Self-employed

[Danila]

Just remember not to spend it all so you can pay your tax and NI...

that is a good point! i'll be tempted i know

[TykeMerc]

thanks for the answer. i guess my main stupid question now why cannot i be self-employed sole trader for this contract? i read tax authority website and don't really see any reason why i cannot just register myself as a self-employed and fill in my taxes in April? if there is an absolute No and i am missing something, i'll go Ltd or umbrella route i don't mind, just wanted to do it simplier at the moment.

I'd say that since you haven't got a UK agency involved there's nothing to stop you trading with your client as a Sole Trader.

So long as you put cash aside for tax and NI it's perfectly workable.

[d000hg]

Question... does IR35 apply to true self-employment? You're not trying to 'evade tax' by taking 'income' as dividends after all. We don't see much on this topic since in the UK most agencies won't work with sole traders, but it would be interesting to know the specific legal/tax issues for those who do work this way.

[TykeMerc]

Question... does IR35 apply to true self-employment? You're not trying to 'evade tax' by taking 'income' as dividends after all. We don't see much on this topic since in the UK most agencies won't work with sole traders, but it would be interesting to know the specific legal/tax issues for those who do work this way.

I'd say that IR35 would be irrelevant in a Sole Trader situation. Unless things have changed drastically in the last 7 or so years since I packed in sole trading it's a simple income - expenses = profit = personal income, pax income tax and NI on all the income less allowances, no employers NI.

[Danila]

I'd say that IR35 would be irrelevant in a Sole Trader situation.

as far as I understand it is irrelevant, but they recommend to check carefully if you are truly self-employed or just employed, according to the contract and the nature of work you do. I have no idea what is the implication of it and how anyone is going to check if I'll just submit my tax return in April.