acurate (ish) records and receipts, let the acc/nt sort it all out.

If you are subcontracting, phone around a few firms and ask what they would require if you were to work for them. personaly i wouldnt ask the tax office as they tend to overcomplicate things, though im told they are very helpful. best of luck.

[lamping-lad 160]

Right here we go.... Basically im looking at start up on my own as a self employed carpenter, working through agencies. i have my relevant qualifications, NVQ level 2. I have been googling for days, and i am struggling to get my head around the whole tax system and relevant documents, so i was hoping some one on here might be able to help me out.

 

As i understand it i need to register with HMRC as selfemployed withing 3 months of starting.

I need to get my CSCS card and public liability to be able to work on alot of sites (more on that later)

WTF Is CIS...? can i be registered to recieve payment through that system, and have my tax and NI contributions taken from there, as well as being payed and contributing my self through self assessment...?

Also does HMRC care if i earn money sub-contracting in another area as long as i declare it...? i.e my dad is a self employed window cleaner, and would be able to give me some work, would i then be able to pay tax & ni on that, or would i have to find another way around it....?

 

Any help would be appreciated...

 

Thanks

Charlie

dont bother, ive been doing it 11 years and the sooner i get out of it the better

[yorkshire 151]

ring / or go to tax office . tell them your a joiner wanting to work self employed / subcontract and you need a c.i.s 4 card (construction industry scheme) and a u.t.r (unique tax reference) . you will pay your tax at sorce ie contractor/agency and you will get a quartly bill for your n.i . keep all your wage slips , keep a record of where you work and mileage . to get the correct advise and how to sort your own accounts and stuff contact business link .

 

http://www.businesslink.gov.uk/bdotg/action/home

[Fat-Ferret 857]

Its straight forward...

 

Like others have said, you need a CIS (Construction industry scheme) registration, as well as a UTR, the UTR is just a reference number. When you do work for anyone as a subcontractor they deduct tax at 40% from you and give you a CIS voucher which you keep, and you pay your own NI quarterly. When your accountant tallys up your expenses at your year end, such as tools, work wear, equipment, phone, use of office etc...He works it against all the CIS vouchers you have collected during the year.

 

The 40% tax the contractor takes from you and pays on your behalf is usually more than you need to pay, so you usually get a refund as you will have paid more tax than you should have, its a back to front way of doing things, designed by the revenue as they were loosing too much the other way. If you are doing non CIS work for your father, you can add that to your earnings along with your CIS or work for him voluntarily when your own work is quiet....

[the_stig 6,614]

i had 25 year of it i had a good bookeeper / accountant he used to sort it all used to ring me with the lads wage details did all my vat and year end a good accountant is a godsend .. these days i do markets and car boots only trouble is i keep losing from receipts and stock book ..

[yorkshire 151]

Its straight forward...

 

Like others have said, you need a CIS (Construction industry scheme) registration, as well as a UTR, the UTR is just a reference number. When you do work for anyone as a subcontractor they deduct tax at 40% from you and give you a CIS voucher which you keep, and you pay your own NI quarterly. When your accountant tallys up your expenses at your year end, such as tools, work wear, equipment, phone, use of office etc...He works it against all the CIS vouchers you have collected during the year.

 

The 40% tax the contractor takes from you and pays on your behalf is usually more than you need to pay, so you usually get a refund as you will have paid more tax than you should have, its a back to front way of doing things, designed by the revenue as they were loosing too much the other way. If you are doing non CIS work for your father, you can add that to your earnings along with your CIS or work for him voluntarily when your own work is quiet....

 

your basic tax will be 20% deduction , if you get a job that takes you into the higher tax bracket , get me a job

[AKA-BRINDLE 879]

Some good advice above...but its 20% tax deducted...NOT 40%

[deanflute 550]

f**k 40% tax, It's 20% on the money I earn

[Fat-Ferret 857]

I stand corrected...It is 20%

[borderboy 80]

thanks for the advice, its helping alot...

 

So about public liability, whats amount is everybody coverred for, 2,000,000, 5,000,000...? also what about defective advice, loss of works, ect ect...? What is the norm?

 

YIS

Charlie

[lamping-lad 160]

thanks for the advice, its helping alot...

 

So about public liability, whats amount is everybody coverred for, 2,000,000, 5,000,000...? also what about defective advice, loss of works, ect ect...? What is the norm?

 

YIS

Charlie

2 million for public liability