Self employed labourer?

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.
 
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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.
 
out of interest what’s his trade and qualifications, and why ‘labourer’.
 
bennymultifinish said:
out of interest what’s his trade and qualifications, and why ‘labourer’.
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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.
 
bennymultifinish said:
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.
Click to expand...

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.
 
Ian H said:
I might charge him 25% rent and give it back to him at the end of the year.
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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:
 
Mottie said:
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 rent but still, that £8 will come in handy when he decided to buy...:rolleyes:
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I’m hoping to get rid of this one before he gets to 20
 
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.
 
Charlie George said:
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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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.
 
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:
 
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