Becoming Self Employed Q: I have always worked as an employee, but now want to take steps to set up my own business and work for myself. Can you explain how this differs from being employed? A: When you are employed, your employer deducts tax and National Insurance (NI) from your gross pay and the balance is paid to you. The amounts deducted are paid to HM Revenue and Customs (HMRC) through your employer's Pay As You Earn Scheme. Assuming you have no other sources of income and are not a higher rate taxpayer, you are unlikely to have any further [...]