Doing one-off work for employer, how?

Whats_my_age_again

hi,
my employer has proposed that they contract me to create a new webiste for them as a way of increasing my income. They would prefer this to paying me through PAYE to do it to save on Employer's NI and also possibly that they may get a grant doing it this way.

But how do I declare this? - it should be a one-off.

I may do a little bit of extra work if opportunity if the need arises, what would be the implications? Would I have to pay a lot in NI while not actually doing any self employed work?

As a side note what is a reasonable amount to charge for creating a website?

Savvy_Sue

If you are not earning much through self-employment, you can apply for small earnings exemption, and it sounds as if that would be you.

But technically I think you'd need to register as self-employed (there's a fine if you don't do so within 6 months). If it IS just a one-off you can possibly deal with it through a tax return - I'd phone your local tax office and ask them as they are usually very helpful.

fguk

excellent advice from Sue, just a small correction, its three months to register for self employment (before you may get a fine of £100).

Whats_my_age_again

thanks for advice so far. Would I run into trouble if I turned this one-off contract into a IT service contract charging a set amount each month? Would the HMRC not like it?

Initially I may only be doing the work for my employer (but not as an employee) but may do an odd job here and there in addition if I can drum up the business.

fguk

If you are registered as Self Employed, but doing work only for one client, then they may think that you should be earning money as an employee (IR35 regulations). So, get yourself some other clients, and that is one of the steps to making sure the revenue doesnt mind what you do (so long as you pay your taxes!).