HSMP Query

[RAJ2007]

I have got another query about HSMP.

I know someone who is self-employed doing accounts job for various firms. He has asked me to do some accounts job for his clients. He will get paid from the client directly and He will then pay me (less his commision) for that job in cheque (like a sub-contract). the job will be for few months. Now, my question is that if a self-employed person pays me (gross) for doing job for him and I want to show that income for HSMP, what sort of documents do I need to collect?

I thought I will keep the records of cheque going into my account and I will give him invoices for the job done. I will also ask a ACCA (certified accountant) to write for me explaining the income earned. Will that be sufficient? Do I need to get any other information form that self-employed person? Do I need to collect any other information from Inland Revenue? Please advice.

[1971]

Hi,

Are you self employed? If not you have to either register first with HMRC for company taxes as either a sole trader/partnership with any business. You can also register as a limited company with companies house if you wish to. But you must register as a self employment with HMRC for taxe and NI contribution purposes.If you dont, HO will not accept whatever invoices/bank statements as evidence.

After registration,HMRC will notify you of your weekly/monthly NI Contributions and that you can pay by Direct Debit or pay throughly monthly NICO Account charging slip at the post office or bank. It is left for you to decided which options to pay with as this will be part of the documents sent to you by HMRC after registration.

It is very important you register with HMRC before trading.But if you haven't you can start that now.Issue invoices on every job done and keep duplicate copies of all invoices on jobs done. Also, keep all expenses record incurred in the cause of your carrying out these jobs for taxes reconciliation purposes.

please, read Page 27 and 29 of this link for Ho requirements for self-employed.

http://www.bia.homeoffice.gov.uk/6353/1 ... idance.pdf

I hope this helps you on your question.

I wish you luck.

Regards,
1971

[RAJ2007]

I am on dependent visa (student dependent). Is it of for me to be self-employed?