Hi I’ve had a good read through all the threads but can’t find an exact answer to my situation. Sorry in advance but I think it will be easier if I explain what and where I’ve been working for the past 2 years before asking your advice on my last 3 paragraphs.
For the past 2 year I have been working away from home and living in lodgings and travelling home every 2nd weekend. I have worked for 2 different companies during this time.
The first company told me I needed a UTR number and that I had to invoice them for the hours I worked and deducted 20% of my earnings I was paid the remainder. I paid my NIC’s twice a year when HMRC ? sent me my bill and completed an online tax return last year.
The 2nd place also used my UTR number but I was employed through an agency. The agency advised me that I needed to register with (what I assume is an umbrella company) to cut a long story short, I registered with T and L contracting but this time I was sent a self bill with no deductions on it apart from their fee. I understand that I’ll need to complete and online tax return with my expenses and plan to do that soon.
I am now back at home in Scotland and again working with an agency. I think I’m now classed as an “a contractor” Before the work commenced I had to provide my National Insurance number to them and I was advised that I could either go PAYE or continue being paid with the same company I used whilst working in London. I opted to stay with T and L contracting but I’m still getting self bills with no deductions at all being made. So ………. How do I go about paying my NIC’s now ? and do I need to pay T and L contractors NIC’s as well ? and if that is the case will HMRC bill me for the employers % and my own % (sorry I don’t even know what the %’s are ?) I know when I was in London the NIC’s were very small so getting billed twice a year was fine, but if my way of thinking is correct if I continue this way then I’ll end up with a massive bill?
I’m on a better hourly rate than I would have been had I gone PAYE, but from reading some of the posts on here I think I might be better off being on the lower rate and letting the agency employ me rather than T and L ? My contract with them says “ I fall outside of35” and I also had to opt out of “conduct regulations 2003” My contract also says T and L will require a copy of my “certificate of Incorporation” and also asked that I supply a copy of my “VAT registration certificate” I don’t even know what these are or where I would get them.
I know this is a bit long winded but I have a gut feeling that I’ve done everything wrong. I have been working for 6 weeks now and really need to get this addressed ASAP, sadly I get bamboozled easily over the phone so would really appreciate the advice from you guys. I find it much easier to read and digest things, rather than phone calls.
Some of my work mates have told me to register with an umbrella company from Jersey and told me they get paid the minimum wage from them and the rest as a loan and that the company will take care of my NIC’s. This sounds to good to be true, so no doubt it can come back and bite you ?
For the past 2 year I have been working away from home and living in lodgings and travelling home every 2nd weekend. I have worked for 2 different companies during this time.
The first company told me I needed a UTR number and that I had to invoice them for the hours I worked and deducted 20% of my earnings I was paid the remainder. I paid my NIC’s twice a year when HMRC ? sent me my bill and completed an online tax return last year.
The 2nd place also used my UTR number but I was employed through an agency. The agency advised me that I needed to register with (what I assume is an umbrella company) to cut a long story short, I registered with T and L contracting but this time I was sent a self bill with no deductions on it apart from their fee. I understand that I’ll need to complete and online tax return with my expenses and plan to do that soon.
I am now back at home in Scotland and again working with an agency. I think I’m now classed as an “a contractor” Before the work commenced I had to provide my National Insurance number to them and I was advised that I could either go PAYE or continue being paid with the same company I used whilst working in London. I opted to stay with T and L contracting but I’m still getting self bills with no deductions at all being made. So ………. How do I go about paying my NIC’s now ? and do I need to pay T and L contractors NIC’s as well ? and if that is the case will HMRC bill me for the employers % and my own % (sorry I don’t even know what the %’s are ?) I know when I was in London the NIC’s were very small so getting billed twice a year was fine, but if my way of thinking is correct if I continue this way then I’ll end up with a massive bill?
I’m on a better hourly rate than I would have been had I gone PAYE, but from reading some of the posts on here I think I might be better off being on the lower rate and letting the agency employ me rather than T and L ? My contract with them says “ I fall outside of35” and I also had to opt out of “conduct regulations 2003” My contract also says T and L will require a copy of my “certificate of Incorporation” and also asked that I supply a copy of my “VAT registration certificate” I don’t even know what these are or where I would get them.
I know this is a bit long winded but I have a gut feeling that I’ve done everything wrong. I have been working for 6 weeks now and really need to get this addressed ASAP, sadly I get bamboozled easily over the phone so would really appreciate the advice from you guys. I find it much easier to read and digest things, rather than phone calls.
Some of my work mates have told me to register with an umbrella company from Jersey and told me they get paid the minimum wage from them and the rest as a loan and that the company will take care of my NIC’s. This sounds to good to be true, so no doubt it can come back and bite you ?
Comment