UTR number

[dazzlerdo]

Just after some advice please, I'm clueless when it comes to this and so is my son!!

So 17 year old is at college 3 days a week, he's found himself a job 2 days a week earning £60 a day. The person he's doing the work with asked him to get a UTR number. Does this mean he will be self employed and also will he have to pay tax on £120 a week? Does anyone know how he will pay the tax if he has to and also any advice on how to get the UTR?

Thanks

He would be below the threshold to pay tax as the resonant allowance is currently £12,570 per year. To get a UTR he needs to register as self employed on the HMRC website and they will send one. Hope that helps!

Thank you @rosie561 I've just been looking at the hmrc website. I'm thinking he needs to create a government gateway account first then go from there. Hopefully straight forward.

Does he meet the criteria for self employed?

What kind of work is it? Does it fall under the Construction Industry?

It sounds like he is working in construction and when he is paid he will get 20% deducted which the person paying him will pay to HMRC. They should issue him a monthly statement showing the deductions and he will then have to do an annual self assessment. As tax has already been deducted and if he's only on £120 a week he will prob end up with a refund when he does an annual return. If he's working for one company they really should employ him properly on PAYE rather than self employed. Sounds like they're trying to avoid holiday and SSP.

@TheHoptimist I'm really not sure. Like I say I am clueless to all this so have no idea what the criteria would be.

@Forgetaboutme yes it's construction work. He's going in his 2nd year at college doing brickwork. The person he is working for is a bricklayer so he's labouring for him. Told him he may be able to get him an apprenticeship but not get his UTR number.

@LittleMissA I thought exactly the same, surely if it's only 2 days at the moment and only £120 he could set him on PAYE.
I really don't want him going down the self employed route due to it being his first experience is actual work!

To get his UTR number sorry typo. Didn't mean not to get!

Whose payroll would he go on?

The bricklayer is very unlikely to be an employer, I'd guess he's a self employed tradesman himself he won't be employing your son

Don't the college have someone who can help you, they must have this all the time

@marqueses I have no idea.
The bricklayer is a friend of one of my family members that's how he got working with him.
He is self employed himself I think, he was wanting a labourer to help him out on jobs.
Really need to get my son to speak him more about it all. He's not a confident person so I know he won't ask all the questions.

Never thought about speaking to college about it. That's a good idea

I think if your son is looking to get into this area of work he should get used to the CIS side of it.

I would guess the bricklayer he is working with is subcontracted himself and goes from job to job as a subcontractor.

Your son needs to make sure he keeps all his deduction statements to do his SA at the end of the tax year and should be due a repayment. If he doesn't get a UTR and register under CIS the deductions will be made at 30%. If he gets his UTR and registered via CIS it will be 20%.

@Forgetaboutme yes that is a good point. Good idea for him to get used to it all now.

He has been trying to do it all online via the hmrc website. The account he needs to create is asking him for 2 types of id and he only has 1. It's given him a number to ring, he's tried it 3 times today and each time been on hold for an hour with no answer!
Thanks for your advice, he will just have to keep trying the number