• Self- Employed
If you are unsure if you are an employee or self-employed there is a YouTube video which can help you decided – this is useful for Employers too.
Am I Employed or Self-Employed
If you are Self-Employed
You maybe renting a chair/space, if this is you then the money you pay to rent that space would be considered an allowable business expense as would any stock you purchase.
You maybe being paid a percentage of monies taken by the business for the jobs you undertake. This would be classed as your Self-Employed income, it maybe that all other expenses are paid by the owner of the business and so you would not claim these as business expenses.
Actions for the Self-Employed
• Register for Self-Assessment
• Watch YouTube videos to find out about registering for Self-Assessment, your Self-Employed tax return and expenses if you are Self-Employed and how to complete your Self-Assessment tax return.
• Join HMRC Webinar s on record keeping, business expenses which may include tools needed to do your job i.e. scissors or mobile phone, calculating your taxable profit and car expenses.
• Budget for your tax bill using the HMRC Tax and National Insurance Calculator
• Check the methods of paying your tax bill , including the budget payment plan where you can pay via instalments.
Actions if you are an employee
Your employer will deduct any tax and national insurance due via the PAYE system and pay this to HRMC on your behalf.
You may be able to "claim tax relief on the cost of repairing or replacing tools you need to do your job e.g. scissors or cleaning of a uniform.
There are 7 things you need to do when you take on employees to help you in your business. Gov.uk has guidance about employing staff for the first time
Actions for employer
• If you’re paying yourself as a director of a limited company and/or paying other employees, you’ll need to register for a PAYE scheme with HMRC
• Watch the help and support videos for employers on YouTube
• Join HMRC Webinars including becoming an employer, payroll and using the Basic PAYE tools, statutory payments, expenses and benefits and your responsibilities as your business grows.
All employers will have toenrol your staff into a workplace pension by law over the next few years, by 2018. This is called 'automatic enrolment'
When your business must start doing this - called a 'staging date' - depends on how many people you have on your payroll. If you don't already offer your workers a workplace pension scheme, you must set one up before your staging date. Use the Pension Regulator's Duties Checker to find out what you need to do and when you need to do it
Employee rights are outlined in the employee contract your employers are entitled to certain employment rights including:-
• Statutory Sick Pay – SSP Employers Guide
• Statutory Maternity Pay- SMP Employers Guide
• Statutory Paternity Pay- SPP Employers Guide
• Shared Parental Pay and Leave – SHPP Employers Guide
HMRC Basic PAYE Tools includes calculators to help you work out how much to pay.
Join HMRC Webinars to find out more about statutory payments
Paying expenses and providing benefits to employees
If you are paying expenses and benefits to employees including directors you may need to tell HMRC and pay tax and national insurance on them.
You can find guidance on these expenses on the a-z expenses guide for employers.
Join the HMRC Webinars to find out more about expenses including employee travel, trivial benefits, entertaining staff, company cars and fuel and how to payroll these benefits.
This message was edited 2 times. Last update was at 17/11/2017 09:43:20