Sole Trader vs Limited Company

[PuddinAforeDinner]

For info, I currently work full time as an employee.

I have recently been approached about doing some freelance work from home during the evenings and at weekends for a specific company. My question is, would it be better to be self-employed as a sole trader or start a limited company.

Thanks in advance .

I am no expert but I think for freelancers it's easier just to be a sole trader. It's quite straight forward to register with HMRC and do a tax return. There is more involved once you set up a ltd company.

Thank you Doyoumind, that is what I thought but wanted confirmation .

It is a lot more complicated but before deciding you need to establish if the work contracted would fall in or outside IR35. Unfortunately the HMRC CEST tool that you can complete to help guide you is unreliable but will give you a flavour. In essence if the company contracting retain a high degree of control over how you do the work then you will not be able to put the earnings through a limited company as you will pay tax and national insurance.

Too complex to write all out but Google it

Start of as self employed sole trader and can just trade under own name . you'll need duel tax code to continue as employee and have to fill in a self assessment every year for self employed work .