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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5019
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have been offered a job with a building company working as

Resolved Question:

I have been offered a job with a building company working as a self employed consultant managing their office and accounts. I have never been self employed before and need advice about what I need to do. I need to clear £600 a week (after all deductions) and will be paid weekly.
Please advise on:
- The first steps in setting myself up
- How much I need to invoice them for
- How and where I need to register as self employed
- What I can claim tax back for and how I go about doing this
- Am I better off doing my own self assessment rather than paying an accountant
- If I am better off doing my own self assessment what type of records/paperwork do I need to keep
Also please give me any other advise you think might be helpful/useful to me.
Kind regards
Clare Vincent
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.
Before I can give you some constructive advice, I wish to know a bit more about your new job.
What you be working for one company all the time?
Would you hours of work be fixed or would you choose your working?
Basis of calculating your salary/fee?
Do you have other clients/customers?
Will you be responsible for your insurance/ professional indemity?
Many thanks
Customer: replied 2 years ago.
answers
1- yes
2- My hours would be fixed
3- I have explained to them that I need to clear £600 per week and they have asked me to work out how much I would need to invoice them for in order top clear that amount
4- no
5- I am not sure about insurance etc. Can you advise?Many thanks
Customer: replied 2 years ago.
I gave the incorrect email- could you possibly send your reply to***@******.***
Thank you
Customer: replied 2 years ago.
They cannot give me a fixed permanent contract due to the nature of the business and so I would be offering my services as a consultant on a week to week basis so I can go out and work with other companies should I need to.
Expert:  taxadvisor.uk replied 2 years ago.
Clare, thank you for your prompt reply.
I am drafting my comprehensive response and will revert to you shortly.
Many thanks
Expert:  taxadvisor.uk replied 2 years ago.
Clare, thank you for your patience.Attached is a document providing you comprehensive information. I hope this ishelpful and answers your question.If you have any other questions,please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 2 years ago.
Thank you for your prompt reply also. Given the scenario you had provided based on an invoice for £800- how much would I clear if I was to invoice them for £750 per week?Many thanks
Expert:  taxadvisor.uk replied 2 years ago.
Clare, thank you for your reply
A weekly gross invoice of £750 would attract
Income tax on approx. £550 at 20% = 110
Class 4 NI on approx. £595 at 9% = 53
Class 2 NI £2.80 pw = 3
Total Tax and NI (110+53+3) = 166
Net pay (750-166) = £584
I hope this is helpful.
Customer: replied 2 years ago.
Hi,Thank you for getting back to me so quickly on all counts. I think you have answered all of my questions. I am going to have a look online tonight at the links you provided me with. If I should have any other queries regarding this specific matter tomorrow would I be able to contact you again or would I need to pay a fee again?Many thanks
Expert:  taxadvisor.uk replied 2 years ago.
Clare, thank you for your reply. If you have a follow up question to this question please use this thread and you will not pay a fee again. If you are happy and there are no more issues I willappreciate if you would kindly rate/accept the service I provided to ensure Iget credited for it by Just Answer.
Customer: replied 2 years ago.
Hi,I have a question about the info below:Self-employed National Insurance ratesYou usually pay 2 types of National Insurance if you’re self-employed:
##Class 2 if your profits are £5,965 or more a year
##Class 4 if your profits are £8,060 or more a yearYou work out your profits by deducting your expenses from your self-employed income.Rate for tax year 2015 to 2016Class 2 £2.80 a week
Class 4 9% on profits between £8,060 and £42,385
2% on profits over £42,385What do they mean by profit? As my invoices would be labour only I find this confusing?
Customer: replied 2 years ago.
Never mind I just saw the line about how to work out your profit:-)
Expert:  taxadvisor.uk replied 2 years ago.
Your profit is invoice value less expenses. As I explained in my earlier posting your expenses are likely to be low and I have given you a Class 4 figure assuming income and profit are the same.I hope this is helpful.
Customer: replied 2 years ago.
Where would I find the 'ceiling' figures for the expenses I can claim?
Expert:  taxadvisor.uk replied 2 years ago.
There is no ceiling figure for expenses as such.. for an expense to be allowable it has to be incurred wholly and exclusively for the purpose of the business.More information on this can be found herehttp://www.hmrc.gov.uk/manuals/bimmanual/bim37007.htmI hope this is helpful.
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thank you for your help. I will keep this thread open overnight so that I can contact you tomorrow with any further questions after reading all of the links you have sent to me.
Many thanks.
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.