Second job: contract or freelancer?

TinaCity

Hi!
I am looking for some advice on how to set up a second contract of employment.

I am currently employed full-time. Before joining, I checked with my employer (and obtained in writing) that I would be able to work on film productions on the side.

The production company I am now about to start working with are asking me how they should hire me.

It's the first time I find myself in this situation and I am struggling to understand what my options are. Can they employ me directly (fixed-term contract) or do they have to take me on as a sole trader/limited company? 

I would prefer the fixed-term contract, as it would avoid the pain of self-assessment, but I am confused about the legal side of things.

Any help would be much appreciated! Thank you

Elliott.T123

There is no legal reason why you cant be employed by two difference companies at the same time. There are thousands, probably even hundreds of thousands of people across the country that work multiple jobs. All you need to be careful of is making sure the contracts don't clash so you will never be expected to work the same hours or similar. Having not done it myself for many years I don't remember how the tax side works exactly but from memory one is treated as your "main" job and receives a standard tax code while the second job is taxed at 20% with no personal allowance, you just need to make sure the code is right as early as possible or you will likely be hit with a tax bill at the end of the year.

But in short, no reason why they cant employ you on an FTC.

LittleVoice

Makes life much simpler to be an employee in both jobs.

When you work with the second employer they should ask you to complete a New Starter form (which is an HMRC form, formerly a P46 IIRC).  On that you will say that you have another job.  So this second employer will apply the BR (Basic Rate) code to your pay, which means you pay 20% income tax on everything you earn with them. 

You are likely to have to pay employees NI too - but that depends on the frequency you are paid and how much.  Whereas you don't get any tax-free allowance, you do benefit from the standard exemptions for NI.

TinaCity

Thank you very much to both of you! Very clear explanation. They just offered exactly what you said (BR with no personal allowance) and I think I will accept the offer.