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Set up ltd for 2nd income

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    Set up ltd for 2nd income

    Normally one would set up a limited company and channel all the revenue to it.

    However, if one already has a first job (PAYE) but also has a second income from another source, is it advisable / possible to set up a limited company and channel all of the second income into it?

    If so, how does having the first job affect things, in terms of tax-free allowance, NI, etc.?

    Thanks

    #2
    Has one thought about a face to face with one's accountant to see what options are available to one?
    Most will do a free consultation so you can explain the situation and amounts and come up with a plan.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by northernladuk View Post
      Has one thought about a face to face with one's accountant to see what options are available to one?
      and a lawyer to check what the terms and conditions of your day job allows you to do....
      merely at clientco for the entertainment

      Comment


        #4
        Originally posted by eek View Post
        and a lawyer to check what the terms and conditions of your day job allows you to do....
        If s/he isn't in competition with his/her first job it shouldn't be a problem.
        "You’re just a bad memory who doesn’t know when to go away" JR

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          #5
          Originally posted by SueEllen View Post
          If s/he isn't in competition with his/her first job it shouldn't be a problem.
          I wouldn't want to bet on that. I've seen consultancies grab money from staff that had absolutely nothing to do with them...
          merely at clientco for the entertainment

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            #6
            At the risk of answering the question : 1. Yes. 2. Not at all.

            Just pay yourself out of dividends from your company as and when you feel like it and declare it on your self assessment.
            Will work inside IR35. Or for food.

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              #7
              Good article on the whole second job thing on the crunch website here..

              http://www.crunch.co.uk/freelancer-a...-need-to-know/
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Thanks to all for your helpful advice.

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