Do I need A Company???

[mudskipper]

I don't think you need to register as self employed - you're not, you're an employee of your main job.

Assuming your employment allows it, simply submit a tax return showing the additional income and pay the corresponding bill.

[eek]

I don't think you need to register as self employed - you're not, you're an employee of your main job.

Assuming your employment allows it, simply submit a tax return showing the additional income and pay the corresponding bill.

Set up as a sole trader - GOV.UK

You need to set up as a sole trader if any of the following apply:

• you earned more than £1,000 from self-employment between 6 April 2019 and 5 April 2020
• you need to prove you’re self-employed, for example to claim Tax-Free Childcare
• you want to make voluntary Class 2 National Insurance payments to help you qualify for benefits

so it depends on how close the OPs expected income gets to or over the £1,000 mark.

[Lance]

for £1,000????

Trouser the cash and say no more about it.
The chance of investigation is so low. And the financial impact equally low it's hardly worth it.
This was advice I got from a qualified accountant when I did similar before I became a contractor.

No it's not legal.

If OP wants to be squeky clean, then self-employed is the way.
I'd totlly ignore the employer. Worst case scenario is they dish out a formal warning. It's not going to be gross misconduct, so not soemthing you can be fired on the spot for.

[eek]

for £1,000????

Trouser the cash and say no more about it.
The chance of investigation is so low. And the financial impact equally low it's hardly worth it.
This was advice I got from a qualified accountant when I did similar before I became a contractor.

No it's not legal.

If OP wants to be squeky clean, then self-employed is the way.
I'd totlly ignore the employer. Worst case scenario is they dish out a formal warning. It's not going to be gross misconduct, so not soemthing you can be fired on the spot for.

If they sell your services as a graphic designer to other companies it might be...

[Lance]

If they sell your services as a graphic designer to other companies it might be...

but they'd almost certainly, unless OP has been a naughty boy, just give a formal reprimand. IF THEY FOUND OUT.

[LondonManc]

The other option is to see if it's worth your existing company taking new client on in an official capacity. Saves a lot of hassle and you could end up with an introducer's fee.

[Paralytic]

If they sell your services as a graphic designer to other companies it might be...

Especially if the third party has gone to the employer, been given a quote they didn't like, so then decided to see if they could go directly to the person who would be doing the work anyway. It certainly wouldn't be the first time that had happened.

BaileyM, can you say for sure that taking on this work could not leave you open to a claim that you've cost your employer income? If that could be the case, I'd say it could be grounds for gross misconduct and an immediate termination.

However, if the new work is completely unrelated, then the other advice above is probably safe, even though it probably does contravene your contract in taking on the same work for other clients. Some employment contracts will have your employer retain *all* IP you produce, even if not in company time. Even if it wouldn't stand up in court, is it something you're willing to fight? Have you checked your employment contract for any restrictions?

Can you say how this new client contacted you, and why you, and not someone else?

[DoctorStrangelove]

30 years ago when I did a little work for a previous employer I just declared the income on the tax return and that was that, apart from the tax office inquiring if this was ongoing or a one time thing.