Self employed - using adhoc consultant

[markmarkymark]

Yo all...

A bit of advice please (from any who are in the know). I know I can go to an accountant - but your thoughts also count !

Basically I have a full time PAYE job.

I also have a soletrader consultancy (gives safety advice - no physical products sold).

I use self assessment to deal with the sole trader profits etc ...

Now , things are getting busy and I have no more time to do the consultancy side and I need some help. I do not need too much help, it will not be required on a regular basis (more like three or four times a year). The important thing is the help will be four my consultancy (i.e. they do it in the name of my consultancy - rather than in their own name) ...

Now... I want this to be simple as possible. Therefore I do not want them as an employee (cos I have all the horrible tax and NI to sort).

So - can I get away with paying them as a contactor? If I do they have to sort out their own tax. Therefore do they need to declare that they are 'self-employed' - I guess they do?

The problem is that to be self employed means that you take a lot of responsbilitt for your own actions / control your own work - which is not wha t I want since they will be doing the work for me ....

.... then that sounds more like an employee. But, what If I need them for only four times a year at fixed cost (i.e. I pay them a set amount for getting a job done), then am I really then making things complicated ??????

any advice would be great !

CHEERS

Mark

[Bifta]

You can pay them as a contractor, there are a few ways to work around the IR trying to shaft you, they just have to prove that they decide if they want to take work on or not, that they don't work in your premises solely for you etc, all pretty easy.

as a contractor you set up a ltd company and then pay yourself a small salary and dividends. Used to get the forst £10000 of dividends free of corporation tax but i beleive that changed in the budget and now you pay 19% tax on dividends (i think)

Originally Posted by gary_580

as a contractor you set up a ltd company and then pay yourself a small salary and dividends. Used to get the forst £10000 of dividends free of corporation tax but i beleive that changed in the budget and now you pay 19% tax on dividends (i think)

Yes, the finance bill that was released today means that what was an "incentive" to get people to set up limited companies is now a "loophole" which the Chancellor has closed.

Ba$$$$d!