social Payment Working

[Chris1965]

Does anyone know how much social you pay if you are self employed?

Cheers

[Deso]

It starts at around â,¬270 a month, depending on the particular type of business you run.

[Captain Sensible]

That's about right Deso.  It also depends on your age as well.
It's a very high amount to pay if you're self-employed.

[woodside]

Periodically there is a 'promotion' where you pay a nominal amount of Social for a set period to get a new business started... worth asking at the Social office (or a GOOD Gestoria).  Social payments IMO are way too high here... off-putting to start with and then too high to maintain.  This is why there are so many here working 'black' and paying no taxes 😳.  Crunch time comes when there is an accident (or a job goes wrong) in the workplace... no insurance... 
if the Social payments were lowered in general it would encourage more people to work legally (again IMO) 🙂

[emmi]

In the UK it starts at only £2.80 a week.......BIG difference!

[erik_tonny]

In the UK it starts at only £2.80 a week.......BIG difference!

For health care and pension and social security and unemployment

[Johnrgby2]

In the UK it starts at only £2.80 a week.......BIG difference!

For health care and pension and social security and unemployment

Yes it depends on your category, but when i was still in business in the UK {2015 }, i ran a business with a turnover around £500,000, had 8 employees, and my Ni was £23 a quarter.

[erik_tonny]

In the UK it starts at only £2.80 a week.......BIG difference!

For health care and pension and social security and unemployment

Yes it depends on your category, but when i was still in business in the UK {2015 }, i ran a business with a turnover around £500,000, had 8 employees, and my Ni was £23 a quarter.

What is Ni?

[Johnrgby2]

In the UK it starts at only £2.80 a week.......BIG difference!

For health care and pension and social security and unemployment

Yes it depends on your category, but when i was still in business in the UK {2015 }, i ran a business with a turnover around £500,000, had 8 employees, and my Ni was £23 a quarter.

What is Ni?

National Insurance, in the UK employers are obliged to contribute to their employees insurance, and the employees also contribute, there are different rates, so exact figures are difficult to explain, but it is supposed to cover Health Insurance unemployment and old Age pension, in recent years the UK government has introduced a separate pension scheme which both employer and employee contribute, my understanding and please to not take this as a fact, while employers have to contribute, employees have to register and make a contribution, if they do not the employer does then not have to contribute. Many companies in the UK have been operating a similar system for many years, but this was introduced to provide a safety net for people who were not in any pension scheme. I do not know what the uptake is/was, but there was and I believe still is a lot of radio and TV advertising promoting the scheme.

I have just checked and as of Autumn 2014 only 35% of people employed in the UK had any sort of pension plan

[erik_tonny]

The Netherlands are one of the top countries concerning social security and health care. (we were surprised by the praise on this forum for the spanish health care; to our standards it is almost non existent).
BUT: Quality comes with a price; for what you just mentioned we would pay around â,¬1000 a month. If you want an additional private pension plan you'll pay a lot more.

[Johnrgby2]

The Netherlands are one of the top countries concerning social security and health care. (we were surprised by the praise on this forum for the spanish health care; to our standards it is almost non existent).
BUT: Quality comes with a price; for what you just mentioned we would pay around â,¬1000 a month. If you want an additional private pension plan you'll pay a lot more.

A â,¬1000 is 30% of the average wage in the UK, so very few could afford it
My experience of medical care here both private and state provided has been excellent, though wether i would have anything really serious treated here is another question.

[Windermeregolfer]

I saw this thread earlier today and as treasurer at the Golf Club which employs between 9 and 13 staff at different times of the year I am involved in employee and employer NI (National Insurance) PAYE (Pay As You Earn - Income Tax)

Re NI the following link explains a lot, including self employed contributions which I didn't realise start as LOW as £2.80 a week.  The Self Employed contributions appear to be based on the profit you make as a business and I can't see or know if you are entitled to unemployment benefit or not.

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

John is correct about the new pension scheme being implemented called Auto Enrollment so as to get all employees into an additional pension scheme apart from the State Pension and contributions both employee and employer are on top of the NI contributions.  Employees can op out if they want. Contributions start the lower earning limit and are at minimum  1% employee and 1% employer in year one and after 2 to 3 years raise to 5% employee and 3% employer, employees can op to pay in more if they wish.

The minimum wage for an employee working a 40hour week aged 21 to 24 is now £278 per week of which £155 is free of NI and £211 is free of tax dependent on personal taxation circumstances. For an employee of 25+ the minimum wage from April 1st will be £300 per week. Those are a bit different to the first annual  salary I got of £900 in 1972.

[Johnrgby2]

Hi John
two points, i am not sure Self employed Ni is profit based, over the 10 years I ran my last business, it appeared to increase annually, but I never remember my accountant saying it was profit based, but you could be right in which case i owe somebody a lot of money.

My first wage was when on holiday from University, i was a spare driver for the local Coop, on £338 per year £6:50 a week, it was different, I could be delivering to branches one day, and driving a hearse the next.

[Windermeregolfer]

Hi John - if you follow the link I gave and then scroll down to section 3 (Class 2and Class 4 NI Self Employed) it talks about profit.

As a school boy my dad paid me half a crown (and you will remember what they were!!!) a week for working in the family café / restaurant!!

[Johnrgby2]

Umm, a well if i read more of that I might get a guilt complex. Must though speak to my accountant.

[Johnrgby2]

Hi John - if you follow the link I gave and then scroll down to section 3 (Class 2and Class 4 NI Self Employed) it talks about profit.

As a school boy my dad paid me half a crown (and you will remember what they were!!!) a week for working in the family café / restaurant!!

