My daughters boyfriend has been asked to contribute some coding for open AI or something.
He is being paid quite a healthy hourly rate and has actually been paid twice so far. I suspect he would do the work for free.
My question is what should he do with regards NI and tax as the monies have just been transferred straight to his bank account.
Should he setup a business, file self assessment, etc.
What could he claim as legitimate business expenses.
TIA
ltd company, theres lots of accountants that specialise in this stuff, they'll give you software (likely freeagent) that keeps you on the straight and narrow.
Is this something he's doing on the side on top of a 'normal' PAYE job? If so (and depending how much he's earning from it), the easiest thing is to do a self-assessment at the end of the tax year and just pay the tax owed.
As for business expenses, again the easiest thing to do is just claim the £1000 trading allowance.
Thanks for the replies so far.
He is at University currently and might start doing Deliveroo.
I should also add the current job is only for a month.
But since he's being paid £130 an hour it won't take long to get up near the thresholds.
Would it be wise for him to pay NI now or just leave that for SA?
If he’s at uni, and no other work. He’s likely got a bit to go on his personal allowance.
Just an aside, each time I’ve contracted I’ve also taken out business liability insurance. Depending on what he’s doing and the risk maybe worthy of consideration.
open AI or something
most open stuff comes with a limited use license so I think he'd be ok on that front
the paying company can treat him as a gun for hire
but they take responsibility for what the end product
I'm no expert though, I don't work open source stuff.
I'm not an expert but I think the threshold for SA is pretty low (about £1000 or so), so he'd do well to read this
https://www.gov.uk/student-jobs-paying-tax