Is it better to be employed or self-employed in this situation?

[PatsysPyjamas]

I am self-employed and work two days a week. I an interested in applying for a job for the other 3 days. Will this make tax complicated? Would it be better to ask the second job to hire me as a freelancer rather than staff? I am not a higher earner, if that makes any difference.

Thanks in advance!

I'm not an expert, but I've done this before and it shouldn't be complicated at all. For the 3 day a week job you just go on their books and that side of the tax is all sorted for you. You continue with your self employed work as usual.

When it comes to filling your self assessment return there should be a page asking you if you have any 'employed' earnings during that period and you fill them in there, then they calculate your overall tax position for that period taking both into account. Just make sure you keep all your payslips, P60s etc.

If the 3 day a week job is to be completed on their premises using their equipment, you might have a problem doing this on a freelance basis from the Inland Revenue point of view. I don't know what the exact rules are but they should be on their website somewhere.

Freelancer gets no maternity rights, sick or holiday pay. However if you are self employed you will be able to set more expenses against tax so get more money. As said above you may not have a choice. I am going to a meeting tomorrow. I am very much self employed, I decided when the meeting would be. I pay my own expenses. If I had to be somewhere no the same days every week it would be harder to convince HMRC I were self employed.

That's interesting! The self-employed job I do two days a week is in an office with set hours etc. It developed out of a home-based project I worked on for the company, but is possibly now more like a 'job'. Is that not allowed? I have wondered before about asking to go on the payroll, but I would be worse off by doing so (although would have benefits of sick pay, holidays etc)

Here you go - should hopefully give you a better idea:

www.hmrc.gov.uk/employment-status/

You have to remember about 1 in 1000 people only or even fewer whom HMRC might think are really employees are never even considered or looked at so have no problem either way. I am giving a talk all day on Tuesday for one company that does not make me an employee even though they choose the place, whereas if I did it every week on the same day there is more chance.

If I were you I would try to have all the roles as self employed but do remember to save up your own tax so you aren't caught out having to find it all at once in July and January each year. I set aside a twelfth of what I receive each month into a separate account for later tax bills (plus may VAT as I earn enough to have to charge VAT).

Thanks for these helpful replies and sorry I have been so slow in coming back. I'm a bit of a weekend mner! I checked the guidelines and I reckon the project I am doing could be classed either as a job or a service, so it looks like I am okay on that front. And I do do other jobs which have nothing to do with this company, so I think it is correct that I am a freelancer.