Full-time job + additional work

[mbaxdpj2]

Hi all,

Hope someone can help me here with advice on what my best option is, or alternatively who I need to speak to for advice.

I currently have a full-time job with a salary of £65k a year and have never done any additional work. I have recently been asked to do some additional work for another company for a one-off payment of £25k and would like to know what’s the best way to proceed?

Should I setup as a company or a sole trader, or is there something else which would be better for me? I don’t expect this to be a regular thing so really just a one off.

[JRG]

There is no need to go through the hassle and expense of setting up a company or declaring yourself a sole trader.

If it is just a one-off payment, just enter it as such on your Self Assessment Tax Return (SATR) under heading 'Other UK income not included on supplementary pages', sub-heading '17. Other taxable income - before expenses and tax taken off:'.
If the payment is net of tax, then enter the tax paid under sub-heading '19. Any tax taken off box 17:'.

Note: If the payment is net of tax it's probably been deducted at 20%. At your current salary level the balance of the 40% tax will become payable after you've submitted your SATR.

[mbaxdpj2]

Thank you for your response, it’s much appreciated.

At present I do not currently submit a SATR (and have never) as I am under PAYE with my current employer. How does this affect things?

[JRG]

You could call HMRC and, when they eventually answer, ask them what they would require you to do about this one-off payment, short of completing a SATR. They may just adjust your tax code to collect any income tax due.

Personally, I would suggest registering for online self assessment, which covers not only one-off payments but also payments into pensions, marriage allowance transfer, share dividends, bank interest, etc.

[mbaxdpj2]

Many thanks!