Side project - how to organise
Discussion
I have a full time PAYE job (in the 40% tax bracket).
I have a limited company from when I ran a business previously.
I've been offered an opportunity to work on a side project for a small startup business in a business area unrelated area to my work (I've checked and there is nothing in my work contract that prevents this). If this works out I'll be earning around £10-£15k p.a. from this. I'd be paid an hourly rate for this (the hours would be flexible and depend on what they need at any time and I'd not have to accept any tasks I don't want to).
There is a small possibility it will lead to more in future (but this is fairly remote at this stage).
How would it be best to organise invoicing to ensure I earn the most into my bank account after tax and all accountancy costs etc. are paid (the client doesn't care about how this is arranged if they pay the same)?
1) Invoice through the limited company pay myself a dividend (would IR35 be a concern here?).
2) Close the limited company and invoice as an individual on a self-employed basis.
3) It's a complex question that depends on your circumstances - get expert advice?
I have a limited company from when I ran a business previously.
I've been offered an opportunity to work on a side project for a small startup business in a business area unrelated area to my work (I've checked and there is nothing in my work contract that prevents this). If this works out I'll be earning around £10-£15k p.a. from this. I'd be paid an hourly rate for this (the hours would be flexible and depend on what they need at any time and I'd not have to accept any tasks I don't want to).
There is a small possibility it will lead to more in future (but this is fairly remote at this stage).
How would it be best to organise invoicing to ensure I earn the most into my bank account after tax and all accountancy costs etc. are paid (the client doesn't care about how this is arranged if they pay the same)?
1) Invoice through the limited company pay myself a dividend (would IR35 be a concern here?).
2) Close the limited company and invoice as an individual on a self-employed basis.
3) It's a complex question that depends on your circumstances - get expert advice?
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