Being paid a retainer

Maltie

Hi
Wondered if anyone can help (my first post!).

I am starting a new job in a couple of weeks, but the company I'm currently with have offered to pay me a retainer of £500 per annum so they can use my knowledge, skills, etc - as they do not plan to replace me when I leave.

Can anyone help me as to how I declare this to the tax people - would I have to become self-employed? Is it just one big headache to organise?

Any help gratefully appreciated! Thank you.

SplanK

i would speak to your new boss's first - they might not like the idea of you been on a retainer - esp if its a similar type job (leaking info blah blah....)

IMHO - £500PA isnt worth the potential hastle this could cause...
how do they plan to use your knowlage and skills? is there a set limit, times they will call you (IE not in your new jobs work hours.......)

ali1972

As I recall there's a section on the tax return form for bits of income like this - i.e. smallish amounts that don't come under other headings. I've used this section for survey payments in the past.

Itsgottabedone

£500 = good if they don't call on you at all, but I agree with SplanK it's not worth it. Could you agree an hourly rate with them?

Maltie

Thanks everybody for your input - it sure had given me food for thought! To be honest not sure if I want the pain of filling in tax forms, informing my new employers, being 'available' to offer advice etc all for £500. Thanks again - and I'm definitely thinking about it.