Accounting - Spot On Payroll - http://www.spoton.gbr.cc

About Us - Spot On Payroll - http://www.spoton.gbr.cc

We use a one price policy which means the price we charge you per week, or month, is the only payment you will make.

No additional charges are made for completing VAT, Accounts or Year End Returns.

Just because you are self-employed does not mean that in all work you undertake you will be treated as self-employed.

Being self-employed and employed are not mutually exclusive. You can have several self-employments and several employments in a tax year.

Self-employed Generally, if you work from home, from your own studio, or share a studio with other freelance artists and do work for a variety of people, then it is highly likely that you are self-employed.

initial Consultation is completely freeSpot On Payroll - http://www.spoton.gbr.cc

Mixed employment This may seem an obvious distinction but that isn't always the case. It's possible to work freelance and be generally regarded by the Inland Revenue as self-employed and yet find that in certain situations you are treated both by those you are 'working for' and by the Inland Revenue as being 'employed'.

The distinction in terms of its effect on you is simple. If you are self-employed you pay your own tax directly to the Inland Revenue and can claim legitimate business expenses against tax. If you are an employee, tax and National Insurance will be deducted from all payments you receive and allowable expenses are limited to being 'wholly, exclusively and necessarily' for the purposes of your work.

Employed Situations in which you might be treated as employed even though you regard yourself as self-employed include:

occasional and part-time teaching

residencies/commissions particularly with local authorities

situations where you work with one client on a frequent basis particularly if this is at their place of work

For example, if you believe you are self-employed but do most of your work in a design studio, in a fairly junior position, directed and controlled by more experienced designers, then the Inland Revenue could argue that you are an employee of the studio. Having a short-term contract and not being paid for holidays or sickness doesn't make you self-employed.

Contracts Any contract covering your work must be drawn up carefully, and either the client or yourself should take professional advice from an accountant or solicitor experienced in self-employed/employed status disputes. The fact that a contract states you are responsible for your own tax does not make you self-employed.

Conditions for self-employment The points that the Inland Revenue look at in deciding this are:

Does anyone else directly control your work?

Can you make any more money by the way you organise your work?

Are you required to provide cover in your absence or get some one else to do the work?

Where do you do the work and what equipment do you use?

Have you invested money in your business, eg in a studio, equipment or developing a portfolio?

Can you work for other people and refuse the work?

Does the person you are working for see you as integral to their business