# Self employed and working for an agency tax questions



## Guitarjon (Jul 13, 2012)

Hi everybody, 

I am looking to be self employed in the near future. I currently work for a teaching agency and want to use this as a fall back if my business doesn't work out for what ever reason. 

I I'm starting up a new account for the business and registering it in the next month so I'll need to do everything. Properly such as book keeping, income and expenditure. It's all a big learning curve. 

Couple of things I'm not sure about. To be honest I probably need to give HMRC tax office a call and ask the questions but I want to know how it will effect me being self employed and still on the books for the teaching agency?

Obviously I will be paying taxes and national insurance contributions but I don't want to pay more than I have to. I know as a business you can opt to pay the minimum NI contribution. If I pay it through my company would I need to pay it on the teaching agency?

Don't worry I'm not trying to get out of paying anything but I don't want to pay through the teeth when I don't need to.

Or does the business still have to pay the NI and tax seperatly whether or not it's the same person. It will be me only working for the business.


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## Naddy37 (Oct 27, 2005)

Easiest option, get an accountant and they'll do all that for you.


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## Andyg_TSi (Sep 6, 2013)

You will be taxed & Ni'd via the payroll on your agency work. (Class 1 NI)

when self employed you pay Class 2 (weekly £2.75) & class 4 NIC (tax on profits - 9% on profits between £7,956 and £41,865)

if both employed & self employed, then I beleive if your paying class 1 via PAYE, you wont pay Class 2 NIC (class 2 is the 'minimum' you refer to in your post) in certain circumstances

So, you'll be paying Tax, Class1, Class 2 (if appropriate) & Class 4 NIC

see here: http://www.hmrc.gov.uk/working/intro/employed-selfemployed.htm

You'll also register for Self Assessment. I would be inclined in your position to ring HMRC:

Advise your going Self Employed & need to register for Self Assessment

You will then have to decide if:

A - you keep your full personal allowance tax code against the agency work, or

B - have tax code BR (Basic rate) issued to your employer

in either case, all your tax will be worked out via SA return

a good idea is to put away roughly 27% of your gross Self Employment earnings to cover the tax & Class 4 NIC liability (if any) - should give you enough to cover off any bill & have a small float.

Remember SA is reported in arrears so you'll be paying:

A balancing payment for the return completed & payments on account based on your profits for the current year


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