Would he need to set up ltd company if employed too?

ManicMum

Hello

My hubby is employed but has been offered some contracting work for a few days. He could take annual leave to do this. However would he need to set up limited company? He will be doing a self assessment anyway for 10/11. Could he inform HMRC of self-employed status in addition to employed and put it in SA as though sole trader?

thanks

CLAPTON

there is no problem in being employed and paid under the PAYE system and also being a sole trader
there is no need to set up a ltd company

tyllwyd

I thought that one-off earnings could be declared as casual earnings on a self-assessment tax return? It might not be necessary to register as self-employed. Worth checking before you rush to register!

Mikeyorks

Seems a hassle to register a self employed if this is a one-off for a few days. Worth considering - and particularly as he already files an SA Return - if HMRC will simply accept it as casual extra income :-

http://www.hmrc.gov.uk/incometax/non-paye-income.htm

........ that way he can choose to pay it or have it coded out?

ManicMum

Thanks for that. Wasn't sure.

Are IR35 regs still in force? If you get a contract through an agency and you are workign at the same place for 6 months or so, would you be required then to set up as limited or could you still be sole trader?

I have never managed to get to the bottom of whether sole trader or limited company is more profitable. Sole trader obviously simpler.

He wasn't able to do the work anyway in the end because he as last contracted there is a new course you need to have done but it is worth finding all this out for the future.

thx