mixing teaching perm contract with consulting contract

[BBBLondon]

I have recently obtained an offer to my first software contracting job recently, and hopefully should start my role in a few weeks time once I have sorted out all the admin stuff around setting up a ltd company.

However, I am also considering simultaneously continuing a 'light' graduate teaching role I had with a university in London. The university pays me directly through a monthly salary for the duration of my teaching.

I am wondering what is the legal status of having my programming contract through my Ltd company, and another direct relatinship with the university?

Is there any point in arranging the university to pay my ltd company instead (assuming they can do so).

Thanks!

[NotAllThere]

You can have more than one employer. For your programming contract, it's your ltd co. For you teaching contract, it's the university. No issue whatsoever.

If you could receive payment for your university work, and it was not hit by IR35, you'd be able to be more tax efficient. However, if the university work is hit by IR35 (Which seems likely as you are already in an employment relationship with them), you must treat 95% of the income from that contract as PAYE (including employers NIC) - so unless it's £££££ it's probably not worth changing that contract. (There's also the minor issue of your ltd co being for provision of computer services, or such like - not teaching)

[VectraMan]

WHS.

If your teaching pays enough to use up your allowance it'd probably be easier to simply not register your Ltd. for PAYE and just pay dividends (IR35 allowing blah blah blah...). If it's not and you're on PAYE for both then you have the slightly messy situation of having to pay some emergency tax and claim it back later.

[Lance]

and get an accountant.

All advice given so far is good but you need a specialist for the finer details.

[BBBLondon]

Thanks all. Indeed since the university teaching is not ££££, I shall just continue the current arrangement of having two employers (and use an accountant to help me reconcile the tax).

[missinggreenfields]

You can have more than one employer. For your programming contract, it's your ltd co. For you teaching contract, it's the university. No issue whatsoever.

If you could receive payment for your university work, and it was not hit by IR35, you'd be able to be more tax efficient. However, if the university work is hit by IR35 (Which seems likely as you are already in an employment relationship with them), you must treat 95% of the income from that contract as PAYE (including employers NIC) - so unless it's £££££ it's probably not worth changing that contract. (There's also the minor issue of your ltd co being for provision of computer services, or such like - not teaching)

If the OP is paying into a pension plan from the company, then it would probably be worth moving both contracts to inside the company. Deduct the pension contributions from the IR35-caught income first and that may well be worthwhile doing.

That's how I treat all my income from the work that I do inside IR35.

[fidot]

You don't have to wait until the end of the tax year to sort it out.

Once each employer has done an RTI return for you, you (as the employee) can contact HMRC and say I have 2 employers and want to split my tax code between the two. It's then up to you to tell them the ratio you want. for me, they only asked the expected salary from each employer, so it was pretty simple really.