Second Job TAX ?

Jaspr

Hello, I've got a month off work in February (enforced).
Could anyone advise the best way of getting PAID for a temporary job ? Someone has suggested using an Umbrella company, to get the most "cash" out of it. I will obvously be employed and paid still by my current company as well and don't want to be stung by Tax.

Any suggestions gratefuly received.

Jase

fengirl_2

You cannot use an umbrella company if the contract is between you and the employer and there is no point in starting a company with all the attendant costs for one month.
You will pay tax at your highest rate for any addtitional work you do, but the first £110 of a month's pay will be free of NIC. What is the point in paying company formation fees and acountants fees in order to avoid tax - the end result will be the same and cause you loads of hassle. You will still have to pay tax at your highest rate in order to get the money out of the company.

Jaspr

Hi thanks for the reply I would probably work through an agency like Rullion or computer people would that make a difference ?

wileycat

You'll just lose the tax by PAYE instead of self declaring it. Its the same rate of tax.