NOT selfemployed and contract

Sep 05, 2006 3 Replies

Hi there,



My position is:


- I'm not selfemployed ( I'm eventually going to apply for it)



- I don't have a company.



I have a customer wanting me to design a website. What sort of legal document we can sign between me and the company intrested in my services?



Thanks a lot for any help Richard



You don't apply to be SE. You just wake up one morning, decide to become SE and tell the authorities that you have done so (within three months).

You sign a contract to do the work on an SE basis.

ISTM that you don't understand the concept of Self Employed work

tim

You don't *apply* to be self-employed. You *are* self-employed if you engage in a business activity in your own name. If you do engage in a business activity on an ongoing basis, you are required by law to register as self-employed (perhaps this is what you meant by "apply") within a few months of starting.

An agreement. A contract for services. You may not need one, but it is probably safer if you do have one, so that everyone knows where they stand and what's expected.

Contract or not, you *would* be self-employed if you did this work for remuneration (unless the customer treats you as a temporary employee, in which case your contract would be "of service" as opposed to "for services").

But "self-employed" is in the main a technical term to do with how you are treated for tax purposes. Doing only the occasional job would not necessarily amount to you being considered as engaging in a trade or profession which would make you self-employed to the extent of having to register as such and to pay Class 2 NICs. You could instead simply lump all the money you get paid for this together as miscellaneous earnings to be reported as "other taxable income" at Q13 on the tax return.

Basically the same as anyone else would sign.

Then, within three months, you have to notify HMRC that you have now started a business, and account for the tax on the income you earned from it at the end of the year.

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