Going self employed need help

[Adiuk]

Hi my name is Adi and i am new to these forums, i would appreciate any help you can give me.

I am currently employed but leaving in approximately 2 weeks to work on a self employed basis. I have read too much on the net and am now confused as what to do.

Basics of the operation:

I will be taking control of a kitchen within a public house with full autonomy over it. Myself and the tenant will be spliting food costs 50/50 and therefore all profit will be split 50/50

1 Am i business, freelancer, Partnership???
2 What kind of bank account i need
3 What type of book i will require for keeping records/what to keep

Copy of Agreement, might shed a bit more light on the situation

1. We will not charge you any rent for the use of the kitchen facilities.
2. We will continue to pay for the utilities used in the kitchen operation.
3. All food costs will be split 50/50 between yourself and **************.
4. All takings for food will be split on a 50/50 basis as per the food costs.
5. As the business grows we will take a view on staffing levels but in the meantime we will utilise the existing staff we have at no cost to yourself.
6. You will be responsible for devising menu costing of menus.
7. ********** will be responsible for the maintenance and repairs of the kitchen/ Restaurant unless caused by your own negligence.
8. You will have no responsibility for any contracts/Money owed to the brewery.
9. Whilst this is an ongoing arrangement a notice period of one month from either side should be observed to protect both our interests .
10. You will be viewed as and treated by the staff as a Manager with the deference and authority this level of seniority would command.



rr

 

[Bronze]

All the information you need is here :

www businesslink gov uk

 

[longleaf1]

I would take the view that you will be technically employed.
Not sure whether you would be allowed to do this on a self employed basis and i recommend you have a chat with HMRC first,

 

[Adiuk]

Thanks for the quick response had a look on there, i suppose what i am after is having it put in simplar terms, one thing i read says i will be a buisness then something else tells me i wont. :|

 

[DeanCo]

It sounds like you are an employee to me. You should read this: Employed or self-employed?

Also, there is some good information here: setting up a new business

 

[Bronze]

Thanks for the quick response had a look on there, i suppose what i am after is having it put in simplar terms, one thing i read says i will be a buisness then something else tells me i wont. :|

It's entirely up to you wether you become a company/sole trader depending on your circumstances. There's no simple way of deciding without doing your research/business plan etc

Only you can decide that. If you know of a decent accountant it's always worth getting some advice from them. For now business link will have everything you need information wise but be prepared to spend a few days reading through it.

 

[Adiuk]

Thx for your replies, will have a look at the links you have suggested

The agreement i have states that i will be working on a self employed basis.
So therefore not employed..

 

[DLH Marketing]

Have a word with Business Link too. I don't always rate them but on things like this they should be able to advise. When i became self employed HMRC were surprisingly helpful too.

 

[DeanCo]

If you decided to go self employed and it is decided by the HMRC, in several years that you have been an employee it can be very expensive mistake.

 

[Bronze]

Have a word with Business Link too. I don't always rate them but on things like this they should be able to advise. When i became self employed HMRC were surprisingly helpful too.

I too have had very positive experiences with HMRC when asking for information. They seem to be very informative.

 

[Adiuk]

Ok thanks, i will give both of them a ring and see what they say

 

[longleaf1]

Thx for your replies, will have a look at the links you have suggested

The agreement i have states that i will be working on a self employed basis.
So therefore not employed..

Just because you have an agreement stating that you will be working on a self employed basis doesnt mean that HMRC wont see you as an employee.

 

[Adiuk]

Yes i have realised that now after reading through the links you all gave me.
Therefore would i be better going for an agreement that i would pay rent for the kitchen, utilities, my own staff, full costs of stock and employees if required - so i would be classed as a business?

Or

Is there a way that it can be worked around so that i can say i am self employed and declare what profit i make whilst paying my self a wage out of that?

 

[Brad Haddin]

Best is to find out things in which you are interested in. BC the more you have interest the more you have chances to go ahead in your business..

 

[longleaf1]

depends whether you want to be a business or be an employee.
the option you described in your original post describes an employee but just being paid differently and you not gaining all the perks such holiday pay etc etc.
not sure you could get around it to be honest!

 

[Homshaw]

If you decided to go self employed and it is decided by the HMRC, in several years that you have been an employee it can be very expensive mistake.

As long as he is not a Limited Company it will be the bar owner's problem not his.