Consultancy advice re tax etc.

LizW

I work inaccountancy dealing with restructuring and was told at the end of June that myposition was being made redundant as my firm didn't want to source the specifictype of work I do anymore (this was part of a wider redundancy process and noother jobs were available). Anyway I have entered into a compromise agreementand payoff package and was due to finish at the end of this month.

However, myfirm has now asked me to officially finish as agreed but then enter a two dayconsultancy agreement for a period up to approximately Christmas - or sooner ifI get a new job - at a fixed daily rate. I haven't yet found another job so amprepared to do this as I will still receive my payoff at the end of the monthas well.

The HR teamwill send me a draft consultancy agreement but I have been asked whether I am goingto workas an individual or a corporate.

As this is ashort term thing for approx 3 months I don't want to go to all the hassle ofsetting up a limited company and all that goes with it but have no idea whatthe options are and the pros and cons of each - I presume tax is paid via selfassessment but don't know where to start to be honest.

paddyrg

That's pretty much it to be honest, just let HMRC know when you start and finish being a sole trader, how much you earn via self assessment, they'll tell you what you owe them.