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Self employed labourer?

Discussion in 'Trade Talk' started by Ian H, 16 Sep 2020.

  1. Ian H

    Ian H

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    How will that work?

    My Son has recently left college, got his CSCS card and started (today) working for a guy who fits ducting in pubs, restaurants and similar places.

    I know he won’t get holiday or sick pay but how does he go about paying his tax and NI?

    Any advice appreciated.
     
    Last edited: 17 Sep 2020
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  3. bennymultifinish

    bennymultifinish

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    if he’s self employed he needs to register with hmrc for self assessment.
    NI will come at the end of the year when he pays his tax.
     
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  4. bennymultifinish

    bennymultifinish

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    out of interest what’s his trade and qualifications, and why ‘labourer’.
     
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  5. Ian H

    Ian H

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    He did mechanical and electrical engineering at college, passed that and then got the H&S Operatives CSCS Card. I say labourer because he has no real world work experience (other than washing up in a pub and working in a pet shop) so for now will be learning on the job and doing as instructed.
     
  6. Ian H

    Ian H

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    So he needs to be saving up enough to pay his tax and NI at the end of the year? Will that be about 25% of his earnings?

    I might charge him 25% rent and give it back to him at the end of the year.
     
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  7. Mottie

    Mottie

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    When our son started work, we decided to charge him rent, save it up for him and give it back to him when he buys a house. He's 34 now and paying exactly £1k a month rent to a landlord but still, that £8 will come in handy when he decides to buy...:rolleyes:
     
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  8. Ian H

    Ian H

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    I’m hoping to get rid of this one before he gets to 20
     
  9. Mottie

    Mottie

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    Good luck with that!
     
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  11. Charlie George

    Charlie George

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    If he works with CSCS card his earnings will be after tax paid @20% ie if he earns £500 he will recieve £400 after tax, then at end of tax year he will do self assesment tax return which includes all his expenses etc ,which will calculate how much tax and NI he owes, and almost certainly he will recieve a rebate because more tax has been paid than is due.
     
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  12. Charlie George

    Charlie George

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    Just to add Ian if as likely his earnings are £15k to £20k he will recieve back most of the tax he paid,possibly all.
     
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  13. Seafarer1966

    Seafarer1966

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    Good luck to the lad. Life is harder for the younger generation.
     
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  14. Ian H

    Ian H

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    Thanks :). Would he register as a Sole Trader or Sub Contractor under the Construction Industry Scheme (CIS)? I’m sure he will end up telling me but if we can talk it through together and both understand it will be much better.

    I think he will be earning around £18800 if he has no time off so maybe £15000ish in reality. Overpaying and getting a rebate would be great for him to put towards his car insurance.
     
  15. Ian H

    Ian H

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    Thanks very much (y)
     
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  16. Ian H

    Ian H

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    He is enjoying the work so far. He had 3 days with no work due to waiting on other trades but other than that he’s up and out early, home around 4 and going to bed earlier :LOL:

    He gets paid with the 20% already taken off and he just got a letter from HMRC today :cautious:

    He has done a further 2 CSCS tests since he got his original one, I think he said he did H&S, then Blue then Green.

    He just needs his own house now :LOL::LOL:
     
    Last edited: 15 Oct 2020
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  17. Vinty

    Vinty

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    If he is self employed he can claim expenses to reduce tax liability.
     
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