Becoming Self-Employed

My current employer has asked that I look into becoming self-employed.  I'm a USC, UK Resident, Non-Domicled here in the UK.  What tax questions should I been investigating? I have a UK accountant, who I'll be speaking to, but want to arm myself with all the questions b/f seeing him. Thanks!

My current employer has asked that I look into becoming self-employed.

Just because the employer wants you to be self-employed, rather than employed, does not automatically make you self-employed. The employer is probably doing this for the purpose of saving NI contributions, but there could be other reasons, such as the easier ability to end using your services at some time in the future.

Without naming the employer, what sort of job do you do? And does anyone effectively instruct you what to do each working day?

Yep - I realize that it's not flipping a switch, and viola I'm self-employed b/c my employer wishes it so! 

A bit more background - My current UK employment contract expires 31-Oct-09.  The project I'm working on will most likely not last an entire year (through 31-Oct-10).  Therefore, the employer wishes me to become self-employed, and contract my hours to them.  This is so they can cancel my contract "at-will".   I do have a boss, but they're 3000 miles away, and I have minimal contact. 

You have said nothing that indicates any of the "badges of trade".  http://www.hmrc.gov.uk/manuals/bimmanual/BIM20200.htm If your employer fails to withhold PAYE he could be liable.  You would still have rights under English/Scottish law as an employee so I can't imagine what the employer is thinking...

it's a US employee of a UK registered company - i can only imagine that he has no experience in UK employment law.

so, in your opinion, based on the limited information i provided, there is little impact from an employer being able to terminate me whether I'm self-employed/contract vs. regular employee?

Meggles can you answer this that I posted earlier :-

Without naming the employer, what sort of job do you do? And does anyone effectively instruct you what to do each working day?

so, in your opinion, based on the limited information i provided, there is little impact from an employer being able to terminate me whether I'm self-employed/contract vs. regular employee?

I'm not a lawyer, but I'd imagine a contract is a contract, and if your employer wants to get rid of you before the terms of the contract have been met, it wouldn't matter if you're self-employed or an employee.  

In other words, if you're self-employed and you have a contract to do a certain amount of work over a certain period of time for a certain amount of money, I don't see how that is different from being an employee with a similar contract.  

Unless I'm missing something.

I'm confused too!  I'm not sure what they'd be gaining in having me be a month to month or 3/6 month short term contract vs. self-employed.  I *think* they think there's an advantage, but not sure what.

my current job is in-house SAP implementation manager- project management.

Unless I'm missing something.

Sorry, yes, there is a lot you are missing. Employment law gives lots of rights, for example to sickness pay and redundancy money. Such rights would be missing if he is self-employed.

My current UK employment contract expires 31-Oct-09.

So you have a fixed-term contract. When did it start? And if you had an earlier fixed-term contract with the same employer, when did that start?

Please excuse my naivette! 

Curren fixed term contract started 1-Nov-08 thru 31-Oct-09.  Previous to that, I was on a contract that renewed every year.  On 1-Nov-08 my previous employer was disbanded, and rolled into my current one.  (TUPE)

Meggles, I think you should have a read of this webpage.

Quite seriously, I think you need to take legal advice, or at least go along to the CAB, before agreeing to anything.

Sorry, yes, there is a lot you are missing. Employment law gives lots of rights, for example to sickness pay and redundancy money. Such rights would be missing if he is self-employed.

Yes, but she didn't ask a general question about the advantages of staff employment vs. self-employment; she asked about being terminated while under contract.  That's the point I was addressing.

It sounds to me as if you could argue the employer is trying to constructively dismiss you.  I would start looking for a new job rather than argue or get into contentious areas!

It sounds to me as if you could argue the employer is trying to constructively dismiss you.  I would start looking for a new job rather than argue or get into contentious areas!

Agreed!  I am experiencing something similar at the moment (although, not dealing with the self-employed nonsense) and I have been looking for another job.