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orie1925
13th March 2017, 16:14
Hi all,

I am entirely new to contracting, but have the option of a ~1 day per week (~£400 a week) contract supporting a government department. This is in addition to my normal PAYE employment.

What is the best way to go about this? Ideally would like to minimise tax burden, but also want to avoid any complex procedures/challenges.

I also would appreciate how an option such as an Umbrella company fits with a self-assessment tax return. I will be filling in a self-assessment return for my normal employment. If the Umbrella company income is my additional income, but has different tax rules - how is that resolved when a self-assessment is completed?

All advice very much appreciated!

Scruff
13th March 2017, 16:27
Brolly Dolly 🕊

northernladuk
13th March 2017, 16:33
umbrella ella ella eh eh eh

RonBW
13th March 2017, 16:44
I am entirely new to contracting, but have the option of a ~1 day per week (~£400 a week) contract supporting a government department. This is in addition to my normal PAYE employment.

What is the best way to go about this? Ideally would like to minimise tax burden, but also want to avoid any complex procedures/challenges.

Your best bet would be to get the government department to take you on as a self employed person, since there is no agency in the mix. If that's not possible, then ask the department whether they can pay you through their own payroll for the work that you do, deducting the appropriate taxes. If that's not possible, then and only then should you look at an umbrella provider - if you don't need to add someone to the chain who can go bust with your money or will take a cut from your earnings then you would be daft to jump to that conclusion from the outset.

eek
13th March 2017, 17:54
Your best bet would be to get the government department to take you on as a self employed person, since there is no agency in the mix. If that's not possible, then ask the department whether they can pay you through their own payroll for the work that you do, deducting the appropriate taxes. If that's not possible, then and only then should you look at an umbrella provider - if you don't need to add someone to the chain who can go bust with your money or will take a cut from your earnings then you would be daft to jump to that conclusion from the outset.

+1 for a £400 a week contract the umbrella fees are a absolute killer....