Bl**dy heavy things, but when I was 18 if you had a pocketful of them { and a strong bekt or very good bracers, you were doing OK 4 half crowns = 6 pints of beer, enough at the time to get me a tad unwell

[spitfire58]

Hi JR2,
If you ran your own company as a paid director then you should have been automatically credited with a stamp without any payment. I run my own business & that is what my accountant has done since day one.
I think the UK government are intent on bankrupting small businesses, my participation to the auto enrolment starts next month, between rises in NMW & pension payments and also I bet you didn't know that now the employer has to pay SSP which now cannot be claimed back from the government as a deduction in the amount of PAYE & NI we return to them. I & a lot of SME's will struggle.
I sent out letters to all our clients last year after the second NMW in one year saying we would have to increase prices, we had swallowed the first rise but could not continue to do that. The answer I got was that "they expected my staff to be paid MORE that the minimum wage but did not see that it should be passed on to them" !!! My answer to that was "get real" !!!
I think there will be a lot of SME's going to the wall in the next few years when & if Brexit starts to bite as well. IMHO

[Johnrgby2]

Hi spitfire
I have just spoken to my accountant who is also a good friend, and was told just that, he also added "I do not remember you ever asking how much Ni you were paying" somebody tell me to shut up if I start commenting on something I obviously know Jack all about

[spitfire58]

Hi spitfire
I have just spoken to my accountant who is also a good friend, and was told just that, he also added "I do not remember you ever asking how much Ni you were paying" somebody tell me to shut up if I start commenting on something I obviously know Jack all about

😉😉😉😂😂😂

[Johnrgby2]

when did reclaiming SSP stop? and what reason if any was given? i agree if that is the way it is going many SME,s will struggle sadly

[Windermeregolfer]

when did reclaiming SSP stop? and what reason if any was given? i agree if that is the way it is going many SME,s will struggle sadly

In the 2 years I have been doing the golf club payroll I haven't had to pay any sick pay thankfully so not been involved with SSP, however I have in the back of my mind it was 2 or 3 years ago when it stopped being reclaimable, see -

https://www.gov.uk/employers-sick-pay/help-with-sick-pay which clearly says you can't reclaim SSP!!!

Moving on I saw this only last week re not paying the NMW -

The ten most bizarre excuses used by bosses found to have underpaid workers have been revealed.

The list, released by HM Revenue & Customs today, details the sometimes strange, sometimes extraordinary reasons employers gave for not paying the Government`s National Minimum Wage (NMW).

The NMW entitles all workers over the age of 25 to a minimum of £7.20 per hour, increasing to £7.50 per hour this April.

And not paying it can result in significant fines â€" and a very unhappy workforce.

The top ten excuses

1.The employee wasn`t a good worker so I didn`t think they deserved to be paid the National Minimum Wage.

2.It`s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth` first.

3.I thought it was ok to pay foreign workers below the National Minimum Wage as they aren`t British and therefore don`t have the right to be paid it.

4.She doesn`t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.

5.I`ve got an agreement with my workers that I won`t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.

6.My accountant and I speak a different language â€" he doesn`t understand me and that`s why he doesn`t pay my workers the correct wages.

7.My workers like to think of themselves as being self-employed and the National Minimum Wage doesn`t apply to people who work for themselves.

8.My workers are often just on standby when there are no customers in the shop; I only pay them for when they`re actually serving someone.

9.My employee is still learning so they aren`t entitled to the National Minimum Wage.

10.The National Minimum Wage doesn`t apply to my business.

Leave that with you.

[spitfire58]

when did reclaiming SSP stop? and what reason if any was given? i agree if that is the way it is going many SME,s will struggle sadly

In the 2 years I have been doing the golf club payroll I haven't had to pay any sick pay thankfully so not been involved with SSP, however I have in the back of my mind it was 2 or 3 years ago when it stopped being reclaimable, see -

https://www.gov.uk/employers-sick-pay/help-with-sick-pay which clearly says you can't reclaim SSP!!!

Moving on I saw this only last week re not paying the NMW -

The ten most bizarre excuses used by bosses found to have underpaid workers have been revealed.

The list, released by HM Revenue & Customs today, details the sometimes strange, sometimes extraordinary reasons employers gave for not paying the Government`s National Minimum Wage (NMW).

The NMW entitles all workers over the age of 25 to a minimum of £7.20 per hour, increasing to £7.50 per hour this April.

And not paying it can result in significant fines â€" and a very unhappy workforce.

The top ten excuses

1.The employee wasn`t a good worker so I didn`t think they deserved to be paid the National Minimum Wage.

2.It`s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth` first.

3.I thought it was ok to pay foreign workers below the National Minimum Wage as they aren`t British and therefore don`t have the right to be paid it.

4.She doesn`t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.

5.I`ve got an agreement with my workers that I won`t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.

6.My accountant and I speak a different language â€" he doesn`t understand me and that`s why he doesn`t pay my workers the correct wages.

7.My workers like to think of themselves as being self-employed and the National Minimum Wage doesn`t apply to people who work for themselves.

8.My workers are often just on standby when there are no customers in the shop; I only pay them for when they`re actually serving someone.

9.My employee is still learning so they aren`t entitled to the National Minimum Wage.

10.The National Minimum Wage doesn`t apply to my business.

Leave that with you.

You are correct Windermere, SSP stopped being reclaimable in 2014, however I rarely have anyone Long term sick so didn't cross it till before Christmas.
All those reasons are laughable, I pay everyone the same rate, all on NMW, except the supervisors of course, but people are going to struggle as this bites more & more

JR2 - No reason given that I am aware of, just slipped in the back door !! (as per usual for the government when they are scamming you !!) 😡😡😡

[appy ammer]

I pay 315,48 a month, this was at a reduced rate at first. I did also receive a 5,000 euro grant which I had to apply for and received after a year, not bad for a bloke who doesn't speaka el lingo