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Best approach to earnings

(4 Posts)
OrangeSunset Fri 03-Jul-15 13:50:21

I'm lining up a job with a local company, approx 16 hours per week doing internal comms and marketing.

The role is for a pro rata salary of approx £40k, which I think equates to around £20 per hour.

Numbers and tax aren't my strongest point....which structure would be best for me, salaried or freelance/self employed?

I've set up a limited company previously to work in IT, which made sense due to the day rate I was charging and the hours I was working. I don't think it's right in this instance.

As a freelancer, how would I pay tax and Ni? If I understand the allowances, I'd just be taxable on the amount above £10k I.e. Approx £4k per year based on working a 16 hour week/48 weeks per year.

Or am I better off being salaried?

Grumpyoldblonde Fri 03-Jul-15 15:43:45

Will this company be your sole client or job?

OrangeSunset Fri 03-Jul-15 16:47:39

Yes, I expect so. Though will possibly have to take into account c. £5000 income from property rental, split with DH (and less mortgage interest).

Grumpyoldblonde Fri 03-Jul-15 17:59:47

Well, firstly are the company open to you freelancing for them? and would you be looking for other clients? If this would be your only job and they would be employing someone for it then they could be on sticky ground with HMRC having you freelance when you could be employed.
Anyway, it is very simple to pay your tax in the manner you ask, just call HMRC and tell them you will have extra earnings and will need a self assessment form, which is very easy to fill in if you don't have multiple income streams and expenditure. They will advise if you will need to pay NI, there is a small earnings exemption form you can complete if you earn under approx. 5800.00. Very simple.

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