Freelance vs casual rates?

applegrass

Hello!

I'm currently freelancing for a major organisation, and I think I have three options when it comes to getting paid:

- Invoicing the company direct, getting all the money and then filing some kind of tax return at the end of the year?
- Going thru an umbrella company, because apparently they can deduct certain expenses before giving me some money via PAYE?
- Going on the company payroll temporarily via PAYE, which pays the least but seems the easiest?

How difficult is it to file a tax return, if I keep all receipts? Does it require the services of a professional, or is it an online form?

Which option would make me the most money?

Please help!

Ta!

Anrew

Murdina

This is not a question of you choosing the cheapest option in terms of tax. Either you are an employee in which case the company should operate PAYE, or you are self-employed, in which case you should register as such for both tax and NI and may claim any expenses incurred wholly & exclusively for the purposes of your business. You complete an SA return which can be done online but you of course have to have kept proper records - if not and HMRC ask for them, you can get fined (a lot!)
Have a look at other threads in this forum and http://www.hmrc.gov.uk/employment-status/index.htm
as a starting point.

Using an umbrella company is a whole other ball game now - these have led to a lot of anti avoidance legislation (eg something called IR35).