From PAYE to occasional self-employed consultancy

[PRB2709]

Hi
I am currently employed PAYE, but am looking to semi-retire at the end of April of this year. Thereafter, I am aiming to do some occasional consultancy for my current firm, who may opt to pay me a small retainer and a daily rate, plus I will be doing a small amount of occasional consultancy for another firm on a daily rate basis. In total I cannot see myself doing more than 5 days per month across both companies. I was previously self-employed about 10 years ago and so already have a Governement Gateway Account and Unique Tax Payer Reference from that time. Is the easiest way for me to do this just to submit a Self Assessment Form at the end of each year as a sole trader? Any advice would be gratefully received, thank you

[TDR]

You have to first be certain that neither are a contract that could be employment. Once you jump that hurdle, TMA 1970 S7 requires you to notify HMRC by 6 October following the year of assessment that you have untaxed income.

After that, how you proceed is up to HMRC, and whether or not they require an annual Tax Return. (It's likely that they will).