Pay from a Dutch comapny....

[TheAnalyst]

Hello all,
I've been doing some work for a dutch company that are opening a new hotel in Glasgow.

From the hotel opening in a couple of weeks time I'll be providing them with 10 hours IT support with an availability retainer too, worth total about £700 a month. The support will be shared with a colleague and we have just set up a LTD company and are in the process of opening a business bank account.

In the meantime I am helping them setup their systems myself and come the weekend I'll have done about 60 hours for them over the last 10 days, I want to invoce for these at the end of the month however I want this to all be seperate from the ongoing support contract.

I have to send my invoice to Holland and all they need is my IBAN account number to transfer the payment to my personal account here in the UK gross of any tax/ni deductions.

How does this work.... how do I go about declaring this to the tax office, do I need to register as a sole trader for this? Does a sole trader get an individual reference number that would need to be included or something?

It's only going to be for a few weeks with this 60ish hours and then perhaps another 60 hours but it's worth about £4k... as I said after this everything on-going will be going through the LTD company we have setup.

Any advice?

Thanks!

[Moscow Mule]

Just add it as extra income on your self assessment. Don't think there's a need to register as self employed as it's incidental to you main work.

If that's wrong, I'm sure an accountant will be along to correct me.

[Scrag Meister]

If they are happy dealing direct just raise a personal invoice to them for your hours worked, than declare as required for self assessment.

Is your friend a share holder in the company? If not just invoice through the company and keep it recorded in a separate balance sheet nominal account. Admittedly you'll pay Corporation Tax on it, but then again you would b paying personal tax if you reach the 43k limit anyway.

[SallyPlanIT]

If they are happy dealing direct just raise a personal invoice to them for your hours worked, than declare as required for self assessment.

Is your friend a share holder in the company? If not just invoice through the company and keep it recorded in a separate balance sheet nominal account. Admittedly you'll pay Corporation Tax on it, but then again you would b paying personal tax if you reach the 43k limit anyway.

The corporation tax would be 20/21 % split over two tax years if you invoiced and personal tax of 20/40% depending on your income if you declare it on your SATR. There's also national insurance the SATR route.