Stupid self employment question please

(12 Posts)
happynewmind Mon 21-Jan-13 10:42:58

Ok for the last three years I have been self employed with my own work.

As from this year I am still self employed but now contracted to provide a service for a company, I am NOT employed by this company and still am responsible for my own N.I and tax, I am not paid a salary, I am paid for work I do.

Does that mean I am now freelance? Or am I being thick!
And also as my work before was self employed under my own name rather than a business name do I need to inform the tax office I am now contracted to a company and my original work is now discontinued.

Help!

MrAnchovy Mon 21-Jan-13 14:14:31

"Freelance" doesn't have any meaning. As far as employment law is concerned, either you are employed or you are not. And as far as tax law is concerned, if you are not employed but are working you must register as self employed.

IF this new work truly is not employment, there is no difference as far as HMRC is concerned. I'm not sure what you mean about a business name - is this a name you are using for your business (in which case you can report that on your next tax return), or the name of the company that is engaging you (in which case it is irrelevant)?

happynewmind Mon 21-Jan-13 14:28:42

Sorry what I mean is when I was self employed doing my own work I just used my own name and did not have a business name as I did not have staff.

Now I am contracted to work full time in a different field altogether (but still self employed and paid only commision based) by x company.

So I do not have to ring HMR and say I was self employed as X but now I am self employed as Y?

MrAnchovy Mon 21-Jan-13 15:00:10

If the nature of your self employed business has changed then yes you do need to inform HMRC.

I have never seen a contract to work full time that is not a contract of employment.

ethelb Mon 21-Jan-13 15:05:29

Yes, there was a trhead about this happening to my Dp two weeks ago and you need to call up HMRC. But its easy and no big deal!

Tee2072 Mon 21-Jan-13 15:13:51

MrAnchovy will correct me if I'm wrong, I'm sure, but I thought if you were registered as self-employed, you weren't allowed to only have one client, as that as seen as a way for the client/employer to dodge PAYE.

Or am I misunderstanding and you're still working for others along with this new full time contract?

ethelb Mon 21-Jan-13 15:51:39

@Tee the client/employer is in the wrong yes, OP could chose to dob them in to HMRC if she wishes

ethelb Mon 21-Jan-13 15:53:47
badguider Thu 24-Jan-13 13:30:34

I believe you're now what is commonly called 'a contractor'. It is a common model in IT where i know a number of people who work for one client as self-employed, i believe they usually do it by setting up a Ltd company to invoice.

I am a self-employed sole trader and I need to have multiple clients to conform to the regulations about being employed on an s-e basis by my public sector clients (not sure if this is a public sector thing or across the board).

Francescarose Thu 24-Jan-13 13:48:29

Hmrc could deem that you are effectively an employee and this is made more likely by the fact that you only work for one company. Who provides the computer you work on? Do they pay for any training? Could they just say to you one day "sorry, there's no more work for you"? Does your contract set out a specific project you have to work on or is it just an indefinite contract for your services? All these things would be weighed up if hmrc investigated and if they deem you to be a quasi employee then paye and nics would be payable.

ethelb Thu 24-Jan-13 13:53:32

OP can you soeak to a union?

WilsonFrickett Thu 31-Jan-13 17:13:04

Theres a link on the HMRC website about this very person. There are questions like 'can you decline work/choose when to work/choose which tasks you wish to accept?' If the answers to questions like that are 'no' then you will basically be viewed as employed. Whereas I have one main client, but I pick and choose what work to accept from them, work at a time that is convenient to me, etc so I'm very definitely SE. (I have other clients too, but one major one).

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