MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Looking from advice from the contractors on here. I've been asked to go and do one day's work for a company. Do I need to set my self up as a sole trader in order to invoice them, or is it possible to just do it as a private individual without setting anything up (and then declare it on my tax return)?
It's possible this may lead to more work - hence why it's worth doing just one day (though a day's work at contractor's rates is always appealing if it's not too much hassle!) However I don't want to go to the hassle of setting something up if I don't have to, as there is nothing definite (or I may even just get myself a more normal job first).
Just do the work and make up an invoice using Word.
You could tell HMRC but you would be very unlucky to be caught as a one-off.
It also depends on the company you would be doing the work for; they may (or not) require that you've a company bank account, insurance, VAT number etc
IIRC you can contact HMRC after you have earned the money, let them know how much your earned and they will adjust you tax code and the income tax is taken through your salary.
I've have my own Ltd company but have recently gone down a zero hours PAYE route with a current company, previous Client due to their new PI / Contractor compliance requirements.
I would check their requirements. In my case the previous working arrangement had been amended and I / they got caught out with the new group policy.
I walked off the job for a day to consider options and was happy to offer PI but the working arrangement would have to change. Something that was not feasible to them. I offered the Zero Hours as a solution.
Or use an umbrella company who will do it for you for a one off charge.
You can declare a one off earning to hmrc and have the paye on your real job adjusted to compensate. They did say that more than a couple in a year for the same type of work is getting into the realms of being self-employed though so you can't just keep doing it.
Prob why they use the phrase "one off" to be fair.
What's wrong with cash in hand?
Not much of a contractor if that old chestnut didn't spring to mind initially. 🙂
it will depend what the company requires.
Setting up as a sole trader takes a couple of mins on the .gov website. Hardly anything to it.
You can't charge VAT unless registered.
I'm not sure what "setting up as sole trader" means...what is there to set up? Just invoice them and worry about this crap he it turns into anything big.
Basically just letting the man know so they can take their cut.I'm not sure what "setting up as sole trader" means
http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm