UK Employer vs self employed


Joined
Mar 19, 2014
Messages
1
Reaction score
0
Can anyone help me distinguish the difference between an employer and self employed ?
I think self employed is a sole trader. In terms of taxation, they pay different NIC, i.e. Sole trader pays class 2 and 4 whereas employer pays class 1 on behalf of employee and class 1A for benefits

How do you decide which one is which?

Thank you very much
 
Ad

Advertisements

Becky

VIP Member
Joined
Aug 26, 2011
Messages
550
Reaction score
54
I think there might be some confusion here - sole traders can have employees, therefore you could be both self-employed and an employer.

As a sole trader, you are responsible for your own tax affairs, which includes paying Class 2/4 NICs. If you also have employees, then you are responsible for paying PAYE and Class 1/1A NICs etc to HMRC on behalf of your employees.

I would strongly recommend speaking to an adviser before you commence trading, and there is also lots of guidance available on HMRC's website:

HM Revenue & Customs: Starting a business

Hope this helps!
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top