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Advice please - best way forward
MrsBrush
Posts: 181 Forumite
in Cutting tax
I am in my 50's with an older husband, and I don't really want to work full time for one employer until I am 67! So my plan is to diversify a bit now towards a portfolio of work to give me more flexibility in the future.
I am currently in a full time (PAYE) employment and have a sessional (PAYE) teaching role at a University, which is usually only effective about 3 months a year. Combined this is equivalent to roughly around £48k per annum, and the tax codes sort everything out with HMRC. My employer is aware, and is happy with the arrangements because it helps with CPD etc. Time-wise, this is not an issue as most of the work is evening based.
I have just been offered some regular part time consultancy work as well, which I can fit around everything else as it is not particularly challenging for me to do. This is attractive because it could have a longer term potential. However, I do need to invoice for this, as the company are small and employ several consultants rather than as direct employees. I don't believe that I need to set up a limited company, as initially it will be a few hours here and there, and this might build up to a maximum value of around £10-15k a year given time. If things change, this may be a future solution, but I am not ready for that commitment yet.
However, I know there are several tax implications for a self-employed side gig, such as hitting the 40% tax bracket, declaring the income to HMRC and going back to completing self assessment forms etc etc. Trouble is, having read a plethora of advice and guidance about IR35 rules, umbrella companies, direct invoicing and declaring myself to be self-employed, I am now a bit confused as to the best way forward. How do I set this all up?
many thanks
S
I am currently in a full time (PAYE) employment and have a sessional (PAYE) teaching role at a University, which is usually only effective about 3 months a year. Combined this is equivalent to roughly around £48k per annum, and the tax codes sort everything out with HMRC. My employer is aware, and is happy with the arrangements because it helps with CPD etc. Time-wise, this is not an issue as most of the work is evening based.
I have just been offered some regular part time consultancy work as well, which I can fit around everything else as it is not particularly challenging for me to do. This is attractive because it could have a longer term potential. However, I do need to invoice for this, as the company are small and employ several consultants rather than as direct employees. I don't believe that I need to set up a limited company, as initially it will be a few hours here and there, and this might build up to a maximum value of around £10-15k a year given time. If things change, this may be a future solution, but I am not ready for that commitment yet.
However, I know there are several tax implications for a self-employed side gig, such as hitting the 40% tax bracket, declaring the income to HMRC and going back to completing self assessment forms etc etc. Trouble is, having read a plethora of advice and guidance about IR35 rules, umbrella companies, direct invoicing and declaring myself to be self-employed, I am now a bit confused as to the best way forward. How do I set this all up?
many thanks
S
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