Employed vs Self Employed
Discussion
I'm wondering if anyone here can help me.
I currently run a limited company. I will be working for a different company 3 days a week, and focussing on my own company the other 2 days.
The options are, I can either work for this company as an employee for 3 days, or I can invoice them and sub contract my services to them from my own company.
I am not VAT registered and overall earnings not be in a high tax bracket.
I understand that I can charge about 25-50% extra if I am sub contracting (due to lack of employee benefits), but I'm at a loss as to which option to go for.
From what Business Link have told me, taxation will be similar for both options. So I guess it would make more sense to go with the sub-contract option, as I will be bringing in an extra 30% or so. Or have I missed something?
I currently run a limited company. I will be working for a different company 3 days a week, and focussing on my own company the other 2 days.
The options are, I can either work for this company as an employee for 3 days, or I can invoice them and sub contract my services to them from my own company.
I am not VAT registered and overall earnings not be in a high tax bracket.
I understand that I can charge about 25-50% extra if I am sub contracting (due to lack of employee benefits), but I'm at a loss as to which option to go for.
From what Business Link have told me, taxation will be similar for both options. So I guess it would make more sense to go with the sub-contract option, as I will be bringing in an extra 30% or so. Or have I missed something?
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