Is running a company the same as being self employed.?
As far as payment of tax and national insurance yes you will be self employed and you need to keep strict accounts of income and expenditure of the company for tax returns and a note of all your personal income that is what you pay to yourself from your company in order to pay your taxes, if any, and National Insurance. For further information I recommend that you visit the HM Revenue and Customs website www.hmrc.gov.uk.bst they are brilliant at giving advice on business matters or the dti.gov.uk.
Yes you are self employed. You will be considered a subcontractor for the company you are working for. Check the tax laws in your country and make sure you have an accountant that can help you get your quarterly taxes payed so you don’t get hit with big tax payments at the end of the year, if the company you are going to work for doesn’t take the taxes out of your wages.
I’d say that if you’re submitting invoices to be paid instead of a time sheet, you’re self employed. However, maybe you’d better check with an accountant to make really sure of where you stand with this. Here in Canada, I believe that your self-employed status can be questioned if you only ever get paid by one place through the year. Accountants cost money but are very worth using so you can avoid trouble at income tax time. They can save you more than you pay them.
If you are not employed by the company you are working for but have a contract to DO work for them & derive your income by invoicing them for services rendered, and you pay your own taxes & expenses, then you are a business entity supplying a service, which means you are self employed. If I can give you some advice re entering into the world of self employment, always make sure that payments due never exceed accounts received. That is to say , keep an eye on your costs, sometimes self employment is not all that profitable, but I wish you good luck and hope that fortune smiles upon you.
