Do I need A Company???

[BaileyM]

Hi There!

This is my first post so please forgive me if this is the wrong place or I do anything else I shouldn't haha.

I'm currently employed by a company as a graphic designer. Someone has approached me (outside of the company I work for) and asked me to carry out some work for them- for which they'll pay me. This is quite a large project with the total cost for the client being just under £1000 and is something I'll complete in my spare time. Being a full-time employee to a business, I do not have a limited company or any freelance infrastructure set up. This is a one time project but does have the potential to progress into my projects from this client down the line. Do I need to set up a business just to take on this one client? If so... What's the simplest way of handling this situation so that I fall in line with the law. As you can probably tell I really don't know much about taxes or limited companies so layman terms in the replies would be very much appreciated.

Thank you!

[eek]

Hi There!

This is my first post so please forgive me if this is the wrong place or I do anything else I shouldn't haha.

I'm currently employed by a company as a graphic designer. Someone has approached me (outside of the company I work for) and asked me to carry out some work for them- for which they'll pay me. This is quite a large project with the total cost for the client being just under £1000 and is something I'll complete in my spare time. Being a full-time employee to a business, I do not have a limited company or any freelance infrastructure set up. This is a one time project but does have the potential to progress into my projects from this client down the line. Do I need to set up a business just to take on this one client? If so... What's the simplest way of handling this situation so that I fall in line with the law. As you can probably tell I really don't know much about taxes or limited companies so layman terms in the replies would be very much appreciated.

Thank you!

You are being employed directly so you can be self-employed. Just register yourself as self-employed with HMRC and then remember to do a tax return,

[northernladuk]

We have a business/contracts section and an Accountant/Legal section and you've posted it in technical?

Mods? Can you do the needful please?

That said. Eek's nailed it so thread is all but over.

[LondonManc]

We have a business/contracts section and an Accountant/Legal section and you've posted it in technical?

Mods? Can you do the needful please?

That said. Eek's nailed it so thread is all but over.

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

[northernladuk]

Some guides to get you up to speed though....

Set Up a Limited Company or Be Self-Employed? – Bytestart

Working for yourself - GOV.UK

Should I register as a sole trader or limited company? | Creative Boom

[northernladuk]

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

A good point, particularly in an area where freelancing would be common.

[MagicMovies]

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

Agreed!

In most cases, it would be a simple case of informing your employer of this additional work and getting a sign off. Standard text would include something along the lines of "I will ensure that the work I undertake outside of the employment hours would not be detrimental to my current employment" or something to that effect.

[eek]

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

Good point I was focused on the Limited Company side of things (not necessary and very rare with graphic designers) and didn't pick up the fact he had a full time job. He needs to check if he can do the work which will depend on what the company who employees him does (if it's a marketing company that sells his services directly, he has a problem, a manufacturing company that uses him for website design and it may not be an issue).

[LondonManc]

Agreed!

In most cases, it would be a simple case of informing your employer of this additional work and getting a sign off. Standard text would include something along the lines of "I will ensure that the work I undertake outside of the employment hours would not be detrimental to my current employment" or something to that effect.

"and is not for a competitor"

[northernladuk]

Agreed!

In most cases, it would be a simple case of informing your employer of this additional work and getting a sign off. Standard text would include something along the lines of "I will ensure that the work I undertake outside of the employment hours would not be detrimental to my current employment" or something to that effect.

Erm no. If its not in there you get on with it. No need to tell the client if there is no clause. That's just going to cause problems where none exist.
And I'm sure there is no 'standwrd text'.