Contracting for existing employer

busterlfbrown

I have been doing some additional work for my current employer which has been added on to my PAYE. They are totally separate areas of the business (finance as the full time work and filming/editing as additional work) after our former contractor became too busy. All the film work is all done outside of my contracted hours.
The filming part is now expanding and requires new equipment which the company will not purchase for IT security issues.
After some discussion, we have decided the best way forward is for me to go self-employed for the filming work and purchase any equipment needed, as that was the position of our former contractor.
A colleague has flagged this, saying it may be questionable from HMRC if I am employed by the same company I am have a self-employed contract for. Without spending thousands on a specialist, I cannot find a direct answer myself. Does anyone have any insight?
Thanks in advance

Brynsam

I think you might struggle to persuade HMRC to swallow the self-employed piece, not least because of the history of doing this work on a PAYE basis. There's an easy way round it. Set up a limited company (cheap and easy to do on line and running costs are negligible) and provide services via that.

Marcon

Link: https://www.gov.uk/limited-company-formation/register-your-company

Ozzuk

Don't forget to build in your new costs to the fee, holiday, NI, time for tax returns (you'll have used all your allowance); any admin etc

Be careful with the contract - what if you buy all this kit and the company decides to change suppliers? What happens if you are sick/take holiday?

Could you look at making this a full time business? I.e. drop the paye, starting doing this for other companies? Could be good opportunity.