Please can someone advise me? I feel really stupid to not know this ....

[nobusinessbrain]

OK, I feel REALLY dim having to ask this, so apologies first!

I have always worked for companies, so never had to think about tax, etc., but gave up work last year as I couldn't change my hours at work to allow drop off and collection at school.

A friend has suggested I do some work for her company. The pay is £10 per hour and I can do it at home. I am happy enough it is a genuine offer.

BUT, what are the implications for me? Do I have to register as self employed? Do I pay tax, NI etc.? I feel really stupid that I need to ask this. I know a few other people work for her too but I don't know them well enough to ask.

Can anyone advise me please? Thank you!

GOV.UK should give you most of the information you need.

I don't see why you can't speak to the other employees though, it would be a good ice breaker, I'm sure they'd be happy to help.

Yes you would need to register as self-employed, really simple to do. You would need to complete a self assessment (runs a year behind so just submitting for 2013 -14) and NI depends on other employments and earning levels. You would need to keep a record of earnings and expenses. I promise it is not as scary or complicated as you might think, I run my own business and am definitely challenged accountancy wise and have found this fine! PM me if you want to chat about it or want a point in the right direction! ??

Depends if it is a job or freelance/self employed work.....

I suggest you ask her. No point in registering as self-employed if she employing you and doing PAYE.

If self -employed you need to invoice her etc.

Ok ,
Register your self as self employed by calling the hmrc as soon as you start work .they will give you forms for self assessment and send you unique Utr number keep that while filing tax .you have to make some ni contributions too .citizens bureau is best to advise and so is hmrc self employed helpline

Hi, I work freelance, from home, and I invoice clients on a monthly basis. Starting out as self employed after being employed can feel daunting, but once you take the leap, it's really liberating, and it's not too scary once you have all the info to hand. You'll need to register with HMRC who will send all paperwork. You may want to get an accountant for your annual self assessment, unless you're confident doing it yourself. I pay NI monthly via DD. If working from home, you can claim tax back on a percentage of your utility bills, so keep them safely filed, along with any expenses like office materials. Good luck with it all!

I think you have to find out if your self-employed or not first - ask your friend on what basis you will be working.

Hi. I replied to this but it doesn't seem to have posted, sorry.

So, it is only about 5 hours work per week and I need to invoice. Is it worth it (although I might use it as a stepping stone and do other things for other companies if it works out)? How much NI will I have to pay? (Visions of having to pay out more than I earn...)

Thanks for all your advice.

You probably wouldn't have to pay NI as your earnings levels would be low. The whole tax and registering as self-employed can seem daunting but it is really easy. I just completed my tax return and with all that you are able to offset (working from home you can offset heating and electricity and car trips etc) I hardly had to pay anything, happy days ??

Two things spring to mind: 1) at 5 hours a week, your annual salary will be well below the personal tax allowance of £10k and definitely below the NI threshold so I reckon you'd keep everything you earn.

2. If you don't have any other clients, you're not self-employed, you are part-time employed. There are other criteria for self-employment (such as not being permanently based on one client's office or using their equipment). You say you may use it as a stepping stone to getting other clients... so this may qualify for you to be self-employed but I'm not sure how HMRC will view it. You can contact them to find out.

Unfortunately you and your employer don't get to choose if you are employed or self employed.
Check HMRC online to see if you fit the self employed criteria