Help! Advice needed for a self-employed new mum-to-be...

[SpootneFleurtnik]

Hi everyone, hope someone will have some good advice for me as I'm starting to get a little panicky!

I started my own community magazine last year for which I sell advertising, write the editorial and layout myself from home. I'm expecting my first baby in June (assuming it goes full term which there is some doubt about) and I'm really thinking I will need some help, particularly with the advertising sales.

It's only a small business and I haven't taken anything out to pay myself with yet so I would like to get a part-timer or second jobber with sales experience to work on a freelance, commission only basis - ideally someone who could sell advertising space to earn themselves some extra cash, perhaps for 15% of the booking value...

I'm not sure what the employment law around this would be though... would I become responsible for any extra benefits like sickness or holiday pay? Or, as a freelance role, would I just have to pay them for the sales they bring in?

Any thoughts or advice welcome. Thank you

Employed or self employed is defined using a set of Inland Revenue criteria, see: www.hmrc.gov.uk/employment-status/index.htm#1.
It sounds from the info in your OP like they'd be a consultant/freelancer, which would mean that you wouldn't be responsible for sick pay, holiday pay, etc: you would just pay them the commission.
There's also info on the Inland Revenue site about Maternity Allowance and the like, if you need it.

Best of luck to you. I started my business 5 years ago when I had my second little girl and it was very hard in the first couple of years but I love it now and it's so good to be able to be my own boss. x

Hi ladies, thank you for your answers - I was hoping the freelancer approach was as I thought.

As a supplementary question, do you know if we're allowed to put up posts that might be construed as a job advert? I was thinking of posting in my local group to see if there's any interest in the role.

I've got my maternity allowance form but I'm not sure I'm eligible because it seems to be calculated on your earnings - and I'm not paying myself anything yet! Bit confused about that.

Wow SittingPrettyBabysitters, that's good going. Is your talk name a clue to the business?

Hi

As long as the advert is clear "I require a self-employed sales executive" then I don't think there are any issues.

If you want to see how others advertise sales "jobs" have a look at www.peopleperhour.com. You put your advert on for free, and people bid for it. The freelancer pays the commission out of the agreed sum. I think it would work with commission only, assuming you pay them through the site once they have sold something. And some naughty people use the site as a way to meet people outside of PPH, ie put an advert on, then contact people and arrange something with them directly.

My only thought (and I might be flamed by people on here who do this) is what sort of commitment/service you will receive from somebody working essentially for free until they earn some money. I appreciate it sounds like you might have no choice, but it might be worth considering paying the min wage as a base?

Good luck with finding somebody great. I am guessing some MN's might also contact you.

WS

I assume you have not registered as self employed?

Call the HMRC newly self employed help line. Explain that you started working as self employed in September last year (I assume it was then) and you now realise that you need to register as self employed and pay your Class 2 National Insurance contributions backdated to then.

Once you have paid six months worth of Class 2 National Insurance contributions (they are only £2.50 a week for last year) you will qualify for Maternity Allowance at the maximum rate of £135.45 for up to 39 weeks (look at the form again, you will see that there is a separate section for self employment where you don't put in how much you earn). Beware that you can only work for 10 days while you are claiming MA (any day on which you do any work counts).

As a self employed person you pay tax and Class 4 National Insurance on the profits of your business (basically all the money coming in less allowable expenses), not the amount of money you take out of it and you need to complete a tax return for each financial year even if the business makes a loss. Business Link is a good place to start finding out more.

Hi MrAnchovy - I am registered as self-employed and have paid one lot of Class 2 National Insurance contributions. But I think the problem is that I can't stop work or the magazine won't come out. I'd like to line up a freelance sales person to help with that side of the business but I'll still have to deal with the editorial and I think that will account for more than 10 days over the period. Which is why I think I'm scuppered - a pain as I could really do with the financial help.

I completed a tax return at the beginning of the year which I think was to clarify that I wasn't self-employed at the same time as having a full-time job, and I have just received notification of needing to complete a tax return for the first year in business.

When you say 'one lot' of Class 2 contributions, do you mean 6 month's worth i.e. £65? Keep paying them and you will be fine. You have to tell HMRC about any days you do any work while receiving MA. You are allowed 10 'Keeping in Touch' days without it affecting your MA, after that they may only deduct MA for the days (in excess of 10) you work so it is still worth claiming (and appealing if they disallow the claim) - more information here.

Yes, I paid £65. That's good to know - thank you for your help :)