free small business advice & information
Main Menu
Hot Links
Page 3 of 16
Tax and NI
2. Are You Self-employed?
People who are self-employed can benefit from significant short-term tax and NI advantages compared with employees (see 3 and 10).
2.1 You are self-employed if you are your own boss and trade as a sole trader or member of a partnership. To convince HM Revenue & Customs (HMRC), you must at least show that you:
- control what you do, and how and when you do it
- have more than one customer
- bear an element of business risk
- have a right of substitution
2.2 If you trade as a limited company, you will be an employee of the company.
- This also applies to shareholding directors.
2.3 If the company contracts your services to a single client, who would otherwise employ you, it will probably be classed as a personal service company.
Labels: Tax
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory