Russell
Member
Right then I've got a bit of a legal/ tax question that I've been trying to find the answer to, so I'm wondering if you lot can shed some light. I' m working as a freelancer so registered as a sole trader but get quite a lot of my work from regular clients.
At the moment I have an ongoing appointment working in house with a client 2 days a week. It's not an official contract just they offer me regular work I give them first refusal on my availability. I read somewhere a while back that if (as a sole trader) you work over a certain amount for one client during the tax year, good old Mr tax man could argue that this classes as part time employment. Therefore you will have to go through the PAYE system and the company you do work for are liable for some of your tax and national insurance payments. This is obviously something I don't want to land on my client.
Does anyone know what the official line on this is? I believe it has come about as a consequence of some amendments in the law meant to protect casual/ temp workers.
I know a way round it is to set up as a Ltd company rather than be reg'ed as a sole trader, but having just got my head round my own taxes etc I don't particularly want to set up as Ltd at the moment.
Any advice or links on this matter would be grand
Cheers
At the moment I have an ongoing appointment working in house with a client 2 days a week. It's not an official contract just they offer me regular work I give them first refusal on my availability. I read somewhere a while back that if (as a sole trader) you work over a certain amount for one client during the tax year, good old Mr tax man could argue that this classes as part time employment. Therefore you will have to go through the PAYE system and the company you do work for are liable for some of your tax and national insurance payments. This is obviously something I don't want to land on my client.
Does anyone know what the official line on this is? I believe it has come about as a consequence of some amendments in the law meant to protect casual/ temp workers.
I know a way round it is to set up as a Ltd company rather than be reg'ed as a sole trader, but having just got my head round my own taxes etc I don't particularly want to set up as Ltd at the moment.
Any advice or links on this matter would be grand
Cheers