Self Employed Carer

A number of agencies prefer you to be self employed. This gives you the flexibility to work as you please, but there is a bit of paperwork necessary. The good news is that the process is not difficult, and is mostly done online or by phone.

Your phone

Your current smartphone should have all the stuff you usually enjoy using, e.g. your email, whatsapp and preferred social media. Your agency and prospecive clients will need to speak with you and you will need to make some calls to sort out your self employed status. Make a plan to be able to have telephone contact. Find out which deals will suit your needs best, perhaps start off with a Pay As You Go, If you find yourself without wi fi access, you can review your package, but don't lock yourself into an expensive package you don't need. 

National Insurance Number

You need this whether you are going to be self employed or not. If you do not have one you need to apply by phone on 0345 600 0643.  Before you phone, have on hand your passport, residence permit if applicable, plus your base address and telephone  number. The operator will ask you a  number of questions and then they will give you a reference number which you will have to write down. They advise you will have to wait 10 days to receive the form. They will also give you a number to call if the form fails to arrive.

Once the form arrives fill it in and return it via the postage paid envelope they send with it. If you are on a EU passport you may have to follow different procedures but the form explains things clearly for each situation.

Some agencies might tell you they do not need this NI number right away which is great.  However I have found that it might help with getting a bank account so I advise that you make this a priority immediately on arrival in UK.      

HM Revenue & Customs (HMRC)

If you are going to be self employed you need to register as soon as possible but at least within twelve weeks of starting work. If you are not starting within 28 days, do not register yet.

You need to have your NI number before you register for self employment.

You can call the Self Employed Registration helpline on 0300 200 3504 or you can register online at www.hmrc.gov.uk

Once you are registered HMRC will send you a Unique Tax Reference number that you will use when filing your annual tax return.

Tax Year

The tax year starts on 6 April and ends on 5 April the following year. The deadline for the return is 31 January following the tax year end. eg 2016/17 tax return must be filed by 31 January 2018. Penalties will be imposed for late filing.

National Insurance

You will pay NI contribitions through your Self Assessment return.
If your annual self employment profits are below GBP 5 965 you will not have to pay, otherwise you pay GBP 2.80 per week
You will also pay  9% of your self employed profits between GBP 8 060 and GBP 43 000.
At the time of writing this there are changes being proposed to the amount of NI to be paid by self employed persons so the figures quoted here may change. Please check online for up to date figures.

Income Tax

At the time of writing this your first GBP 11 000 is tax free. Thereafter you become liable, and your other income sources might have to be taken into account. Payments are due by 31 January and 31 July. You might find life simpler if you engage an accountant to assist in completing your return.  Please check online for the current tax free earnings figure.  

Record keeping

Whether you complete your own return or engage someone to assist, you must keep very detailed records including your income receipts and proof of all purchases and expenses incurred. Should HMRC have any queries, you have to keep records for five more years after the normal tax return deadline.

Allowable expenses

• Travel costs not refunded by your client.  This includes travel to and from training. 
• Cost of training courses 
• Magazines, manuals and subscriptions related to your work
• Uniforms and protective clothing
• DBS and update service costs
• Carer Insurance policies, Public Liability and Personal Accident
• Accountancy fees
• Mobile phone costs for work related calls
• Postage and stationery, eg invoice books

Second nature

If you have been used to being employed and having everything done for you, this might all seem a bit scary. With practise you will develop good filing habits and the process will become second nature to you. It is a small sacrifice for the freedom you will achieve as a self employed person.