Self-employed

Are you already trading or considering starting a business as a sole trader? Neon Numbers are here to help you, from accountancy services to tax advice for independent businesses and self-employed professionals.

Neon Numbers will ensure that your books and accounts are up to date and are accurate. 

Are you a self-employed freelancer, contractor, small business or start-up on the lookout for an accountancy company who can assist with your finances?

At Neon Numbers we have a dedicated team who can offer you unlimited advice and support you throughout. We will provide you with online accounting software so you can keep on top of your self-employed bookkeeping.

IR35 is the HMRC buzzword of 2020 and 2021.  This refers to those that are in substance employed, but are being paid and taxed as a subcontractor.  This leads to a lower rate of NICs and the allowance of significant tax-deductible expenses. 

Tax and accountancy follow a ‘substance over form’ approach and therefore many contractors are required to change the employment status of many of their workers.  The result of a recent court case with Uber relating to IR35 is that they are now legally required to pay their drivers as employees; this has set a precedent and you can read a news article on it below:

Uber court case article

The main drawback is that employees and employers tend to pay more tax and NIC; expenses cannot be offset against income (which is only actually a drawback if the additional tax is higher than your saved accountancy fee) and NICs are not applicable for contractors (however all small companies have a £4000 annual allowance for this).  

Self employed handy man working in workshop

If HMRC deem that you are already working as an employee, the way you are paid and the way you pay tax are the only things to really change – your ability to decide who you work for day in and day out is one of the determining factors of your employment status and in substance tends to not change.  You can work out whether you should be paid as an employee (or should set up a PAYE scheme for your subcontractors) at the below link:

Check your employment status for tax here