Self Employment start up checklist?

[taxhelper]

bitemarx - one thing that worries me about this is your statement that the person/organisation hiring you has demanded that you work as self employed.

You are either self employed or employed. Fact. it's not a "choice". If the manner in which you work indicates that you are employed then that is what you are.

 

If you work in a situation as self employed whereas, in reality, you are actually employed then you could be on dodgy ground. You ought to seek proper professional advice from a chartered tax advisor (CTA). Not someone who tells you to "come back later". What tax advisor would say that? Are they qualified? Sounds very unprofessional and unhelpful to me.

You need proper guidance.

Edited July 30, 2020 by taxhelper

[taxhelper]

I see. You appear to be under the associate agreement but everyone here knows that HMRC are reviewing ALL situations where someone claims to be "self employed". Dental practices are part of this review and HMRC have been actively looking into dental agreements for at least the last two years.

You must be very, very cautious about the agreement between you and the practice principal. When cases have come to court (often under employment law not specifically tax law) differing decisions have been made. Not all dental agreements are the same.

The manner in which you and the principal work together may be the "nature of the industry", as you put it, but things can easily change. The definition of "employed" is under huge scrutiny by HMRC at the moment. 

You probably don't bill patients directly for  the dental services you provide to them, most likely you don't use your own equipment/tools/materials to carry out your work (a basic staple of all self employed workers) and you say you don't issue invoices for your work (again, a basic staple of self employed workers).

 

You also say you are allowed to hire someone else to carry out your work. This is called the "right of substitution" but, unless this actually happens, and you pay someone yourself to carry out your work, then HMRC will disregard this self employment indicator.

If you are working under a standard agreement you are also probably obliged to turn up for work to the surgery during times stipulated by the practice principal and are paid on a rolling monthly basis (less contributory costs to running the practice).

You can see how this is a minefield especially in light of any future HMRC decision.

All that said, if that's how you are required to work, and HMRC are not challenging it right now, then I guess you will carry on but I would still urge you to get specialist TAX advice for this. How to keep records of your business income and expenditure will be straightforward but the tax issues may be fraught with danger.

Good luck with everything.

[taxhelper]

Thought you might. Well, you are now aware of what HMRC has in their minds so you are at least forewarned.

Good luck with it all. Just make sure you keep some sort of spreadsheet etc for your income and expenses. It's your call how simple or complex your records are.

Remember the object of this - you are signing a Tax Return that you can substantiate is as accurate as it can be to "the best of your knowledge and belief".

[taxhelper]

Ticking time bomb is spot on.

HMRC have already challenged various sectors of the economy, and their "self employed" assertions, including the TV/film industry, agency workers, plumbers and other areas of the construction industry.

Their examinations are not likely to stop any time soon so keep it in mind.  

Stay safe.

[taxhelper]

Research is important. I agree there are many sites offering information and, sorry to make matters worse (possibly), but, if you do form a limited company you also need to keep an eye on "disguised employment", "IR35" implications.

Again there are many sites offering advice and explanations about IR35 but, in essence, this is the basics of it .....

IR35 for Dummies. It’s hard to go on Linkedin these days… | by Genesis | Medium