Employed + Limited Company ?
Discussion
How does this work ? I have a full time job - employee and have also been offered a part time job. In the part time job I have to invoice the company for my services.
Whats the best way to do that ? Start a limited company ? Would I have to speak to my employer about it in regards to tax or anything ?
Whats the best way to do that ? Start a limited company ? Would I have to speak to my employer about it in regards to tax or anything ?
Depending on the amounts of money involved I would suggest that starting a Ltd company would probably be overkill. You will need to file a self assessment tax return to HMRC where you declare your earnings outside of the normal PAYE system, and this will tell you how much tax you need to pay on these extra earnings.
One bit of advice if you do start earning money outside of PAYE is to plan how you are going to pay the tax bill for the extra income when it comes. I get income from property which once payed into my current account I then split out into seperate accounts, one for money I can effectively spend (or plough into long term savings) and one which I use to pay the tax bill when it comes and which I don't touch until that time.
Usual caveat applies though, speak to an accountant as everybodies situation can be different and what's right for one isn't right for everyone.
One bit of advice if you do start earning money outside of PAYE is to plan how you are going to pay the tax bill for the extra income when it comes. I get income from property which once payed into my current account I then split out into seperate accounts, one for money I can effectively spend (or plough into long term savings) and one which I use to pay the tax bill when it comes and which I don't touch until that time.
Usual caveat applies though, speak to an accountant as everybodies situation can be different and what's right for one isn't right for everyone.
Firstly, look at your Contract of Employment with your employer. They may have exclusive rights to your services and you may need to seek their permission first.
Then you need to find out if the new company will allow you to invoice as a Sole Trader or if they insist on dealing with a company. If the former then you can use Self Assessment. If the latter then I'd suggest using an Umbrella Company initially. Setting up a Limited Company may well be overkill.
Then you need to find out if the new company will allow you to invoice as a Sole Trader or if they insist on dealing with a company. If the former then you can use Self Assessment. If the latter then I'd suggest using an Umbrella Company initially. Setting up a Limited Company may well be overkill.
MrCippo said:
ok. so LTD might be overkill what the solution ? Self employed ?
Self Employed (Sole Trader) if the client are happy with that, otherwise use an Umbrella Company if they will only deal with a company. Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff