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I work FT, what are the implications of me doing some paperwork for boyf who has a ltd company?

(6 Posts)
mascaraohara Mon 22-Jun-09 22:26:20

I'm considering doing some paper work for boyf who has a ltd company and he would put it through the books.. is thsis possible/allowed what are the implications (tax etc) can anybody help?

CantSleepWontSleep Mon 22-Jun-09 22:38:58

You can either do it on a self-employed basis (you can be employed and self-employed at the same time), in which case you would have to register as self-employed and pay NIC accordingly (is only about a tenner a month), and do basic accounts and a tax return at the end of every year, or he could employ you, and then operate a PAYE scheme, which he presumably does for other employees anyway?

LadyMuck Mon 22-Jun-09 22:39:31

Are you doing it on a self-employed basis or as an employee?
Is there anything in your existing job contract which either prevents this or requires you to inform them?

mascaraohara Mon 22-Jun-09 22:43:13

yeah he would effecively employee me I think

CantSleepWontSleep Mon 22-Jun-09 22:49:31

Well if he employs you, then I guess the thing to look into is what happens with your personal allowance. I guess that this is all used up by your current job, but I'm not sure if the course of events is to pay you based on your tax code (effectively taking the allowance twice) and then you doing a tax return and paying the extra tax at the end of the year, or whether he has to tax all of your income at your highest tax rate. The Inland Revenue (or whatever they're called these days) are good on advice about this sort of stuff, so I would give them a call before you start work.

Does he have other employees and someone who does his payroll for him?

mascaraohara Tue 23-Jun-09 12:46:59

Thnaks, maybe I should have a surf through there website.. it would only be maybe half a day a week on a weekend.. Doing his invoicing, accounting, organising his jobs etc

At the moment he doesn't employ anybody but he may have to take someone on in a few months in which case I will end up sorting out all of that side of stuff as well.. cos he is just rubbish at the management/financial side of things.

I'm quite interested in the tax implications so will have a looka t that site.. it might be better if I just do it for nothing if the tax will be extortionate and he can give me extra 'housekeeping' or something

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