self employed?

jm2926

Recieved a phone call today asking me to go fix something for a friends company as they had an emergency. They intend to pay me for this, but I'm not sure how. I guess they'll need a receipt and to put it through their books etc.

I'm not sure how to go about this. Can I bill them as an individual? Should I use an umbrella company to set myself up? I could get a friend to bill them through their company and they pay me?

There could be more work from them. I am currently in employment, but not adverse to earning a bit more privately, so that would be fine. I'm not trying to do anything illegal or underhand here, I'm just not sure what the implications are.

VfM4meplse

I wouldn't bother setting up a limited company for just one job, declare it through self-employment but beware if you haven't completed this before as this means you will need declare all your income. I think there are lot of people out there escaping an additional 20% on income from investments just because they are on PAYE and have never completed a SA.

If there is substantial work coming your way outside of PAYE it may be better to set up a limited company and pay yourself a small salary, taking a larger cut as dividends which are taxed lower. This is more hassle paperwork wise, and will incur additional costs in professional fees (you will need a chartered accountant to certify the annual accounts and they don't come cheap) so assess your potential and ongoing earnings by this route before committing to this.