Questionnaire: Am I Self-employed?
You may be working for a company but doing your own work on the side. Does this make you self employed? You can own your own business but not be classed as self employed. Take our questionnaire to see if you qualify. If you receive any payment for work but not through a PAYE system, then you are self employed. If the person who is paying you is not sorting out your tax and National Insurance Contributions within the payment, then the work you do for them is classed as self-employment. You can work from home but not be classed as self employed; alternatively, you can work for many companies on a self employed basis.
1. Do you have a job but run a business on the side?
- a) No, I only work for one employer.
- b) Both, I do some work for my employer and a bit of work for other clients.
- c) I have lots of clients for whom I do work for.
2. Do you have any employees?
- a) Yes, I have a lot of people to whom I give work.
- b) No, I work by myself.
- c) Sometimes I give my work to other people and pay them.
3. Do you pay tax?
- a) Yes, the company I work for deducts tax.
- b) Yes I am responsible for paying my own tax.
- c) No I don’t pay tax.
4. Do you pay NICs?
- a) Yes, the company I work for deducts NIC.
- b) No I don’t pay NIC.
- c) Yes I am responsible for paying my own NIC.
5. Do you work from home?
- a) Yes, I work from my own home
- b) No I rent/own office/commercial/retail space.
- c) No, I work from my employers office/commercial/retail space.
Points are given like this:1. a) 1 b) 2 c) 3
2. a) 3 b) 1 c) 2
3. a) 1 b) 3 c) 2
4. a) 1 b) 2 c) 3
5. a) 3 b) 2 c) 1
Add up the scores from your answers.
How did you score?
5-7: You are classed as an employee and are paid by someone else through the company’s books. Your company should pay your tax and NICs for you.
8-10: You may be employed by someone but you also do work elsewhere for which you get paid. If the company or individual you work for does not pay your tax and NICs, then you should class yourself as self employed. Any money you earn must be declared and tax must be paid on it.
10-15: You are a self employed person. Whether you operate as a sole trader or as a limited company, you are responsible for paying tax and NICs. You should register as self employed and find out what your responsibilities are and what you may be entitled to. There are many benefits for working as a self employed person but it is imperative that you are clear on what you have to pay and to whom. The penalties are severe should you fail to declare everything you earn.