Self employed how much will I be getting taxed

[speake 485]

Hey guys,
ive finally decided to except a new job offer of working at a beauty salon for the first time. On initail interview i was told it was a 40 % commission on each client i treat so im classed as self employed and will have to do my own tax. I was too concerned with it being a new salon that clientelle may be slow and i might not earn enough ,so they offered me a fee of 6.75 an hour for part time supervisor/beautician, with a review after 3 months and if all is well commision on top of my hourly rate.
So what i want to know is do you guys think 6.75 is good for part time supervisor as this is my first salon job as ive only worked in retail.
And with working out the hours i work i will be bringing home £612 a month for 3 days work before tax. So what will i be bringing home once ive paid tax as ive never had to do it myself. Ne self employed people know?
And do you think this is a good opportunity?

 

[redsadie]

Hi hun and glad to see you made a decision

As for paying your own tax, I'd've thought that as she's paying you a wage, she would have to pay the tax, not you!

To be on the safe side, I would ring your local tax office on Tuesday and just have a chat with them, they'll know

Good luck!

xx

 

[linzi]

It does sound like you'll be employed?

However, if you will be paying your own tax, the best idea is to put around 30% of your income into a high interest savings account. It might seem a lot but, come January, you won't get a big shock :irked:

 

[loubylou]

It does sound like you'll be employed?

However, if you will be paying your own tax, the best idea is to put around 30% of your wages into a high interest savings account. It might seem a lot but, come January, you won't get a big shock :irked:

This is excellent advice,
but i too think as you are getting a wage you will be classed as employed, therefore the employer will be responsible for organising tax and Ni,
give your local tax office a call hun, they are surprisingly helpful hth

 

[Martin Duffy]

Hello, I personally think you're technically being employed; I had to go through all this went I first went self-employed to make sure there would be no complications later on. HM Revenue & Customs has a page on this (see link below), but here is the relevant determining factors, hope this is of some use!

Broadly, you are

• self-employed if you are in business on your own account and bear the responsibility for the success or failure of that business, and
• employed if you personally work under the control of someone and do not run the risks of having a business yourself.

Employee
If you can answer 'Yes' to all of the following questions, you are probably an employee.

• Do you have to do the work yourself?
• Can someone tell you at any time what to do, where to carry out the work or when and how to do it?
• Do you work a set amount of hours?
• Can someone move you from task to task?
• Are you paid by the hour, week, or month?
• Can you get overtime pay or bonus payment?

Top​

Self-employed
If you can answer 'Yes' to all of the following questions, it will usually mean you are self-employed.

• Can you hire someone to do the work for you or engage helpers at your own expense?
• Do you risk your own money?
• Do you provide the main items of equipment you need to do your job, not just the small tools many employees provide for themselves?
• Do you agree to do a job for a fixed price regardless of how long the job may take?
• Can you decide what work to do, how and when to do the work and where to provide the services?
• Do you regularly work for a number of different people?
• Do you have to correct unsatisfactory work in your own time and at your own expense?

HM Revenue & Customs: IR56 - Employed or self-employed? A guide to employment status for tax and National Insurance contributions

 

[hippy-chick]

I wouldn't work for £6.75 per hour, is that the minimum wage now? If you are on a set wage per hour then you will be employed, and they will have to pay your NI and tax.

If you go self-employed you have more chance of making money, and it really isn't that frightening once you get into the swing of things.

If you are reliant on a set amount of money coming in per month then the employment route is for you.

HTH

 

[VillageNails]

if you are to be employed then the employer should supply all your products etc - you wont make any money otherwise.
what about commission on any of your retail sales?
good luck

 

[jojosnails]

I think £6.75 is really good considering its your first job in this line of work! I have never earnt that much per hour, and i have been working for 3years at several places! Dammit!

 

[speake 485]

just wanted to add i spoken to the directors i will be self employed as are all the other staff but they will pay me a fee at the end of each week.So im now enquiring into my tax and national insurance fees. I will not be supplying products everything is done for. I did ask for more money and they have upped my pay to £7.00 which isnt too bad as ive got a few more hours offered to me too.

 

[Martin Duffy]

Hello! When enquiring into your tax etc I would strongly suggest you ask them if you're employed or self-employed, as regardless of what basis the director's tell you you're employed on doesn't matter. If they're deciding on an hourly rate & they're paying it to you, and supplying you with materials then I'm 90% certain by law you're employed. It's best to be sure now & avoid later problems - a lot of places get people in on a supposed self-employed basis & treat them as employees because it's easier for them (i.e. no employers liability, tax contributions etc).

 

[stoney]

Yes I agree with Martin.

Not only that but if you are 'Supervisor' then I assume they have given you a certian amount of responsibility for the running of THEIR salon? THEY decide your hourly rate, THEY provide all materials, THEY give you a title? but pay no tax or ni for you?? Not sure that works somehow.

If you are self employed then your tax is based on your earnings minus your expenses, i.e materials, rent, etc. The way they are proposing, you are earning them a vast amount of money, and they have no legal obligations to you as an employee, you have no rights.

I would talk to them again and get something in writing.

 

[hippy-chick]

they could get into a lot of trouble for assuming that they can do this, from what you tell me you are employed, simple as that.
If you have set hours, set wage and they supply everything you are employed.