I am writing to you as promised to help you to understand your employment status at Abertyt Hydro. I would like to start with an explanation of the difference between a contract for service and a contract of service which could be helpful to recognise your position. Contract of service relates to a person who is in employment, can also be described as a person being in service to an employer. Contract for service relates to a person who is self – employed and provides services to a client.
It is fundamental to consider the following criteria for deciding whether or not you are self-employed or employed by the company. You should answer few simple questions to be clearer about it. ...view middle of the document...
The very last point is exclusivity, you should consider number of different people you are working for.
Going through all of above criteria and relating them to your circumstances given I am sure that you are self-employed person as you have provided your own equipment, you have decided about client appointments, you have not been deducted with PAYE as well as
never been paid with any holiday or sick pay by Abertay Hydro and also you did not receive your P-60 form from them at the end of the tax year, because they treat you as self-employed.
In result of being self-employed it is your responsibility to remember about your tax liability calculation every tax year which begins on the 6th of April and ends on 5th of April next year. If you are resident in the UK what means that your presence in this country is at least 183 days or you are making regular visit to the UK averages 91 days then you are eligible to inform HMRC about your income and pay tax on it even if that income comes from overseas.
You as self-employed person are eligible and responsible to have a tax assessment each tax year. It can be done on your own or by your accountant, the HMRC then checks all information given. There is also possibility to calculate the tax due straight by HMRC. No matter which way of calculation of your tax you choose the first thing to be done is the completion of tax return. You can do it on-line using internet as well as to fill in the paper form.
If you choose the on-line submission the returning date is 31st of January following the end of the tax year, it is 3 months later than for the paper based tax return which is dated by 31st of October following the end of the tax year. For your tax year 2005/06 submissions...