Newbie

[MarkKnight1984]

Hi All,

I have been in permanent employment all of my life, I have recently finished my last job and have pick up 2 weeks of contract work, where a client has offered to pay me a day rate for the 2 weeks.

I am due to start a new permanent job soon so didn't want to start a limited company, however don't know the correct way to get paid for this job?

Can I have request to have it paid into my personal bank account and advise HMRC when I do my end of year tax that I did the work and pay the approbate rate of tax.

Or should I engage with an umbrella agency and ask them to manage it on my behalf?

Thanks very much for you advice!
Mark

[Manic]

Hi All,

I have been in permanent employment all of my life, I have recently finished my last job and have pick up 2 weeks of contract work, where a client has offered to pay me a day rate for the 2 weeks.

I am due to start a new permanent job soon so didn't want to start a limited company, however don't know the correct way to get paid for this job?

Can I have request to have it paid into my personal bank account and advise HMRC when I do my end of year tax that I did the work and pay the approbate rate of tax.

Or should I engage with an umbrella agency and ask them to manage it on my behalf?

Thanks very much for you advice!
Mark

Do you have a signed contract (statement of work) or is this a looser arrangement?

[northernladuk]

You haven't mentioned an agent. Agents will not engage with sole traders for various reasons so if there is an agent involved then no you can't work like that. It's either Umbrella or Ltd.

Let's assume this is direct with the client. It is possible to work as a sole trader but this will be up to your client. There are certain risks around it for the client. The tax liability could fall back on them if you don't pay and it's unlikely you'll think about buying the proper insurances. There is a risk to you as you don't have the protections a limited company brings.

That said, it's only two weeks. You need to be asking the client if they are happy to take you on as a sole trader or not. If they say no then it's brolly for you. If they do then yes, go ahead as you suggest.

If it is a very loose agreement as we suspect it might be, be ready for it to go wrong and at worst not get paid (you have no payment terms in writing etc). Forewarned is forearmed so just keep your eyes open.

Also be prepared to go in fast and hard. You get a nice warm up period as a permie to get you up to speed. A client wants a full day out of you from day one as a contractor. That's one of the major differences with what we do and it takes some people by surprise.

[malvolio]

KISS principles apply. Fill out a self assessment form declaring the extra earned income and the taxes will be sorted out in the next tax year. For two weeks' work, you don't need anything more complicated.

[MarkKnight1984]

Do you have a signed contract (statement of work) or is this a looser arrangement?

I am going direct to the client, not via an agency.

We have a contract in place and have agreed 14 day payment terms.

How do I set up as a sole trader?

As its only 2 weeks or work, I wanted to keep the costs to a minimum.

Thanks for you advice

[northernladuk]

I am going direct to the client, not via an agency.

We have a contract in place and have agreed 14 day payment terms.

How do I set up as a sole trader?

As its only 2 weeks or work, I wanted to keep the costs to a minimum.

Thanks for you advice

5 Things You Must Do When You Go Self Employed – Bytestart

Or if you like taking risks or a gambling man just bank it and put it to one side in case you get caught :

[simes]

Or if you like taking risks or a gambling man just bank it and put it to one side in case you get caught :

To be frank, I had actually written pretty much exactly this response, but first asking if there was an agency or intermediary involved.

I then deleted it in case there was a flood of holier than thou responses.