Do i need to be self-employed?

[SillyBilly123456]

I've been offered a job as a companion to someone for a few hours a week, so their carer can get out and do something for themselves. As I would be earning about £100 a week I am going to have to declare these earnings to HMRC and do a self-assessment, I think? Do i need to register as self-employed and do I need to get public liability insurance to cover me whilst being with this person?
I could do with the money, but I don't know how much of a hassle it's going to be to have to do a self-assessment etc. Any advice or help gratefully received.

Yes, you will need to register as self employed

Its easy to register as self employed and the self assessment forms are very simple .Just remember to keep money to one side for the tax as I assume this is not your only work. I cant comment on PI insurance

It sounds like an employed job not self employed.

probably an idea to get the PI insurance, but it will be tax deductible.

It's really simple to register as self-employed. I think you can earn 1000 in a year before you have to register. Make sure you keep track of any expenses you incur; fuel, bits and bobs you have buy. I hope someone else will be along who knows better (I've been self-employed for years but it may be different if you are also employed at the same time) but don't let it put you off.

the tax return isn't difficult but it can be helpful to have someone show you how to do the first one, so you know (then you can generally copy it in future except the figures of course)

Also I think there are a few rules around people who do very regular work "self employed" coming under IR35, so might need to be employed instead.

https://www.gov.uk/guidance/check-employment-status-for-tax

Thank you, that's very helpful. Using the CEST tool suggests that I need to be employed, but what does that mean for the person employing me? They asked me for an invoice for the hours I did for them this week. Do I need to ask for a contract? How should they pay me? I'm starting to worry I'm going to do something wrong here and get into trouble.
I do have another job, it's only 6 hours, but is with an organisation, so I'm paid through a payroll scheme.

They would need to set up as an employer, I assume and put you on the payroll. They might want to avoid it! if your hours are less regular (e.g. changing a bit each time and week and hours) there might not be a need for that.

I would ask your CAB for advice as it seems a bit complex. Or even ChatGPT!

This might be helpful.
https://www.gov.uk/au-pairs-employment-law

It might be worth looking at small payroll companies who help people employ a nanny etc, you might find there are business' who would take care of everything for a small fee.

You wouldn't get into trouble as long as you declare it on a self assessment form.

They might be asked to employ you but that would only happen if you were investigated ( which is either done randomly or if something doesn't look right on your return)

Thanks for everyone's input. I guess I now have to have an awkward convo about them employing me.

Honestly, I wouldn’t worry. There’s no way anyone is going to come for you over a couple of hours work a week as a companion. As a PP said, you’d need to be investigated first (which is very unlikely) and even then might not require it.

They won't be your sole means of income and therefore not your sole employer. That means they do not have to make you an employee, you can register as self-employed.

All you do when you fill in your tax return is do two sections - one for your earnings as an employee, and one for your earnings as self-employed. The system will automatically calculate how much tax you need to pay.

If you are paying NI contributions via your employed job, then you don't need to have to pay self-employed NI either.

My only concern would be liability insurance and/or DBS, and that is not my field of expertise.

As OP is earning <£6K a year, does she need to report this although she won't be taxed on that income as it's substantially below the tax allowance threshold? (Only ever done PAYE so I don't know.) Or is the assumption that she has other earnings that already take her over the threshold?

Yes. Any self employed income over £1,000 needs to register for self assessment