IR35 questions regarding occasional work

oldfoodiegal

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

TheSpectator

What do you mean 'register' as a sole trader? What criteria did you put when registering with HMRC for Self Assessment.

Grumpy_chap

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

You have not mentioned in your text the query around IR35 indicated in your title.

If you are operating as Sole-Trader, IR35 is not applicable.

IR35 would only apply if you operated through your own Limited Company.  From the limited information shared in your post, it would seem that a status assessment would determine outside IR35.

Marcon

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

Your thread has the title 'IR35 questions' but it doesn't sound as if you are working via an intermediary (such as your own limited company). IR35 doesn't apply to self employed people working as sole traders.

Yes, you should be registered. See https://www.gov.uk/become-sole-trader

DullGreyGuy

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

Registering to do a self assessment on the basis of being self employed is registering as a sole trader. 

You've over £1,000 revenue so do have to register but at £4k what taxes you'll have to pay depends on what other monies coming in you have as most benefits and all pensions, bank interest etc has to be declared too and I assume you arent claiming to have not another penny in the world other than the £4k being paid. 

There is no further registration required unless you are hitting the VAT level of sales (or want to voluntarily register). Other things are optional, though most consultants would be buying Professional Indemnity Insurance, especially as a sole trader

oldfoodiegal

DullGreyGuy said:

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

Registering to do a self assessment on the basis of being self employed is registering as a sole trader. 

You've over £1,000 revenue so do have to register but at £4k what taxes you'll have to pay depends on what other monies coming in you have as most benefits and all pensions, bank interest etc has to be declared too and I assume you arent claiming to have not another penny in the world other than the £4k being paid. 

There is no further registration required unless you are hitting the VAT level of sales (or want to voluntarily register). Other things are optional, though most consultants would be buying Professional Indemnity Insurance, especially as a sole trader

Thanks. I've completed the SA with all the necessary information regarding interest etc.... by earnings I meant I dont have another job. Sorry if that was unclear.  Doubt I hit any VAT levels etc but I'll look into that too.

oldfoodiegal

Marcon said:

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

Your thread has the title 'IR35 questions' but it doesn't sound as if you are working via an intermediary (such as your own limited company). IR35 doesn't apply to self employed people working as sole traders.

Yes, you should be registered. See https://www.gov.uk/become-sole-trader

Marcon said:

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

Your thread has the title 'IR35 questions' but it doesn't sound as if you are working via an intermediary (such as your own limited company). IR35 doesn't apply to self employed people working as sole traders.

Yes, you should be registered. See https://www.gov.uk/become-sole-trader

Yes thats right- it's just me, no intermediary. I'll look into registering as a ST.  Thank you.

oldfoodiegal

Grumpy_chap said:

oldfoodiegal said:

Good Morning. I've been working on a consultancy basis for a small company over the last few months. Earnings total around £4000 so I've registered to complete SA. I understand there is no tax or NI to pay as the earnings are low but should I be registered as Sole Trader? I'm not working with any other companies and have no other earnings. Work for them is ad hoc/ and I don't produce anything, just share knowledge and offer advice. Work is either at their office or from home.
If I do have to have to register as a ST, does this bring any added complications for myself? 
Any advice gratefully received. 

You have not mentioned in your text the query around IR35 indicated in your title.

If you are operating as Sole-Trader, IR35 is not applicable.

IR35 would only apply if you operated through your own Limited Company.  From the limited information shared in your post, it would seem that a status assessment would determine outside IR35.

Thanks... sorry I included IR35 in the title as the company I am doing the work for had had it as the subject of the email so I thought it must be relevant. Yes it's just me- no limited company. I think from the answers by registering for SA as I have then HMRC see me as a sole trader/ self employed, so I'm not sure it comes with any extra complications... thank you for answering.