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Camembear

Help - Tax Advice Needed

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Hello, you seem to have some smart cookies here - could I pick your collective brains ? I have been offered a job where I will be the only UK rep of an overseas company. I would be working from home. Initially I thought I would be self-employed but having spoken to someone at the HMRC, it seems (owing to the nature of my work and salary provision, etc) I would actually be considered as 'employed' rather than 'self employed'. I think I need to register with Tax Office as a 'new employer' and set up some kind of PAYE scheme so the tax/NI is deducted from my salary. Has anyone done this ? Having experienced the trauma of the Helpline, where menus lead on to more menus ('Press 1 to hold for 10 mins, press 2 to hold for 10 mins and then be cut off.....'), and it is next to impossible to actually speak to someone, I would be eternally grateful for anyone who could explain to me what I should do.... thanks so much !

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Hello, you seem to have some smart cookies here - could I pick your collective brains ? I have been offered a job where I will be the only UK rep of an overseas company. I would be working from home. Initially I thought I would be self-employed but having spoken to someone at the HMRC, it seems (owing to the nature of my work and salary provision, etc) I would actually be considered as 'employed' rather than 'self employed'. I think I need to register with Tax Office as a 'new employer' and set up some kind of PAYE scheme so the tax/NI is deducted from my salary. Has anyone done this ? Having experienced the trauma of the Helpline, where menus lead on to more menus ('Press 1 to hold for 10 mins, press 2 to hold for 10 mins and then be cut off.....'), and it is next to impossible to actually speak to someone, I would be eternally grateful for anyone who could explain to me what I should do.... thanks so much !

Dont think there is quite enough info here, but they either employ you and they pay tax/NI direct or they are taking you on as a contractor. If they are taking you as a contractor what HMRC were probably getting at is that you would actually be an emplyee of their company on a contract and therefore subject to IR35, where you also have to pay the employers NI as well as the employees. There is a website that helps you work this out called somthing like contactorscalulator or something.

If you are a contractor that works for different companies then you can set yourself up as a business and are not subject to IR35 etc blah.....

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Hello, you seem to have some smart cookies here - could I pick your collective brains ? I have been offered a job where I will be the only UK rep of an overseas company. I would be working from home. Initially I thought I would be self-employed but having spoken to someone at the HMRC, it seems (owing to the nature of my work and salary provision, etc) I would actually be considered as 'employed' rather than 'self employed'. I think I need to register with Tax Office as a 'new employer' and set up some kind of PAYE scheme so the tax/NI is deducted from my salary. Has anyone done this ? Having experienced the trauma of the Helpline, where menus lead on to more menus ('Press 1 to hold for 10 mins, press 2 to hold for 10 mins and then be cut off.....'), and it is next to impossible to actually speak to someone, I would be eternally grateful for anyone who could explain to me what I should do.... thanks so much !

If the many thousands of contractors in the UK all phoned HMRC to ask the question you did they would all get the same response as you did. HMRC do not want contractors to be paid as contractors. They want them to be PAYE.

I suggest you go contract and get one of the large accountancy firms to help you out. They will soon advise you if you are ir35 compliant or not but at the end of the day it's your call if you are paid a gross amount and it is your responsibility to pay the tax. Sounds to me like you'll be fine as a contractor under the circumstances you described and its easy to get it all set up.

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Hello, you seem to have some smart cookies here - could I pick your collective brains ? I have been offered a job where I will be the only UK rep of an overseas company. I would be working from home. Initially I thought I would be self-employed but having spoken to someone at the HMRC, it seems (owing to the nature of my work and salary provision, etc) I would actually be considered as 'employed' rather than 'self employed'. I think I need to register with Tax Office as a 'new employer' and set up some kind of PAYE scheme so the tax/NI is deducted from my salary. Has anyone done this ? Having experienced the trauma of the Helpline, where menus lead on to more menus ('Press 1 to hold for 10 mins, press 2 to hold for 10 mins and then be cut off.....'), and it is next to impossible to actually speak to someone, I would be eternally grateful for anyone who could explain to me what I should do.... thanks so much !

You need professional advice since such set ups can be tricky.

As an 'employer' operating PAYE you would have to account for not only the Income Tax and NIC due on your earnings but the Employers Class I NIC due on it as well.

You are also opening yourself up to the potential nightmare world of RTI returns which will require you to do a lot more work than to calculate the tax and NIC due at the end of a year on the back of a fag packet. If you get it wrong you also leave yourself vulnerable to HMRC slapping penalties on you.

For information about operating PAYE HMRCs web site is likely to be a lot more use than talking to the half trained idiots who man most of their call centres

http://www.hmrc.gov.uk/payerti/index.htm

You could also try joining the AccountingWeb site and posting your query on there as you might get some help from the professionals who post on there on PAYE matters

http://www.accountingweb.co.uk/

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You need professional advice since such set ups can be tricky.

As an 'employer' operating PAYE you would have to account for not only the Income Tax and NIC due on your earnings but the Employers Class I NIC due on it as well.

You are also opening yourself up to the potential nightmare world of RTI returns which will require you to do a lot more work than to calculate the tax and NIC due at the end of a year on the back of a fag packet. If you get it wrong you also leave yourself vulnerable to HMRC slapping penalties on you.

For information about operating PAYE HMRCs web site is likely to be a lot more use than talking to the half trained idiots who man most of their call centres

http://www.hmrc.gov.uk/payerti/index.htm

You could also try joining the AccountingWeb site and posting your query on there as you might get some help from the professionals who post on there on PAYE matters

http://www.accountingweb.co.uk/

Thanks so much to Southeast, Sine and Stormy for your replies, much appreciated.

I've looked at some of the websites suggested and it does seem to me that I would be classed as an 'employee' not as a 'contractor' - I would receive a monthy wage, I wouldn't be working for anyone else, it would be permanent and full-time, and I would not be invoicing for hours/work done. So I guess I would be looking at the PAYE route but thanks Stormy for flagging up the potential pitfalls, it seems I need to look at this very carefully....

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I would say self-employed is the most sensible option, and what you should be aiming for, but as has been mentioned HMRC's default answer is PAYE and they frown on such schemes unless you actually work for them, the BBC or the NHS at a high level.

A lot of companies I deal with have no UK office and just have someone here as their UK agent. Typically they will be styled Joe Bloggs Agency LTD. If you run it like a mini-business and do things like invoice customers and collect payments, even though the parent company may deal with all the shipping from their base in Europe, you're still acting far more like a business than someone on PAYE. If you represent more than one company then it would be even harder to suggest you weren't self-employed. I'd suspect, in reality, anyone with a track record of being self-employed is probably accepted as being so even if they take long-ish periods working for one company under contract again later on.

Increasingly people will be working more and more on an ad hoc basis, as and where the work is, and HMRC will be forced, probably reluctantly, to address this or go into meltdown constantly issuing tax codes as people chop and change work.

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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