Should i set up as Sole Trader to maximise tax benefits ?

curtlyb

Hi, wonder if anyone could offer any advice on my potential situation.

I am currently employed and hopefully will stay that way but i have been offered some paid consultancy abroad (zero tax country) which will take me away for a week every six months.

Potential income £6000 a year

Which is the cheapest & most efficient way to set myself up to accept payment and get the maximum amount of revenue after tax into my pocket ????

My current thoughts are starting as a sole trader, offsetting a small amount of money for petrol whilst doing background work in the UK and a contribution to heating and lighting for my home (as an office), maybe even a computer to offset the tax liability ?!?!??

Would i have to pay extra NI for the whole year or just the time i am working ??

Also, whilst it won't effect my current employers, i'd like to keep the business totally separate, is this still possible as a sole trader or would HMRC have to notify my employers ???

Any help and advice people could offer would be gratefully appreciated

fengirl_2

Yes, setting up as a sole trader is the simplest way to deal with this income. HMRC will never inform your employer about your private tax affairs.

John_Pierpoint

You may be able to "reduce" your earnings below the class 2 NI limit.

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073790854&type=RESOURCES