Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • curlyhairsuzy
    • By curlyhairsuzy 18th Mar 17, 9:52 PM
    • 21Posts
    • 5Thanks
    curlyhairsuzy
    Ltd/self employed best tax options?
    • #1
    • 18th Mar 17, 9:52 PM
    Ltd/self employed best tax options? 18th Mar 17 at 9:52 PM
    Hi
    Currently employed PAYE earning approx £32k per year.
    I have the opportunity to do some agency/locum work. Potentially could earn up to £50k per year in addition to my PAYE salary.

    Should I initially start as self employed then incorporate? What is the process for this? Am I better off setting up a limited company to start with?

    My income/expenses will be pretty straight forward, won't have to buy stuff for the job just suppose mileage/clothes etc as expenses.

    It's all very new to me this. I do understand if I take the initial £11k as income self employed then I would only be taxed 20%. What about NI contributions? This is where I get confused.

    At that point would a ltd company make more sense?

    If anyone can explain this in laymans terms it would be appreciated. Thanks.
Page 1
    • trailingspouse
    • By trailingspouse 18th Mar 17, 10:12 PM
    • 1,971 Posts
    • 2,723 Thanks
    trailingspouse
    • #2
    • 18th Mar 17, 10:12 PM
    • #2
    • 18th Mar 17, 10:12 PM
    There are so many variables, your best bet would be to speak to an accountant. They will normally give you 30 minutes' advice free of charge. They'll be able to tell you which of these options is best for you, and what paperwork you need to complete.
    • BaileyMoselle
    • By BaileyMoselle 20th Mar 17, 7:15 PM
    • 77 Posts
    • 18 Thanks
    BaileyMoselle
    • #3
    • 20th Mar 17, 7:15 PM
    • #3
    • 20th Mar 17, 7:15 PM
    Another option is to use an umbrella company. You will pay more tax but it is hassle free and very easy to keep your taxation compliant.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

196Posts Today

2,287Users online

Martin's Twitter