Just started this week with new agency. Could anybody please keep me right about how I pay my own tax etc, I dont have a clue haha. Thanks in advance folks
First thing to do is to register as self-employed with HMRC, there are fines if you don’t do it asap - information here:
hmrc.gov.uk/selfemployed/reg … elfemp.htm
Then it really depends on what the situation is as regards how much work you will be doing, whether you are going as a sole trader, Ltd Co. etc. It may be worth asking the agency’s advice but always get a second opinion before committing yourself to anything they offer, especially if it’s an umbrella scheme.
See how much you earn after taking off all your expences at the end of the tax year.
Subtract your tax allowance for 2-13/14 £9440, then pay 20% of the remainder.
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All the disadvantages for just an extra one pound an hour ?
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Thanks for all the info folks, its a total pain in the arse but they are only agency with good work
You should have understood the ins & outs of working S/E for the agencies BEFORE signing up.
Putting all the paperwork in place both with HMRC, the bank and (do I hear someone shout …booooooooooo) the umbrella/payroll Co you`ll be forced to use, beforehand
Booooooooooooooo
Here’s another one…Boooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo 
youngpretender88:
Just started this week with new agency. Could anybody please keep me right about how I pay my own tax etc, I dont have a clue haha. Thanks in advance folks
Register with HMRC as self-employed, get yourself a good accountant, set aside of portion of your earnings to cover tax & NI, ignore the rants of Dieseldoforme about £1 an hour extra and lack of holiday pay, learn how to keep at least basic records, keep your receipts.
If you’re going to be self-employed, you’ll do better cutting out all middlemen, and getting the work lined up yourself as well.
After all, the main advantage is being able to invoice the rate that you set for yourself. 
Dieseldoforme:
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All the disadvantages for just an extra one pound an hour ?
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I went SE this week my rates went up £2 p/h, I also have a daily commute of 34 miles each way, think it’s around £180 tax break for 5 days return alone.
Then have both my contract phones they allow you 50% of the bills and food and any work costs, clothes, safety gear, nights out hell if I fancy a new sat-nav or PC I can claim on those too etc… I read somewhere for an employee on £8 p/h to cover holiday pay costs .88p? (My rates used to be £8 then £9 after 8 hours)
Will give it a month or so and see how it works out always have the option of going back to PAYE, also I only passed my C+E in January so only planning to do this until I’ve been driving around 2 years, then il look for a good full time job where I won’t take a pay cut. (Have dreams of international work but let’s see what happens)
My partner is due our first baby in a couple of weeks so all I’m interested in ATM is money for us
Ryy86:
I went SE this week my rates went up £2 p/h, I also have a daily commute of 34 miles each way, think
it’s around £180 tax break for 5 days return alone.
Then have both my contract phones they allow you 50% of the bills and food and any work costs, clothes,
safety gear, nights out hell if I fancy a new sat-nav or PC I can claim on those too etc…
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Good Luck.
The 340 miles per week is worth £31. I wish I could run a car for 9 pence per mile.
Other essential expenses, including food & mileage, are also available to PAYE agency employees.
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Herongate:
ignore the rants of Dieseldoforme about £1 an hour extra and lack of holiday pay
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Some people cannot face reality.
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Dieseldoforme:
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Good Luck.The 340 miles per week is worth £31. I wish I could run a car for 9 pence per mile.
Other essential expenses, including food & mileage, are also available to PAYE agency employees.
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Thanks bud, don’t know how 340 miles is only worth £31 to you I get .45p per mile for first 10000 .25p afterwards, and with tax year ending in April il get all miles until then at .45p then it resets. I can run my old banger 1.3l tdi combi to work all week on £30 of diesel and I’m getting £15.30 each way go figure…
I enquired about P87 forms months ago and was un-eligible, those are NOT available to all agency employees.
You seem very against this idea? Have you tried this route in the past and are speaking from experience?
Ryy86:
Dieseldoforme:
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All the disadvantages for just an extra one pound an hour ?
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.I went SE this week my rates went up £2 p/h, I also have a daily commute of 34 miles each way, think it’s around £180 tax break for 5 days return alone.
