Reply to: Do I need A Company???

[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.

[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?

[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.

[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.

[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]

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]

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.

[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.

[northernladuk]

Agreed!

In most cases, it would be a simple case of informing your employer of this additional work and getting a sign off. Standard text would include something along the lines of "I will ensure that the work I undertake outside of the employment hours would not be detrimental to my current employment" or something to that effect.

Erm no. If its not in there you get on with it. No need to tell the client if there is no clause. That's just going to cause problems where none exist.
And I'm sure there is no 'standwrd text'.

[LondonManc]

Agreed!

In most cases, it would be a simple case of informing your employer of this additional work and getting a sign off. Standard text would include something along the lines of "I will ensure that the work I undertake outside of the employment hours would not be detrimental to my current employment" or something to that effect.

"and is not for a competitor"

[eek]

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

Good point I was focused on the Limited Company side of things (not necessary and very rare with graphic designers) and didn't pick up the fact he had a full time job. He needs to check if he can do the work which will depend on what the company who employees him does (if it's a marketing company that sells his services directly, he has a problem, a manufacturing company that uses him for website design and it may not be an issue).

[MagicMovies]

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

Agreed!

In most cases, it would be a simple case of informing your employer of this additional work and getting a sign off. Standard text would include something along the lines of "I will ensure that the work I undertake outside of the employment hours would not be detrimental to my current employment" or something to that effect.

[northernladuk]

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.

A good point, particularly in an area where freelancing would be common.

[northernladuk]

Some guides to get you up to speed though....

Set Up a Limited Company or Be Self-Employed? – Bytestart

Working for yourself - GOV.UK

Should I register as a sole trader or limited company? | Creative Boom

[LondonManc]

We have a business/contracts section and an Accountant/Legal section and you've posted it in technical?

Mods? Can you do the needful please?

That said. Eek's nailed it so thread is all but over.

Not quite - OP needs to check their employment contract to see if they are allowed to undertake work outside of their main company. Often permies are bound to one company.