Domestic Cleaner - Employed Or Self Employed

[Cantthinkof12use]

Hi I did recently ask this question as per the link below but I'm still really confused!! Need help please

http://www.theanswerbank.co.uk/Business-and-Finance/Question1298351.html

Basically I'd like to help out a local person with her housework (she is looking for a cleaner) but If I do this I want to declare my income although it will be minimal so won't be paying tax on it. It's just to help someone out and get me out the house while kids are at school and for a bit of pocket money.

Anyway I looked into this and if I register as self employed it said I might be classed as employed instead as I would only be working for one person. As far as I can make out, if I were to be classed as employed then the lady who only wants help with housework, would have to register with HMRC as an employer which seems utterly ridiculous to me and I wouldn't want to ask her to do this as she is elderly and really wouldn't understand all this.

I have rang HMRC and have been told by one person there that I would be self employed and by another that I would be employed!!

I'm tempted to just register online as self employed but I would have to give the ladys name address etc and I suppose HMRC would contact her to ask her to register as an employer.

I can't believe how hard HMRC make such a simple job, I really want to help her out but this really puts me off and I would rather not bother.

Does anyone know anything about this please. Thank you.

[factor-fiction]

I'm sure self-employed plumbers, decorators and gardeners don't have to list the names of all their customers so I'm not sure you would have to name your customer.

[Cantthinkof12use]

Thank you factor fiction, I did start filling out self employment registration online just to see what it's like and there was a question do you work for one person? If I put yes, then would have to fill in name and address

[Buenchico]

I've been both 'employed' and 'self-employed' over the years (sometimes at the same time). I can assure you that you will have no problems registering as self-employed. It's a tedious process, involving getting a Government Gateway online account, but not a hard one. (Where you need to give a name for your business, just fill in your own name).

You will qualify as self-employed as:
(a) you will be available for similar work elsewhere (even if you choose not to take any on) ;
(b) your times of work will be open to negotiation between you and the person that you'll be working for (in the same way that a self-employed plumber might agree a suitable time with you to work in your house), rather than being a pre-condition laid down in a job advertisement by an employer ;and
(c) you are not seeking, and do not expect to receive, the statutory paid holidays and employment protection rights that are available to employees.


>>>I'm tempted to just register online as self employed but I would have to give the ladys name address etc

No. The address of your business will be your home address, not that of the person that you're working for.

[Buenchico]

Crossed post!

>>>there was a question do you work for one person? If I put yes, then would have to fill in name and address .

Just put 'No'. There are plenty of self-employed people, such as graphic designers, who start out with a single client. Some of them might go on to work for dozens of different clients, whereas others simply keep on working for just one client; it doesn't change their self-employed status.

[Cantthinkof12use]

Thanks for your advice, I'm probably stressing out far too much!! If I put no to working for one person, what happens if I was ever investigated? (I can hear you laughing ha ha saying yes you are stressing too much!) I would keep records to show what I've been paid, wouldn't that show up there that it was only for one person?

[kloofnek]

What a palaver!!!Can you not just go and clean for her ,she pays you..that is that.From what you say,this is just a on-off little job to help the old lady and a little occupation for yourself,when I say "occupation",I mean to just to get out of the house.
Are you in receipt of any benefits and that is what is really worrying you...from the sound of it ..no..otherwise you would not be bothering with the HMRC,who are literally hopeless,found this from past experience.

[Cantthinkof12use]

Just the usual child tax credits, my husband works full time

[kloofnek]

mmm...child tax credits,don`t know anything about these.
Are you planning on actually starting a little cleaning business or just plan on this one job?If the latter,could you just not just go and do it and get paid in the hand...not going to be much,is it,why worry about telling the HMRC etc....or will this be unlawful,would not like to advise you into a life of crime ""

[Cantthinkof12use]

Hi no at the moment I would only be looking at doing this one job, I think I just worry incase someone would drop me in it (not that I can actually think of anyone who would) but you never know! Also I would like to be able to tell people that I've got a little job but wouldn't dare if it wasn't above board again, incase someone dropped me in it. I just think for the sake of declaring it it far outweighs the worry of not for me. Thanks

[EDDIE51]

Buenchico I work for a job agency but the agency charge £6 30 an hour for me and another £6.30 for themselves which makes me very expensive. I have been thinking for a while that just working for myself would be better . So can I register as self employed? I have enough contacts from the places I have worked at to get plenty of work. I suppose if it is possible I just submit an invoice for the hours i do? ( sorry for hijacking the thread)

[Buenchico]

Cantthinkof12use:
I remain confident that you'll be able to register as self-employed (with no problems). Further, I can't see that the person you'll be working for would want to deal with the complexities of being an 'employer' (for HMRC purposes) as that involves completing monthly returns, paying you statutory holiday pay and offering you a pension scheme!

EDDIE51:
Going self-employed might well be your best route. I work for two traffic survey firms (although I do at least 95% of my work for just one of them) and simply submit invoices for my work and expenses to each of them.

[kloofnek]

Well good luck and enjoy your little job.x

[pixie373]

Eddie- that's exactly what my sister and i did. Only the agency had been taking two thirds of the pay. Never regretted it- only that we didn't do it sooner.
ctootu- yes, you can be self-employed. They don't know or care how many clients you have. You are really registering to say that you are responsible for your own tax. So they are quite happy with that.

[andres]

Just get yourself registered as self-employed . Fill in the tax forms each year. If you take into account your personal tax allowance you might not earn enough to have to pay tax. You will have to pay National Insurance self-employed stamp but there again if you are not earning enough you might not even have to pay this ?(Not quite sure of the amounts).
Just go for it, stop worrying . As long as you keep everything above board what on earth do you think will happen? . Who knows ,in time you might even be running your own cleaning agency. Nothing ventured---nothing gained. Good luck !!!!!

[Cantthinkof12use]

Thanks everyone you've all been very helpful