Self Employed

[mosesg]

I recently left my staff position to go to another company as a self employed ltd company. I am now unsure about the job, but it helped me get the step into self employment. What I would like to know is ther any rules in place as to how long you have to stay away from your previous company before you can return as a self employed contractor.

[Buenchico]

There are no universal rules (although, of course, each company is free to determine its own protocols).

I've known several people who've left an employed position on a Friday but who've then gone back into the same office, doing the same job but as a self-employed consultant, on the following Monday.

Chris

[mosesg]

Thanks Chris, I will find out what my old company's rules are. Sometimes it is better the devil you know.

[TonyV]

mose - have you set you set youself up as ltd company- if you have you are free to trade - but why not just be a sole trader - Ltd while might feel nice, will incurr a lot more charges

[Buenchico]

Just an additional thought, Mosesg:
I hope that you're not telling HMRC that you're self-employed. You're not!

If you've set up a limited company you're now an employee of that company (as well as being its owner and director). You must (in your role as 'employer') get hold of the paperwork for deducting PAYE and National Insurance from your 'employee' (i.e. youreslf). You can't just pay the (lower) self-employed National Insurance contributions. You (as an individual) must pay the employee's NICs while, at the same time your company must pay the employer's NICs. If you get it wrong you could be hit with a very big bill at the end of the tax year!

This isn't written purely from 'theory'. I used to operate a one-man business (drafting wills), which was run as a limited company. HMRC actually sent me (three times!) the paperwork in relation to self-employment before I managed to get it through to them that, as the director of a limited company, the law regarded me as an employee and not as self-employed!