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Self Employment route - what is deemed as self employed

Self Employment route - what is deemed as self employed

Old Jul 1st 2012, 1:42 pm
  #1  
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Default Self Employment route - what is deemed as self employed

I am currently looking into the self employment route - I work as a freelance Graphic designer / digital designer so would come under this category.

This route in states that a self-employed person, means a minimum of two years of experience, during the period beginning five years before the date of application for a permanent resident visa and ending on the day a decision is made on the application.

From the period of June 2011 to June 2012 I have completed one year of self employment using an umbrella company so I pay all my tax as I go along and do not have to take a UK self assessment and pay a lump sum at the end of the year.

This above year, I presume, will count even though I used an umbrella company or would you have to show that you were registered as self employed? You do not need to register as self employed if you use an umbrella company, but technically I am a freelancer / contracting graphic designer.

Prior to this I was employed for a year so I know that won't count, but before then I was self employed for 2 years but instead of using an umbrella company I set up a limited business for all my tax needs, but I was still a contracting / freelancing designer - would this count? Or would it not be seen as being self employed as it was a limited business, so technically I employed myself?

Just trying to work out if I have the right amount of time and meet the requirements needed.

Many thanks

Last edited by jobop; Jul 1st 2012 at 1:44 pm.
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Old Jul 1st 2012, 4:33 pm
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Default Re: Self Employment route - what is deemed as self employed

Originally Posted by jobop
I am currently looking into the self employment route - I work as a freelance Graphic designer / digital designer so would come under this category.

This route in states that a self-employed person, means a minimum of two years of experience, during the period beginning five years before the date of application for a permanent resident visa and ending on the day a decision is made on the application.

From the period of June 2011 to June 2012 I have completed one year of self employment using an umbrella company so I pay all my tax as I go along and do not have to take a UK self assessment and pay a lump sum at the end of the year.

This above year, I presume, will count even though I used an umbrella company or would you have to show that you were registered as self employed? You do not need to register as self employed if you use an umbrella company, but technically I am a freelancer / contracting graphic designer.

Prior to this I was employed for a year so I know that won't count, but before then I was self employed for 2 years but instead of using an umbrella company I set up a limited business for all my tax needs, but I was still a contracting / freelancing designer - would this count? Or would it not be seen as being self employed as it was a limited business, so technically I employed myself?

Just trying to work out if I have the right amount of time and meet the requirements needed.

Many thanks
As the agency is deducting tax through PAYE (the umbrella company), it may well be hard to demonstrate self employment (unless you own the umbrella company). The agency finds the work, deducts the taxes, it appears more like an employer/employee relationship. If you issue a contract to the employer and are paid for that contract it is easier to demonstrate a contractor relationship, however under PAYE it would seem unlikely.I doubt this would count as self employed unless as stated, you own the umbrella company. The acid test is more the relationship between the employer and employee than a self employed registration.

To prove self employment where tax is deducted at source, where a corporation is concerned would be easy if you owned the corporation as a shareholder as well as employee and this is provable by producing accounts and a letter from an accountant. Your period of owning your own corporation is more likely to count.

Last edited by Aviator; Jul 1st 2012 at 4:35 pm.
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Old Jul 1st 2012, 7:46 pm
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Default Re: Self Employment route - what is deemed as self employed

Thanks for your reply, I was thinking along the same lines as you, there does not seem to be any instructions as to what would be right for sure?

I think the best route in for me is if I could gain employment and go over on a twp?
I'm also a front end developer as well as a digital designer so you never know until you try?

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Old Jul 1st 2012, 9:48 pm
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Default Re: Self Employment route - what is deemed as self employed

Originally Posted by jobop
Thanks for your reply, I was thinking along the same lines as you, there does not seem to be any instructions as to what would be right for sure?
Not sure what instructions you are looking for? You would either be employed or self employed, which is determined by the employer/employee relationship and business structure.
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Old Jul 1st 2012, 10:36 pm
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Default Re: Self Employment route - what is deemed as self employed

In the UK I am still seen as self employed even though I use an umbrella company, I find the work not the agency, I just use the umbrella company as my payroll/limited company so I don't need to set my own up. They do not sort out the contracts I inform them of my contract and they collect the money on my behalf and then pay me acting as my limited business.

From what I have been finding they do not use umbrella companies in Canada so was wondering if they would view it the same way?

As for instructions was just after a little more specific info, but as the instructions would not just be for us in the UK and with there being a few ways in which to be seen as self employed in the UK I wondered how Canada would view the info that I may put in an application if I applied?

Many thanks for your reply, I have a lot to think about and I may well qualify with just my limited business accounts without even the umbrella company ones? Will see how it pans out?
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Old Jul 2nd 2012, 1:24 am
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Default Re: Self Employment route - what is deemed as self employed

Originally Posted by jobop
In the UK I am still seen as self employed even though I use an umbrella company, I find the work not the agency, I just use the umbrella company as my payroll/limited company so I don't need to set my own up. They do not sort out the contracts I inform them of my contract and they collect the money on my behalf and then pay me acting as my limited business.

From what I have been finding they do not use umbrella companies in Canada so was wondering if they would view it the same way?

As for instructions was just after a little more specific info, but as the instructions would not just be for us in the UK and with there being a few ways in which to be seen as self employed in the UK I wondered how Canada would view the info that I may put in an application if I applied?

Many thanks for your reply, I have a lot to think about and I may well qualify with just my limited business accounts without even the umbrella company ones? Will see how it pans out?
As the umbrellas company deduct source tax, I think it would be very hard to demonstrate that you we self employed using that route.
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