Then have both my contract phones they allow you 50% of the bills and food and any work costs, clothes, safety gear, nights out hell if I fancy a new sat-nav or PC I can claim on those too etc… I read somewhere for an employee on £8 p/h to cover holiday pay costs .88p? (My rates used to be £8 then £9 after 8 hours)
Will give it a month or so and see how it works out always have the option of going back to PAYE, also I only passed my C+E in January so only planning to do this until I’ve been driving around 2 years, then il look for a good full time job where I won’t take a pay cut. (Have dreams of international work but let’s see what happens)
My partner is due our first baby in a couple of weeks so all I’m interested in ATM is money for us
AND. If youre a switched on guy, get registered on the Flat Rate VAT Scheme. You charge out 20% and get to keep 9% of it without any book keeping or receipts. If youre not confident then leave it, as although its a piece of p…cake, you can`t ■■■■■ with the VAT people.
cheekymonkey:
AND. If youre a switched on guy, get registered on the Flat Rate VAT Scheme. You charge out 20% and get to keep 9% of it without any book keeping or receipts. If youre not confident then leave it, as although its a piece of p…cake, you can`t [zb] with the VAT people.
Thanks monkey,
I’ll look into what you said, it’s all quite new and confusing just now but il learn what I can and can’t do with time. Was planning on keeping it as simple as possible for the first few weeks just claiming milage, phone and food to see how it turns out.
Ryy86:
I get 45p per mile for first 10000, 25p afterwards.. . . those are NOT available to all agency employees.
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OK. You obviously know what you’re talking about.
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Ryy86:
Dieseldoforme:
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Good Luck.The 340 miles per week is worth £31. I wish I could run a car for 9 pence per mile.
Other essential expenses, including food & mileage, are also available to PAYE agency employees.
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.Thanks bud, don’t know how 340 miles is only worth £31 to you I get .45p per mile for first 10000 .25p afterwards, and with tax year ending in April il get all miles until then at .45p then it resets. I can run my old banger 1.3l tdi combi to work all week on £30 of diesel and I’m getting £15.30 each way go figure…
I enquired about P87 forms months ago and was un-eligible, those are NOT available to all agency employees.You seem very against this idea? Have you tried this route in the past and are speaking from experience?
I’m not too well up on this stuff, but I think you’ll find that what you actually get is tax allowance on that 45 p per mile, in other words you won’t pay tax on 45p for every mile you travel.
With tax at 20% you will save 9p tax for each mile you travel, 340 miles saves you £30.60
Dieseldoforme:
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OK. You obviously know what you’re talking about.
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In my experience, in conversations I have had with staff at both the tax office, and 2 previous agency’s. Yes you are correct.
You obviously know something we don’t though, perhaps if you don’t believe me. Give the tax office a call and they will tell you the same as they told me. Employees are not entitled to anything you said unless it’s in an agreement with their employer/agency, even then it is not an entitlement but a mere perk.
hmrc.gov.uk/rates/travel.htm
45pence per mile upto 10,000 25pence thereafter, what is hard to understand■■?
Thanks
tachograph:
Ryy86:
Dieseldoforme:
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Good Luck.The 340 miles per week is worth £31. I wish I could run a car for 9 pence per mile.
Other essential expenses, including food & mileage, are also available to PAYE agency employees.
.
.Thanks bud, don’t know how 340 miles is only worth £31 to you I get .45p per mile for first 10000 .25p afterwards, and with tax year ending in April il get all miles until then at .45p then it resets. I can run my old banger 1.3l tdi combi to work all week on £30 of diesel and I’m getting £15.30 each way go figure…
I enquired about P87 forms months ago and was un-eligible, those are NOT available to all agency employees.You seem very against this idea? Have you tried this route in the past and are speaking from experience?
I’m not too well up on this stuff, but I think you’ll find that what you actually get is tax allowance on that 45 p per mile, in other words you won’t pay tax on 45p for every mile you travel.
With tax at 20% you will save 9p tax for each mile you travel, 340 miles saves you £30.60
Thanks for the reply, I was explained that it works like this.
Say you earn £500 top line that week and your milage allowance comes to £200 they subtract the 200 from 500 so you only pay tax on the remaining £300