SB: Freelance work while employed

melou

Hi,

I am a consultant working on 3 monthly rolling contracts paid PAYE through a consultancy firm. I maintained good relations with a former employer who also provides me with occasional work every 6-8 weeks which varies between £300-500 a time. I have been approached by another company with the potential for more ad hoc work (all of which is doable as my main job is p/t). However, I am not sure how to go about receiving the money for this work.

Do I have to set myself up as a company to pay tax on it? If so what is the easiest/cheapest way of doing this?

Melou

richt71

If you're not talking about thousands then easiest is to be a sole trader - open a business account in your name. You'll get taxed on the overall income from both parties.
If you're talking a fair bit of money each month than a company might be better. It's usually only better as you can keep profits in the company and take lower taxed dividends after paying yourself as an employee.
I'd recommend you get a cheap or free consultation with an accountant to confirm the above though.

martindow

And you do need to inform the Inland Revenue and ask them what you need to do. This sounds very straightforward. I would take the revenue's advice on what is needed and not bother with an accountant (unless they are a friend offering free advice).