Consultancy work

daku

Hey guys,

I've just embarked on a new career move into self employment doing consultancy work

Would appreciate some advice on invoicing, tax, allowances and anything else in between. I don't have a registered company.

Current company I haved signed with provides me with an Annual salary just under 35k.

Also what qualify's for a business car lease?

Thanks in advance!

Daku

Owain_Moneysaver

If a company is paying you an annual salary then you're almost certainly an employee, not self-employed.

gettingready

As above - you are not self employed, you are an employee.
On a salary you will not be invoicing anyone or have any tax allowances.
I think you are a bit confused?

daku

Sorry I meant annual fee, to be clear I am not on the PAYE system.

Owain_Moneysaver

Have you registered with HMRC as self-employed?

daku

In the process of doing so

gettingready

daku wrote: »

Sorry I meant annual fee, to be clear I am not on the PAYE system.

And what on earth is that?

Consultants work on either a daily rate or per competed project rate.

How is an "annual fee" different to a salary?

Are you self employed or working via own Ltd company or via an Umbrella?


Just wondering, are you in UK?

sangie595

gettingready wrote: »

And what on earth is that?

Consultants work on either a daily rate or per competed project rate.

How is an "annual fee" different to a salary?

Are you self employed or working via own Ltd company or via an Umbrella?


Just wondering, are you in UK?

I've got to admit, this would be my question too. A company cannot simply decide that toy are self employed, and neither can you. A consultant rarely works for a single client, not full time anyway. So unless you are really, really, well paid, then this probably isn't self employment- which can land both you and the employer in trouble.

After I retired last year my employer kept me on in a consultancy position. I invoice at an hourly rate. I pick and choose my hours of work, and my locations. I don't work full time for them any more, and the work I do is "project based" in that I am asked to do certain pieces of work, and if I don't want to, I can refuse. For each piece of work I will quote them an estimate of costs - basically a best guess as to how many hours they are committing to - and our contract has a clause that allows for a margin of error, so if it takes less time I change for fewer hours with a minimum "cap", and if it takes longer I charge for more hours with a maximum "cap". That way we both have a degree of certainty about costs. I know what I will make in a ball park figure, and they know what it will cost as a ball park figure.

Nothing about what you are describing here sounds above board to me.

PasturesNew

You are a Consultant if you can phone them up and say "Monday's meeting I was due to attend at - I now can't make that as I'm needed on site at another client's emergency - and I've got a presentation to make in the afternoon for a potential new client - can you do Tuesday, or do you want to get back to me with a rearranged time/date?" .... and you're not sacked.

gettingready

Daku - I have a horrible feeling someone is having you on.

Can you give us more details? Based alone on what you wrote so far, this is something I would be very wary of to be honest.

sangie595

PasturesNew wrote: »

You are a Consultant if you can phone them up and say "Monday's meeting I was due to attend at - I now can't make that as I'm needed on site at another client's emergency - and I've got a presentation to make in the afternoon for a potential new client - can you do Tuesday, or do you want to get back to me with a rearranged time/date?" .... and you're not sacked.

I love that definition! I must remember it....