what are my options?

[anonymous-user]

I am currently working as an IT guy for a small company, just handed in my notice as I'm going to work in IT Security on a 4 on 4 off rota somewhere else.

My current employer has asked if I can do 1 day a week work for them and provide advice etc as a contractor.

The value of the contract work will be approx £600 per month.

Should I set up a limited company? Could that be in my partners name, as she is a stay at home mum might be better for tax reasons?

I read about umbrella companies, is this the best way?

Just HAS to be 100% legal etc. Can anyone point me in the right direction?

Edited by anonymous-user on Monday 14th May 19:41

[CubanPete]

That doesn't sound big money for a day a week in IT.

I would just ask them to pay you PAYE on an emergency tax code.

[Contract Killer]

Your thinking of setting up a Ltd company for £7K a year??

£150/Day seems way too low for any contractor, let alone IT contractor.

Is it worth the hassle??

[anonymous-user]

Thanks for the comments, I understand it's not much. But it would help in my situation, leaving a 37k job for a 30k one and have to support myself, partner (stay at home mum) and 2 young children.

Am I best staying PAYE then? Also, I am yet to here if it is even contractually allowed at the new place, to work somewhere else as well.

Thanks

[iphonedyou]

Sounds like your current employer has suggested more or less pro rata'ing your current salary?

Doesn't work like that!

[anonymous-user]

Yep that's what he has suggested.

[LivingTheDream]

nice try from the employer - saves on Emp NI, pension etc as well

[LivingTheDream]

btw

I would suggest he pays market rate maybe minus a small discount as a favour from you. Market rate depends what you do but £400-£600 a day is probably the spread.

bare in mind in you set up a limited you have associated costs (assuming you cannot do accounts yourself for example). Insurance, Accountant, etc etc

so at the bottom of that range assuming you do 4 days a month = ~ £19k

[KevinCamaroSS]

The first thing you have to consider is whether your new employer will allow this. What does your new contract state regarding working for others?

I agree with the others that you should be looking at a minimum £200/day if your are able to do the extra work. No need for a company to do that.

[anonymous-user]

Thanks for the replies.

I have not yet signed a contract, just accepted an offer. I emailed yesterday and am waiting for a response, once I get that, I will ask for £200 per day and just to be kept as PAYE I think.

[anonymous-user]

Just had confirmation from new employers that it is OK, now to talk about staying PAYE to current employers!