Self Employed v Ltd Co.

[man]

If the money aside works out similar I'd avoid going Ltd if at all possible. VAT, PAYE, pensions regulation, UTRs, separate HMRC accounts etc, etc - it all takes precious time to get your head around, sort out, clean up your inevitable mistakes, understand all of the deadlines and fill in all of the paperwork. Unpaid, unbillable time.

[Craig@Clarity]

Thanks.

At this stage s-e looks the easier option. If it continues longer term that might be the time to incorporate.

I shall get him to pay tax to HMRC up front if I can so there is less to worry about Jan 21 when it really falls due.

He'll have to register as self employed first with HMRC and get a UTR. The personal tax won't be due until 31 January 2021 and nothing will be assessed until the end of the this tax year being 5 April 2020 when he can work out how much he actually owes. It's up to him if he wants to pay it asap after 5 April though.

[ASB]

Thanks.

At this stage s-e looks the easier option. If it continues longer term that might be the time to incorporate.

I shall get him to pay tax to HMRC up front if I can so there is less to worry about Jan 21 when it really falls due.

[Craig@Clarity]

Son is atc uni. He has a part time job which pays approx 5k.

He has an opportunity for 40k of media work. Trav/Subsistance will eat about 10k in expenses.

By my calculations it seems to be little difference now between being self employed or ltd co due to the 7.5% dividend tax.

Is that correct now ?

IR35 shouldn't be an issue. Its fixed price, his equipment, can (and does) substitute.

Based on this info, he'd be better off by £230 (approx. £28,420 net income) if he went self employed so pretty much nothing in it.

[Lance]

Son is atc uni. He has a part time job which pays approx 5k.

He has an opportunity for 40k of media work. Trav/Subsistance will eat about 10k in expenses.

By my calculations it seems to be little difference now between being self employed or ltd co due to the 7.5% dividend tax.

Is that correct now ?

IR35 shouldn't be an issue. Its fixed price, his equipment, can (and does) substitute.

I guess it depends.
- does your son want the responsibility of running a LTD?
- is the £40k work all of it with no further work? If no further work then I'd suggest that self-employed makes more sense.

There isn't much difference in the numbers.
Here's a calculator I googled. Self Employed Tax Calculator | Employed and Self Employed

[ASB]

Son is atc uni. He has a part time job which pays approx 5k.

He has an opportunity for 40k of media work. Trav/Subsistance will eat about 10k in expenses.

By my calculations it seems to be little difference now between being self employed or ltd co due to the 7.5% dividend tax.

Is that correct now ?

IR35 shouldn't be an issue. Its fixed price, his equipment, can (and does) substitute.