Should i become self employed?

[alex_kyuss]

Hi all hope every ones well.

(I'm not to sure if this is the right place to put this question but here goes)

I have been working part time for a small local rental companies as a sound engineer for about 2 years now mostly busy in the summer (Engineered about 160 shows in the past year) and now I have started working for a bigger company crewing (and hopefully engineering for them soon), I am also doing a hgv test to try and get as much work as possible. what I want to no is do people think that I should just work for them and when the work drys up at the end of the summer which is when I think I'll do some temp driving work. work through the temp agency or make my self, self employed?

Cheers all ;)

[Rob_Beech]

Hi Alex,

 

Unfortunately its something you'll have to look at, weigh up and answer yourself.

 

There are various different ways of going about it. I'm self employed and run a small PA company where I use crew and engineers on freelance terms as and when I need them, rather than employing anyone as the work is quite scattered and random (6 nights one week 1 night the next etc), I obviously get to chose what work I do and don't do, and get to chose EVERYTHING else about the business, and how much I can pay myself etc. I do however have to do ALL the other work involved, I have to find the jobs, prep the gear, load vans, often on my own although there are a number of people (some on here) that have often helped me load my van full of gear even when they are not working on the job with me to which I cannot thank them enough. When work drys up with a company who employ you, it is often because work drys up everywhere, so being self employed you may not see a benefit to work at that time of year. As for the temp driving work, its a useful skill and part to the license, useful in this industry as much as any other, and work is usually all year round with that. Its more, what I do, and letting you decide whether you can relate to it and whether it would be a route you'd like to take or not.

 

the final decision is yours.

 

I also await other peoples views on the matter.

[w/robe]

I have been working part time for a small local rental companies as a sound engineer for about 2 years now mostly busy in the summer

Are you really workig for them part time? You sound as if you are working for them as a casual employee.

 

I have started working for a bigger company crewing (and hopefully engineering for them soon)

Most larger companies will tell you how they expect you to be taxed.

 

If you are working as a casual I would certainly advise you to become self-employed. If you are really employed part time you can still be self employed for your other work. I am both PAYE and self employed as are many other people.

 

I would advise you get an accountant, though some people say that doing your own tax is easy, I personally am very happy to let my accountant deal with it. I will recommend him to you if you PM me.

[mac.calder]

It's a difficult one - on the one hand, you are your own boss - free to seek out work. On the other, you are your own boss - and you have to seek out work.

 

Major problems with being your own boss - you have no protection from clients (enter public liability insurance - but you still have to put up with b!tching clients), you also have to organise everything - including the "hired help" when required.

 

I don't know the UK legalities - but I would assume that most employment contracts (or it may even be 'the law') have clauses that stop employees from approaching current/past clients independant of the employer for a number of years - so looking for work means you need to forge ties with new clients - a pain in the rear as a general rule.

 

There are also some advantages though. Some hire companies subcontract their crews - instead of casual employment (That is what I have observed in AU - something to do with taxations... I don't know) - so being self employed would make you eligable to be listed on a number of freelance books... Just remember though - you will be one name on a rather long list - and rental companies tend to have "Prefered Freelancers" - those that consistantly receive excellent feedback AND make themselves available - and those prefered freelancers will be the first people called.

 

What ever you do - don't burn any bridges.

[w/robe]

Alex

 

I think I may be misunderstanding what you are asking, are you saying;

 

I am intending to keep doing all the work I currently do but should I pay my tax differently (which is what I thought you were asking)

 

or

 

Should I chuck my permanent job and tout for work (which mac.alder answered)

[zonino]

there is nothing to stop you having more than 1 PAYE employer (although it can sometimes result in you paying a bit too much and getting it rebated, that was a nice surprise when I got back!)

 

mods: should this be in general tech chat? Mod - Yes and now it is ;)

[mac.calder]

there is nothing to stop you having more than 1 PAYE employer (although it can sometimes result in you paying a bit too much and getting it rebated, that was a nice surprise when I got back!)

 

Damn - Over here, even though I often fall under the tax-free threshold, my second and subsequent employers that I am registered with tax me hugely when I work for them, and I don't get it back - it is a ridiculous rate too... 48c/$. That is why sub-contracting can be quite attractive down here - as then it is just a matter of dealing with GST.

[zonino]

interesting..... there should be a way around that but I'm studying UK tax, not AU! do you have an accountant? that sounds like you should be able to claim alot of it back

[Kelite]

<it is a ridiculous rate too... 48c/$. That is why sub-contracting can be quite attractive down here>

 

Wow! That is a bit over my comfort zone, I must admit.

 

As a previous business owner (as a fitter and turner), the knowledge that you are your own boss is true enough. HOWEVER.... every single client/customer becomes your boss when you have your own business. The 'no burning bridges' policy cannot be stressed enough or too often.

 

 

 

Rob Beech- Your reply was very well thought out and articulated. Thanks for kicking this discussion off with food for thought.

 

 

.

[alex_kyuss]

Cheers for everyones help on this one.

I completly agree with the burn no bridges comment.

Basically what I was thinkng of was, The company I work for at the moment I pay about 20 % tax on what I get which is fine, on my second job I get payed more per hour, but because its my second job theres a huge tax bill on the end of it (both PAYE). I was thinking that maybe if I go self employed I would end up better off, although I don't think you pay NI on second jobs so it might just work out the same. But I thought it would be easier when I start doing some driving jobs.

cheers

[zonino]

your NI contributions are worked out on how much you make a week, not how much you make a week with job A.

 

it is possible to split your tax-code between the two jobs, you phone up El Tax Office and say "I'd like to split my allowance over the 2 jobs I have please" and they'll send out a notice to both of your employers saying "this is XXX's tax code for this year. please adjust your records"

 

you can end up "better off" self-employed as you can offset certain expenses against your income (the stage for example)

 

anyway, I'm off to read more about tax. yay ;)

[Seano]

But I thought it would be easier when I start doing some driving jobs.

 

Would agency driving work not be PAYE anyway? It always was whenever I did it.

[alex_kyuss]

hey the temp agencies I have been talking to have said that they don't mind either paye or self employed.

[zonino]

is that they don't mind you being self employed as well, and they will pay you through PAYE, or they will sub-contract out to you?

 

I'd be interested to know which temp agencies you are looking at that will sub-contract you!

[alex_kyuss]

Hey the temp agency was Protemp and they said that they would sub contract me, which seemeda fairly good deal, I didn't on the other hand talk about pay. Although I presume that it wouldn't be any different

Cheers everyone for your thoughts they've been really helpful.