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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I’ve got a job offer but I need to work out what is most

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Hi, i’ve got a job offer but I need to work out what is most beneficial for me tax wise
Assistant: Have you talked to a tax professional about this?
Customer: Yes
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

 

Hi

 

Can you expand- thanks Sam

 

Customer: replied 13 days ago.
Hi, yes
Customer: replied 13 days ago.
So, I’ve got a job offer of 45k + car benefit + commissions on sales working as an employee for a company . I’ve been asked if it would be beneficial for me tax wise to just be employed part time with them and open a vat account as a sole trader and invoice them for the remaining + commissions . What’s the best option for me tax wise?

Hi

 

Thanks for your response and providing additional information. Per HMRC employment legislation I am afraid you cannot simply choose to be self employed its a matter of law and how you provide your services, so if the work has been offered as an employee - then this is the only way it can be as the way you provide your services will not be any different so you have to go down the 45K+ car benefit + commissions route I am afraid (which actually is more beneficial as you don't want to mess around with the costs and stress of self assessment self employment and VAT returns and an investigation by HMRC foe wrongly application of legislation regarding your engagement ) Thanks Sam

 

Customer: replied 13 days ago.
Thank you very much
Customer: replied 13 days ago.
Regarding the car benefit, is it better to take the benefit or having an higher gross salary?

I would say this is a tricky one to answer as a company car sees you having a newish reliable car on which you are charged your top rate of tax against the benefit figure - and to have that money as salary you have to pay for and run a vehicle of the same quality - so depaite the costs company car is always a better route BUT always made good the cost of any additional features (sun roof, cd player etc etc) and also make good all personal mileage - to keep the charges down then it becomes cost effective - but if you have a great car then clearly the salary would be betetr and you just claim 45p a mile for the first 10000 business miles and 25p a mile therafter but would your employer agree to this ? If so but they paid less than the amounts quoted - then you claim the difference from HMRC through an expenses claim for P87 OR against your expenses on the self assessment tax return employment page - Thanks Sam

 

 

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Customer: replied 13 days ago.
Thank you, very clear