<prompt> Human: I run a small IT shop in the UK and my boss and I agreed that I could switch to a commission system if I want to. I have been told I would need to register as self-employed and lots of other things that are confusing for a 19 year old. Does anyone know how all of this works and can eli5? I have been fairly vague so if you can help but need more information i can try to find out for you. ThanksEdit: Thank you for all of the replies, they have been very helpful in making a decision.  <response>: In the US, if you are self employed, you pay a lot more taxes. It may seem like a good deal, but youve got to be very careful with your projections and calculations. It may seem like you are going to make a bit more money, but if your employer is suggesting it, Id wager you wont.Also take into account the value of a steady, reliable income. Having lived on straight commission, I can tell you that its uncomfortable when suddenly theres a bad luck streak and youve got nothing coming in for a month. Also, take into account how much of your income relies on someone else doing their job. Someone commented that commissions give an incentive to work harder. Well, how much of your sale depends on just the selling? What if a supplier flakes out, or distribution fails, or a customers check bounces, etc etc? You are insulated from these vagaries right now ... what happens when things beyond your control turn off your income stream? Theres a reason employers make a larger share of the profit .. they are taking risks employees dont have. If he passes those risks to you, then you need proper compensation.After carefully calculating your additional expenses due to self employment, your new commission structure should give you a healthy raise, like at least 30 more net profit. What I would do for 300 a week hourly I wouldnt do for less than 600 on commission - and thats a rough guess. 