I am working under a contract that is inside IR35 under a brolly company and have been offered some extra work which I can bill for separately with a different company. The nature of the additional work is adhoc, around 2 days a week until the end of the year and then I can do 2 or 3 days a week after that for a few months at least. Would it be a good idea to setup a separate limited company, invoice as a sole trader or go through the brolly?
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Inside IR35 and additional work
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It almost entirely depends on what the long term prospects for outside IR35 work billed to a Ltd. is. For a one off part time gig it's hard to imagine using a Ltd. with the overheads would beat just plonking all the extra cash in your pension. -
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When are you going to do this extra work when your inside contract, by it's nature, is going to expect you to put 8 hours a day in for your client?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostWhen are you going to do this extra work when your inside contract, by it's nature, is going to expect you to put 8 hours a day in for your client?
Hours and days are a proxy for paying for your expertise and the reality of a role that will ebb and flow somewhere around the mark of a substantial day. A smart and genuinely self-employed contractor would be able to fit this in. :-)
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Originally posted by PerfectStorm View Post
Is that what your manager told you?
Hours and days are a proxy for paying for your expertise and the reality of a role that will ebb and flow somewhere around the mark of a substantial day. A smart and genuinely self-employed contractor would be able to fit this in. :-)'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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It's not entirely obvious to me whether OP works full time for the umbrella company. If OP has spare time and can pick up additional work, that's a quite reasonable course of action IMHO.
Back to OP's question about the mechanism to undertake the work.
Check the brolly contract for any clauses that might relate to undertaking other work. For example, there may be intellectual property, competition and / or other restrictive clauses including a requirement to notify.
Absent any issues, it's a case of looking at the most cost-effective approach. I tend to agree that a LtdCo is probably not cost effective for part-time work, so would endorse @ladymuck's approach of using a brolly.
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Originally posted by northernladuk View PostWhen are you going to do this extra work when your inside contract, by it's nature, is going to expect you to put 8 hours a day in for your client?Comment
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Stick it via the brolly. Hopefully, you're with a brolly that allows employer contribution into a pension for the most tax-efficient management of the extra cash.Make Mercia Great Again!Comment
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Originally posted by CaptainDanger View PostI am working under a contract that is inside IR35 under a brolly company and have been offered some extra work which I can bill for separately with a different company. The nature of the additional work is adhoc, around 2 days a week until the end of the year and then I can do 2 or 3 days a week after that for a few months at least. Would it be a good idea to setup a separate limited company, invoice as a sole trader or go through the brolly?
If you plan to not tell them, it means you're most likely planning to do something dodgy so my advice is don't.
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