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Define: "SELF EMPLOYED"??

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jmig
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Define: "SELF EMPLOYED"??

Post by jmig » Fri Mar 11, 2011 7:40 pm

Does anyone know the precise definition of self employed that the UKBA uses?
And thus, when one should be registered as Self Employed?

Would it be the same criteria as that of the HM Revenue & Customs?

I've called UKBA multiple times, nobody could help. I've emailed as well, but received no reply...

jmig
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Post by jmig » Fri Mar 11, 2011 7:43 pm

Seems to be a fuzzy term.

Per directgov :
There's no legal definition of employment or self-employment, so if there's doubt about someone's employment status the decision is made by referring to previous judgments - known as 'case law'.
And HMRC
A worker's employment status, that is whether they are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.

arsenal49
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Post by arsenal49 » Fri Mar 11, 2011 10:00 pm

and my understanding is...

you can earn money(legally) in two ways

work for some one else!

or work for yourself! i.e. self employed

when i say legally, i mean that you pay taxes on the money you have earned.

and from immigration point of view, u can only use LEGAL earning to prove your salary!

dont expect UKBA to have clever little all-encompassing definition for self-employment!

jmig
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Post by jmig » Sat Mar 12, 2011 10:38 am

I completely agree!!

While the purpose of the rules is clearly "to show that tax was paid on your earnings" - it does not explicitly state that. Instead it talks about registering as self employed...

However, it is possible to pay tax on extra income without registering as self employed by HM Rev & Cust. Making the earnings "legal", as you put it.
But it is unclear whether they will be counted.

Hence, my query of the UKBA's criteria for what they consider self-employed...

Following the 'legal' logic, one would assume that good enough for HMRC, good enough for UKBA. But one can never tell...

arsenal49
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Post by arsenal49 » Sat Mar 12, 2011 2:26 pm

If you make all or part of your living by working for yourself – not through a salary or commission from an employer – then you’re considered self-employed.

If you are self-employed your tax and national insurance contributions are not paid at the time you receive payment, and you are therefore bound by law to declare your earnings to HMRC.
found this explanation on

Code: Select all

http://www.startups.co.uk/what-counts-as-self-employed_1.html
good explanation!

arsenal49
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Joined: Sun Jan 24, 2010 12:04 am

Post by arsenal49 » Sat Mar 12, 2011 2:44 pm

There's no legal definition of employment or self-employment, so if there's a doubt about someone's status the decision is made by referring to previous judgments - known as 'case law'. A piece of case law is a written decision of a real case from the Court and the principles of that judgment act as a guideline for future cases. In summary it is a question of who is in charge, the relationship you have with your customers, and how you are paid.
found on

Code: Select all

http://www.foreignersinuk.co.uk/guides-are_you_employed_or_self-employed_776.html

jmig
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Post by jmig » Sat Mar 12, 2011 3:22 pm

Good links, thanks for that.
I suppose the .gov ones hold more weight.

HMRC advised me not to register as self employed (for a small contract), and taxed the income in another way.
They're going to write me a letter to that effect.
I wonder what UKBA will think...

Will certainly be an interesting case!

(if rejected, one would think it would pass judicial review, given that the body that registers for self employed said it shouldn't be done, and that clearly the purpose of the rules are to ensure that all earnings were properly taxed!)

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