Long Trem Sub-contracting.

[dunt]

id be happy with the earnings going on that basis. but i just dont want to get into trouble with the hmrc.

[whistle]

Get an accountant and leave that to him.Thats what i did.No matter what you charge or earn you will have to pay tax etc ???

[dunt]

this is the thing, my accountant is my sister-in-law, i am starting to doubt her knowledge of accountancy as she keeps on looking advice from her coluges. she has not give me any advice like you guys have, all she said was "we will get you regestered as self-employed, then as a sub-contractor" no other advice, just work on.

it left me feeling worried as ive heard of some of the things like staggered invoicing, quoting other jobs.

but if i dare go to a different accountant, id be shot by my wife.

[Wooly-bobs]

Should get an accountant that isn't connected to you in any way.

You can expect a professional service from them and they won't do the 'done as a favour' level of service to you.

Can't push a friend or a relation the way you can someone your paying for properly

[arfur mo]

being self employed is a great feeling and way of life, but please please remember, self employed means no holiday pay, no sickness pay - even if you fall of their ladder, no lay off pat when it's quiet and no dole.

if you have a few rough days the company can simply stop using you, and your left high and dry. when you don't want to work they may insist and you can't say no if this is your only backbone client

i also agree with what others have said, your very right and wise to tread cautiously, and with all respects you have to dump the sister-in-law as your main adviser, especially if your already concerned about her abilities unless she is going to pay any fines, interest on back tax caused by her incompetence.

3 most important people for any chance of a succesful buisness -:

1) Your partner - who has to be in full agreement and supportive (hard times can bring real pressure and rows).

2) Accountant - see all the other stuff.

3) Bank Manager - have a word tell him/her your plans, don't just suddenly have inconsistent funds (or lack of) in your account, they have software which detects and flags 'troubled' accounts.

about 15 years back hmrc went after the building trade big time aimed at brickies and labourers, then chippy's and electricians came into view. a firm i did a lot of security work for had 30+ sparks all as subs and got creamed, because they went back 7 years on every one but crafty baskets did a different 7 years for each subby using 'discovery' clauses.

i was not affected as it was clear i had plenty of other independent customers, the rule of thumb (as was told later by this company) is you need invoices and payments from different sources, also differing amounts and at irregular periods for both invoicing and receiving payments.

you also need to show you are putting you own money at risk by working before being paid, so on occasions being paid say after 90 days. on top of that you need to show your buying your own working supplies, fuel and parking just won't cut it.

be careful to, if you sub for the same company, but from different branches/departments. the tax inspectors are not daft trust me, only daft people treat them as such. if you want proper advice simply ask the tax office about your plans, usually they are very helpful in every aspect especially when your being upfront and totally honest.

whatever happens, i hope it works out

regs

alan