Freelancing - a few questions...

[roogi]

I currently have a full time job, but an opportunity has presented itself to do some freelance work on the side and there could potentially be more work of a similar nature in the future.

I'm assuming I'll need to set up a limited company so I can invoice for the work, but not sure how it needs to be set up for paying tax, especially as it is a second income for me.

As this is also my first piece of freelance work has anyone got any tips? It seems simple in my head, but there's probably something that I'm missing in the process. Any advice would be much appreciated.

[Eric Mc]

There is no legal or tax requirement to operate a freelance/trading activity through a limited company.

However, there may be commercial and tax planning advantages in doing so.

You need to chat to an accountant.

[Rude-boy]

Eric Mc said:

There is no legal or tax requirement to operate a freelance/trading activity through a limited company.

However, there may be commercial and tax planning advantages in doing so.

You need to chat to an accountant.

This all the way.

I am PAYE on two jobs and three to four days a year I also work freelance for another person on one job. With things that way round I just pop it in the SA return and pay my dues (other taxes may be due) for NI. Fairly simple, but not always as clear as you might think it should be. That said I might just throw the lot at an accountant this year as shortly one of the other two will move away from PAYE...

[Rude-boy]

doogz said:

There's nothing in your contract about having another job/working for anyone else?

Might be worth a check if you're not sure.

Another good point.

My main employer has removed that term from mine but it should be in any half reasonable draft employment contract.