seanyseanyseany

Now i am qualified as a CP Operative, i am going to be looking for work in this and other associated areas, will it be best to set up as a Sole Trader and also continue to work in my full time job, or is it better to after checking out if it`s viable, go full time as a Sole Trader?.Would be grateful for any response to this and any advice that may be offered also.

I know that you pay your National Insurance at the lower rate of £2.30 per week and your Tax liabilites are then calculated at the combined rate, if working in another job up to £36,000 at the 22% rate and 40% if over, am just undecided if it is practical to have my job and do the security work or to take the plunge and do the security alone?.

silverback

Thats a very good question as i am in exactly the same boat as you

Carl Dowd

Guys just a little bit more complicated than that... but you are almost on the right lines...if you both want to email me at carldowd@yahoo.com I can offer you sound advice on operating as a 'Sole Trader' if you wish.

Best done privately because I feel that when it comes to Business or Finances, then it is a PRIVATE matter and this is an open public Forum.

You will see from my website that I have operated in business as a Sole Trader successfully, for 21 years.

ATB

Carl

seanyseanyseany

Thanks for that, have sent you e-mail through this site, cheers.

silverback

E-mail sent to address provided thanks

Carl Dowd

For those of you out there that are thinking of Self-Emploment, becoming a Sole Trader, A Partner in a Partnership or a Partner in a Limited Partnership...I thought below might be of some use.

The Revenue and Customs have tightened their 'Definition' of Self-Employment under Tax Rulings. However, in my experience of 21 years the Inland Revenue now Revenue and Customs have always been fair.

Small Business Encyclopedia: Self-Employment

Self-employment refers to the status of an individual who—rather than accepting a position as an employee of another person or organization—chooses to go into business for him or herself. Self-employment offers individuals a number of advantages, from the freedom to work without supervision to the ability to deduct the costs of doing business for tax purposes. But it also has some potential drawbacks, including uncertain levels of income, long working hours, isolation, and the need to fund one's own health insurance and retirement plans. People choose self-employment for a wide variety of reasons. Some desire a change in lifestyle, some are unable to find other employment, some want to work at home in order to care for small children, and some are retirees seeking additional income. Regardless of the under-lying motivation, however, there are ways for self-employed persons to overcome the potential drawbacks and increase their chances for success.
Individuals who choose self-employment must be aware of the rules governing the treatment of free-lance employees (also known as independent contractors). Classification of someone as an employee or a self-employee is somewhat ambiguous and depends on several factors, including the degree of independence, the freedom to hire others to do the work taken on, the freedom to work for others, and the assumption of risks. Independent contractors typically accept no fringe benefits and pay Social Security, Medicare, and income tax installments directly. Employees have more statutory rights, benefits, and protections than subcontractors, who must generally provide these for themselves. But independent contractors have advantages in terms of freedom, flexibility, and tax deductions.
The IRS applies a 20-part test in order to determine whether a certain worker should be classified as an employee or an independent contractor. The main issue underpinning the test is who sets the work rules: employees must follow rules set by their bosses, while independent contractors set their own rules. For example, an individual who sets his own hours, receives payment by the job, and divides his time between work for several different employers would probably be classified as an independent contractor. Other criteria involve who provides the tools and materials needed to complete the work. For example, an individual who works at an employer's facility and uses the employer's equipment would be considered an employee, while one who works at a separate location and provides her own equipment would be classified as an independent contractor. Finally, an independent contractor usually pays his own expenses of doing business and takes the risk of not receiving payment when work is not completed in accordance with a contract, while an employee is usually reimbursed for business-related expenses by the employer and receives a paycheck whether his work is completed or not.
An individual's status as a self-employed, independent contractor can be reinforced by having multiple clients, being paid by the amount of work done rather than by the hour, or obtaining an employer identification number from the IRS. Working under a business name also helps reinforce this status. Printing invoices, business cards, and stationery can also help identify someone as a self-employed person. In general, the person must demonstrate that he or she is in business for the purpose of making a profit.