Advice please - do I need to be MIP

numbersishard
numbersishard Registered Posts: 12 New contributor 🐸
in General accounting discussion
Hi

I've been approached by an ex-employer to carry out some payroll and simple bookkeeping, invoice processing, cash, receipt and VAT books, VAT return etc on an 'outsourced' basis i.e. I will not be actually employed by them. They are offering me in the region of £120-150 per month. I was just wondering, if I accepted this offer would I need to register as a MIP and therefore obtain the PII etc etc.

Any advice would be appreciated as when I've looked into costs of MIP it seems its about £300 per year (is that right??) and by the time I take that off and the extra tax I'm not sure it would be entirely worth it.

Thanks in advance for you help.

Comments

  • KaelaH
    KaelaH Registered Posts: 131 Dedicated contributor 🦉
    There are a few factors to consider before you decide whether to take this offer. Firstly, are you employed elsewhere? Would you look to offer services to anybody else? In order to work for this company without being employed you'd need to register as self employed with the HMRC (however you cannot be self employed if you are only working like this for one company or if they are controlling the hours etc you're working, see guidance in being self employed) http://www.hmrc.gov.uk/employment-status/index.htm#1
    Unless certain conditions are being met you should be on payroll.
    Secondly, if you do provide this as a self employed service then I do believe you'd need to register as MIP, you can confirm this by contacting the MIP team, they are very helpful. There is a Reduced fee for members earning less than £5000 per year, would cost £50 to register and, if you're taking out PI insurance you'd be looking at around £47.50 so this could cost you less than £100.
    A lot does depend on your whole circumstances. Hope it helps
  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
    Self employment

    Hi

    I have to disagree with something Kaelah said. If you are a sole trader you can do work for just one company. The onus is on the company to get the status correct not you. Any penalties etc would be the companies not the sole trader. However if the OP is operating through a Limited company then you need to be aware of the IR35 implications.

Categories

Privacy Policy